Pinterest Earnings and Marqeta's Outgoing CEO (Podcast)

of tough macro conditions and a change in technoidscape. Plus a conversation with Markuetta's outgoing CEO. Jason Gardner is looking for his replacement as fintech faces rising credit card debt and consumers under pressure. He says he's no longer the right person to run the company for the next phase of growth. And who is Hoadier Oliva, The fifteen year

Facebook veteran is now Meta's new CEO. Why he's being called the anti Cheryl samper Okay fintech platform Marcatta announcing strong earnings results, but news of a regime change made shareholders anxious. Marcatta is on the hunt for a new executive team share is plunged after the credit card issue. Or announced this shake up a search for a new CEO and CEO. Joining me now to talk about it is outgoing Marcatta CEO Jason Gardner, who is now searching

for his successor. So Jason tell us more of the story behind this leadership change, why and why now? Well, happy birthday and thank you, thank you, thank you very continue interested in Marcatta. I started with succession planning when I took the comedy public back in June nine one. The board was asking me about succession planning and it's not something I ever thought about. And then he got more intense in January regards to six session planning and you know what, if he got hit by a bus,

you would take over the company. And what I did is I talked to a lot of other CEOs, other founder CEOs who stepped into the exact chairman role, what they were looking for, why did they do it? Uh? And it was really really enlightening, and I felt that I'm someone who loves people, products and our customers and finding a CEO who is much better suited for our next phase of growth, which is building a sustainably profitable company Uh. That combination I thought was really really powerful

and I got really excited about it. I spoke with the board, I told him what my plan was, and I wanted to be very transparent about it, transparent to our employees, our customers, and our shareholders. And we're just really excited about this step. I care deeply about the company. It's what's best for Marquetta over the next couple of decades, and truly feel like this is the best next step

for the business. I am in the role now. I am in the role and six months or a year until we find a new CEO, but really excited about the decision and what's next. Why change out the CEO and the CEO roles at the same time so the company organizations or organisms, you know. We want to be flexible, we want to be nimble, and I've always made decisions about this having a hyper growth company. Our needs changed from time to time. Video and I have been having

conversations over the last few weeks. What's next for the for the business. The c r O is next. It's not a CEO. It's bringing in somebody who's solely focused on the revenue side of the business. While I could be focused on being a CEO and focusing on the day to day operations in the company and finding my the next CEO, and then creating the combination between that. I thought that was the best next step for the business.

She and I had that conversation. She decided to step away while I'll focus on hiring the c r O and hiring the CEO along with the team the board of the company, and again, just excited about this next step. And it feels like a way lifted off. I've i've I don't like secrets. Secrets are uncomfortable and transparency as a core tenant of who I am. So be able to talk about this publicly is just wonderful. I'm curious what advice you have to others who might be thinking

about the same thing, wondering the same thing. You know, it's I'm sure it's hard to step away from your baby essentially, but you know, what message would you send to other executives out there about you know, trying to figure out what is the right time, And maybe it is the right time. You gotta do what's best for the business. As a public company CEO, you have to do what's best for your shareholders. As well, and what is the powerful combination that is going to build a better,

stronger business in the future. And I ultimately decided the combination between a founder who wants to be focused on people, products and customers and a CEO wants to be focused on the day to day operations of the business, that is what's best for Marquette Up and I ultimately felt

that's the step that I needed to take. It's certainly surprising to a lot of people that I wanted to do that, but I love my baby who is now a young adult, and I felt that having someone else to leave this young adult too deep into the future was the best next step. So the advice I would have to founders is is be selfless, think about what is best for the company, and be very transparent about it so that people can know what your intent is as you lead into the future. Now we are in

the middle of a difficult macroeconomic environment. We may be headed into a recession. What is your outlook on the fintech landscape and the environment that your successor will be walking into. Well, we had a great first half, remaining cautious in the second half, and you're right, depending on the experts you talk to were in a recession, not in a recession. A recession is coming. It's not really clear about where we're headed. We're a very strong company

where the market leader in our space. We had fifty three percent year or year A grow. We had a sixty six percent rise and gross profit. We have one point seven billion dollars in cash, a lot of options, whether it's investing more in the business we are hiring, whether it's M and A. But there's a lot of

uncertainty moving forward. We have a very strong, obviously blue chip base of customers who continue to perform while we're building out more and more business around the world, investing on our product, investing in our people, and investing in our future. All right, Jason, appreciate you joining us, Thanks for sharing some of that with us, and we'll be watching to see how this shuffle plays out. Markettessy, Jason Gardner, take care. It's been one month since the executive shuffle

at pinter As. Last month. Co founder Ben Silverman how into the reins to Bill Ready, the former president of Commerce and Payments at Google. On his first call as CEO, Ready said he'll lay out a plan of action and coming months focusing on the appsibility to quote help people go from inspiration to realization. Bill ready joins me. Now, Bill, it's great to have you back on the show after a few years. So your first your first thirty days, what's been the focus and how are you shaping that

plan of action? Well, it's it's been a great first month with the team for sure. Um. You know, we jumped right into with with earnings uh and some great

engage with our investors. Um. But it's really been inspiring for me to see as I've come into Pinterest, the things that I really admired from the outside in terms of pinterest mission and vision and how much people really care about it being a positive place on the internet, a place that people can go for daily inspiration, um, whether they're looking for things to make or to do

or to buy. Um. It's been really great to see what a dedicated team we have around those things, and the really great momentum the team has built over many years, as well as a lot of exciting things that were in the midstuff. Now, now, you were running commerce at Google. Before that, you were the CEO of PayPal, You ran Venmo, you ran Braintree, you were actually on our show, uh several times in that role. How did the conversation start with Pinterest and how did you both come to the

decision that this was the right call. Um, So you know, have admired what been in the team here built over many years, uh, and more recently Ben and I started talking about, uh, you know, not only you know, how he was thinking about what he wanted for himself, but also what he hoped for from Pinterest. UH. And there's just a lot of really great alignment on those things

around the vision for the business. I think, you know, as as you touched on, you know in the intro, uh, the opportunity to go from inspiration to realization, I think it's just a really unique thing, uh that doesn't exist to any places. Finding inspiration and intent in the same

platform is really unique and uncommon. And I think as much as there's a tremendous amount of discovery and inspiration and intent on Pinterest, the opportunity to help people take that all the way through the realization, I think is going to be a great next chapter and where Pinterests can go. Uh. And of course you know, making sure to continue on all the really great inspiration discovery that's already the core of people love about the platform. There

was some surprise that Ben laughed. Obviously, he's a founder, he has been there for years. Can you give us any more insight into why he decided that now was the time to move on? Well, you know, Ben has done an amazing job over the course of twelve tyears building a business from zero. Uh. And so you know,

tons of admiration and respect for Ben as an entrepreneur. Uh. And the great thing is, you know, Ben and I spent a lot of time and you know, we have a lot of common vision for where the company can go. And so uh. You know, I'm excited to continue engaging with Ben. He's a very engaging and passionate board member uh and someone who I continue to spend a lot

of time with. Um. And again, you know, he's done an amazing job of building Pinterest to what it is today, and it's a great partnership in terms of where we take it going forward. I'm a big pinner and you know know that it's a super useful product and as you say, it sits at this really important intersection of social and e commerce and search. Some would say there hasn't been a lot of innovation or evolution over the last several years. How do you want to better harness

that power that pin or s has. Yeah, well, I think two things. I'd say One, I think the team has innovated quite a lot. I think if you look at the platform today versus where it's been in the past,

I think, uh, there's a lot to be really excited about. Um, you know, you have you know, in the shift to video, for example, we share this you know, on our earnings that we now have temperas and plus of our engagement it's coming over video, while also still staying really true to what users expect in terms of, you know, bringing together a bunch of really great inspirational images and things that are interested in. So I think it's a good

example of innovating with users. But I think, you know, there's also a lot that's still left to be done, and I think that really is around how do you help people harness that inspiration and intent that they have. One of the great things about interest is that, you know, people aren't just casually browsing. It's not just lean back. People are coming with an intent and a purpose, and they're coming at a part of their journey where I still haven't yet decided, you know, what it is they

want to do or to buy. They may know they're looking to put together a great outfit, or plan a plan a party, or redesign a room, but they're at this moment where they're still trying to figure out, well, what I want in that room, what do I want that outfit to be, or what I want that party

to look like. That's a really unique moment in the user's journey in a place where I think our platform is quite unique and where we have a lot of opportunity to now take that user from not just I could put together that great outfit, where I could put together that great room, but I can go all the way to action and finding the things I want to buy to put that together, or find the places to connect with to go help me take the next step

in that journey. And so I think those are places where there's a lot of forward innovation left to go. And I think you see that continue to resonate with users and with advertisers. I think you're seeing that play out in the ads business where that combination of inspiration and intent is really what's making p interests and must buy for advertisers even as advertisers or shifting, uh you know, how they think about what they need to be doing.

That combination of inspiration intent really stands out. I think makes Pinterests must buy for advertisers as well. Well what do you how do you think your Google and payments experience can play here? I mean, is the biggest opportunity Advertising is the biggest opportunity. E commerce is the dream to be able to see something on Pinterest and buy it or figure out, uh you know where that pillow came from, or how somebody can can make it if they want to make it themselves. Um, well, yes to

each of those. Um. I think how you put those things together really matters. And I think if you look at what I think Pinterest does really well, it is a curated journey where yes, there's a lot of really great AI and mL that's helping put together, um, you know things that when you're trying to figure out what it is that you want to do, whether it's making or doing or buying that We're gonna bring a lot

of really great inspiration together on those things. But it's curated, uh, and it's not just AI and m L figuring those things out. How do you figure out what's the you know, not just what's a really great dress that I want, but what's the right set of accessories to go with it. Well, there's a lot of human curation where people are making those associations on the platform where I think we really stand out and are quite unique in our ability to

bring those things together. So, yes, there's opportunity to take people from the inspiration and to the realization. But I think there's some real superpowers that the Pinterest platform has that are not just AI and m L but the community of penners that are really helping to shape these associate creations of what's a great room going to look like in this aesthetic, what's a really great outfit not just a great you know item, but what's a great outfit and really helps us think about how do we

solve shopping even more than buying. I think the first twenty years of e commerce, we're really solving more for buying, not as much shopping. You know, in the first twenty years is how do I find a thing the cheapest and the fastest. But if you think about the you know, what happened in the physical world, so much more. Shopping was about the journey, walking the bizarre, being inspired, Um, finding the thing you didn't know was there. And that

hasn't been well solved for in the digital world. And I think Pinterest has claimed to that as much or more than anybody else. And we see a lot of that already, and we can take users a lot further down that journey. Elliott recently took a big steak. What have been your communications with them? What are their expectations? Well, you know, we share this on our earnings. Elliott and I both made uh comments on this at our earnings.

You know, we've had a really collaborative dialogue with Elliott. Um. We share a lot of conviction and vision for where the business can oh and so it's been a good engaging dialogue there. Um. And you know, the investor community I've spent a lot of time with in past lives, and that community knows that I really care about making sure we have good engagement with our investors and listening and understanding, just as I want to listen and understand to all of our stakeholders. And so we've had a

good engaging dialogue with Elliott just as well. You know, continue to have good, engaging dialogue with all of our investors, and it's great to have a large, sophisticated investor that has conviction about our business and shares our optimism for the future of Interest Pinterest initially lead the way on, you know, creating a better workplace culture. Former engineer Tracy

Show was really active on the representation of women. But since then the company has been accused of gender discrimination and race discrimination. Employee staged a walkout. Um in your conversations over the last thirty days, what have you learned about, how much has been done? And what is the love to do? Yeah, so I think this is, you know,

these events of a few years ago. I think that the company has made tremendous progress on the easy obviously something Ben and I spent a lot of time talking about, and I spent a lot of time with the board

talking about before joining. And one of the things I loved was being how much um, Ben and the team the board uh all had really leaned in on not just wanting to go take action on these things and get to better places on these things, but to really start to lead the way on these And so as we think about diversity and inclusion as we think about

how we build a really positive community. Uh. One of the things that I think is so inspiring to me about pinterest is that it's it's a very positive place on the Internet where people are going to be inspired and uplifted. It's not a place where people are going to uh shout out their neighbor about their politics or those kinds of things. It's a place where people are

going to be lifted up and inspired. And to say, well, of course, we want to create a community inside the company that Matt is that I think is a great combination, and I think there's been tremendous progress on that. But something where I think for any company that work has never done and there's always more to do. So definitely something that is top of mind for me will be continue to be a priority for me in the team. Pinteress has some prime San Francisco real estate. We were

talking about that in the break. We're looking at some videos of inside the office right now, but in San Francisco there is concerned that this you know, heyday of office culture is over. How are you thinking about that and balancing work from home versus people coming back to the office and reinvigorating an office culture. So I think it's well Number one, it's been great to be in the office with with with Pinterest, with the Pinterest team. Uh.

Great to see people back in the office again and collaborating. Uh. So you know, I think it's really good to see more of that happening. At the same time, we're in a new world that's very different than what it was pre pandemic. And I think hybrid work promobor these are all gonna be really importan and parts of how you

think about building a highly talented and engaged employee base. Uh. And I think there's real opportunities there that you think about what that means in terms of attracting more diverse talent, for example, as you can reach into new geographies or attract people that may be balancing different things uh and

in their work life balance. I think this notion there's no one size fits all, I think is really fantastic in terms of how we not only make sure that we're meeting our team where they are, but that we're opening new doors as to how we attract great talent and where that great talent can come from. Okay, already CEO of interest on the first thirty days. Thank you Bill, appreciate with us. Appreciate it. Come up. Why Apple is putting a software update on hold? That is next. This

is Bloomberg. A few other stories we are watching. The Pentagon has certified SpaceX to use reusable boosters on its Falcon heavy rocket to launch secret spy satellites. This may give spacexit temporary edge and its latest competition with a Bowie lockeyed joint venture. The company's first spy satellite launch with recyclable boosters will take place sometime from October to December.

And the world's largest asset manager is making a significant move into crypto markets, black Rock offering its first ever investment product directly in the bitcoin. The new private Bitcoin trust will track the price of the biggest currency. The firm says it's responding to demand from large institutional clients. Welcome back to Bloomberg Technology. I'm Emily Chang in San Francisco.

Let's take a look at Bumble now tumbling after the dating app company top to revenue estimates for the second quarter but lowered its full your revenue guidance, taking a hit from the war in Ukraine and stiff competition from the likes of Match and Tinder. I want to bring in Schweta Cajuria for more on this. An analyst with ever Core I s I so swet. So why are we seeing Bumble struggle here? I Emily, thanks for having me.

I guess the one of the biggest reasons why Bumbling Bumble is trading off today, it's because expectations were building in into the print. If we think about our Internet coverage universe, bumble Stop has been one of the best performing names year to date in a market that's tough, in a stock market that stuff driven by macro um and and so as we were heading into the print, expectations were for a strong quarter and a strong guide, and it's just giving back some of that. Fundamentally, however,

we don't think much has changed. The guide is a little bit lower, but a lot of it is because of facts and they should probably get a pass on that. Consumer demand is holding up. It seems like they are largely resilient and a little bit of a lower guide is because of some product changes that they are pushing off until Bumble is unique in that it has this other dating app but Do, which is acquired in Europe, which is also under pressure, and then of course there's

a competition from Match and Tinder. One are the biggest challenges from these competing players. The best camp for Bumble, I think is Hinge in terms of the demographics and the overlap across the user base that they have. Um what came out during the earning skull that Whitney, their CEO, mentioned was that Bumble remains the number one downloaded app in their major markets in the US, in the in Canada, and in the UK, and as of July also in Germany,

where Tinder has very large presence. So what that tells us is that they're executing pretty well to the degree that now they are the most downloaded app, implying market share gains across their major markets. And so as we look what is ahead, we would compare Hinge and how that is trending in new your markets, which is also what they're trying to do in international non English speaking markets versus Bumble, and that's going to be the race. So it is a little bit of a bigger scale.

Growing over thirty and year we are growth rate and they are also executing well. A couple other companies you cover. I want to talk to you about Etsy first, reporting better than expected results a couple of weeks weeks ago. Despite this difficult macro environment, why does etc. Seem to be bucking the trend? Etsy is very unique in a lot of ways, not only in the type of items that they sell, less commoditized, the things that you may

not necessarily have a direct comparison with. You can go to Amazon and find the same item elsewhere, but that's not so much the case with Etsy. And so what is really helping Etsy is that they have a very sticky seller base, a seller base that doesn't sell necessarily on Amazon or eBay as much as craft fairs. And these are five employees or lower sellers who are doing it as a side job, but have very talented skills

on the buy side. They have very very sticky buyer base in terms of the retention and the type of the people that come over and over again on Etsy, driving a purchase frequency, and so as that becomes more habitual, that's what sustaining at the The key question for them going forward is in a macro environment where consumers spend is shifting away from discretionary physical goods into discretionary, but travel and services, what happens to etc. Overall growth rate?

And why would they have the right to win? And finally, Peloton earnings coming up in a few days. The rivalry between Peloton its soul cycle has um you know, some call it desperate. It's certainly entertaining. But they're doing a lot of different things to try to uh get get writers and and Serciser's back. Um, you know, what's your take on Peloton under its new leadership and his its chances for a real turnaround. I have confidence in Barry,

then you CEO. The challenge right now that fello down is facing is they have it seems like they have a lot of buyers to put out. Competition is one, but internally and operationally, uh, they have the biggest challenge they have is to is the inventory draw down, which is they have a lot of inventory that they need to sell. They may have overproduced, and they have they have cash issues, which means that they have to show positive free cash flow by the end of that next year.

All right, Schwitzerkjuria abercore I s. I will of course be following Peloton earnings out in the next two days. Thank you now, I want to pivot to Meta and Cheryl Sanmdberg's successor, Javier oliv And, though he may be so different than her, you might call him the anti Cheryl Samberg. Olive and rarely speaks publicly or even posts to Facebook or Instagram, but he has had a hand

in all of Facebook's major competitive battles and acquisitions. While Zuckerberg invented Facebook, it was all of them who helped expand the service to unprecedented size and power. For more on this, I want to bring in Bloomberg's Kurt Waitner, who just did a deep dive on Meta's new CEO. So why would we call him the anti Cheryl Sander Kurt, Well, as you pointed out, his personality is just very different.

In the role he's gonna play, while it's the same title, is going to look a little different too, Right, Cheryl, we see her all the time. She's the best selling author, she's on television, she's out speaking publicly, she's shaking hands with politicians. At least she used to be. Pabira is none of those things, right. He operates behind the scenes,

he's very quiet, he's low key, he's incredibly influential. But even inside his own company, there's some people who don't really know who he is, right, It is a very different personality, and yet here he is stepping into a very similar, the same title, similar job to what Cheryl had leading the business at Meta. And it's an obviously a huge job right now, given everything they're going through.

So what does that mean for Meta culturally? If people inside the company don't really know who he is, does that matter? Well? I think it kind of re establishes, or further establishes Mark Zuckerberg is like the main guy, right because before, even though Mark, I think has been more forward as the face of the company, at the last couple of years, it was still a Mark Zuckerberg and Cheryl Sandberg show, right, I Mean, now all of a sudden you have Mark and and not really anyone else.

I guess we hear from Nick Clegg quite a bit on policy stuff. But I just think that this kind of further establishes zuck as the person who is the face of everything Facebook is doing, not just the product stuff. All right, Well, it'll be certainly interesting to watch this all play out. Kurt Wagner, thank you, as always thinks meantime, CEOs are increasingly turning to social media to share their

feelings about layoffs. In June, the CEO of Clarin took heed after a LinkedIn post included the names and contact details of hundreds of employees that were let go. He says he was trying to get them jobs. Others thought it was a little tone deaf. Now another social media post by the CEO of Hypersocial, Brendan Wallacky about layoffs is going viral. He wrote the employees might still have jobs if he had made better choices, ending the post

with a selfie of him crying. Some found it a little cringe e, but Wallacky embraced the backlash and dubbed himself the crying CEO. Then there was this interview with Redfin CEO Glenn Kellman, who had this to say when I asked about layoffs, we laid off six of our workforce and I'm the one accountable for that. I feel so ashamed about it. I was so blue. I still am, but it's what we had to do to run a

profitable business. And now I think we feel more optimistic about the future, but we're still running on an ice edge. Redfin CEO GluN counting there all right. Coming up, we're gonna take a deep dive into the world of crypto mixers. What are they and how could they be the culprit in the newest money laundering schemes. That's next. This is Bloomberg Time now for our crypto reporting. Today, we're diving

into crypto mixers. It's a service that mixes different streams of potentially identifiable cryptocurrency so that a buyer's account details in history are hidden, therefore making a transaction more anonymous and harder to trace. Here's the catch. While this is great for privacy, it's become a tool for global money

laundering and cybercrime. Recently, the virtual currency mixer Tornado Cash was sanctioned by the U. S. Treasury Department after it was used to launder more than seven billion dollars worth of digital currency since its creation. In let's break it all down and talk about the debate which has spurred in the crypto community. CHA Analysis CEO Michael Groneger is with us, along with Bloomberg's own Katie Greifeld. Thank you

both for joining. So, Michael, do you think the accusation allegation here is fair that um these mixers have become kind of dangerous. Yeah, I would say to a lodge extent, what you've seen over the many years I've been in the crypto space is that the majority of the funds that goes into mixes still a week in age for largely criminal activity. So so to that extent, it's true its course has like a lot of other purposes, you can use a mix of all which is perfectly viable.

But as the entire purpose of a mixers anonymity. It's hot for them to kay I see their customers and avoid criminal activity to go through them. And so Michael administration officials have described Tornado cash as we go to mixer for criminals. Does the data that you have support that? So it supports that North Korea have been a North Korea is known to be one of the biggest problems in the crypto space in terms of organized crime and

sanks innovation. So they would do different hacks stone billions of dollars of crypto over the years, and they go to mix of us Tornado cash. If you look at vansomwhere that's that's traditionally not been using Tornado Cash. It's like other mixes will be used for vensom the laundry, but it's typically not that Tornado cast has been involved with those. Can you paint the bigger picture for us?

How bad has cybercrime actually been this year? So cybercrime has been in decline, So like last year, for example, crypto in general wald transaction volume grow five times over a year, cyber crime doubled. It means that you're now moving from percentages to basis points in countering criminal activity

in the crypto space. At the same time, the numbers are really big, and like just as an example of it, just just this year, we've seen a new kind of hacks, bridges between different block chains getting hacked and more than two billion dollars have been stolen in those and that's not you've been North Korean hackers that's been behind that. So clearly a lot of bad things are happening, and it's big, but in relatively filmed compared to the rest

of activity in crypto, it's really really small. And Michael, this has been such a fascinating story to watch because just a few months ago, Tornado Cash founders, at least one of them, told Bloomberg News that actually, because it's smart contract based, it's written on decided by pre written codes, you can't enforce sanctions against it. Obviously, we know that

the Treasury Department disagrees. But for developers that are out there now writing and developing code, I mean, how can they make sure that what they're creating complies with sanctions. We actually have an auricle US, an OLFACT sanction rable on the blockchain that you can write into your smart contractor and then you are well sanction compliance in the sense that you check for all that that's on O fact and all the transactions that that O fact would capture. However,

that's not the full picture of it. You also need to check for anything else that could be related to that, and yes, then you probably need all other to put other measures in place, and to sort of an existential topic about it feels like a lot of these hacks are happening on cross blockchain bridges, and I'm wondering what about bridges specifically makes them vulnerable. So a bridge is basically a place where you buffer or store funds, but

when you move them between different dock chains. So I might want to buy wrapped bitcoin in the rent projects, and to do that, I deposit bitcoin into a wallet that's basically a hot wallet exitting in the distributed system on the Internet, and then I get something else on

the other side. But now they can sit like billions of dollars in a wallet, and that of course makes it an apart And then I would say when I've been reading through the different white papers for those wallets, typically it's been a very healthy design and something that

would be extremely hard to break into. But last year we saw also a huge growth in crypto and everyone wanted to be first to market, So sometimes the implementations and the actual like basic security around servers and other things that responding wotting these hot wallets have been less good and that's been exploited mainly by by North Korea. Fascinating corner of the crypto universe. Thanks for helping us

explore it. Michael Gronerger, CEO of Chain Analysis, and Bloomberg's own Katie guy Felt appreciated Apples the link it's next major iPad software update, Ipaddle was sixteen by about a month from September to October. Apple made the decision for a number of reasons, including a still buggy Stage Manager multitasking interface, and in order to link the launch closer to the more similar mac os Ventura. Still, it's an

unusual move. Since shifting the launches to the fall in two thousand eleven, Apple has released its new iPhone and iPad software updates simultaneously each year around September. By staggering the releases, users may find some issues around compatibility with cross of ice features like retracting and editing messages and I Message, the new Shared I Cloud photo library, and the new feature for transferring FaceTime calls between iPhones and iPads.

It will also make it a bit harder for developers to launch apps that run on both the iPad and iPhone that required new A P I S and features found across iPad O S sixteen and iOS sixteen. Regardless, it was still of course the right move. Stage Manager on iPad O S sixteen is still quite buggy. I don't find it particularly intuitive, and it's not compatible with most iPads and many third party apps on the App Store.

The feature clearly needs some more polish, and complaints from consumers about stage Manager will now no longer probably overshadow the earlier launch of the iPhone fourteen. Those new iPhones, along with new Apple Walk series eight models are coming in September, alongside iOS sixteen and watch Os nine, which are not delayed. I'm Mark German. This is power On and don't forget. You can subscribe to Mark's weekly power

On newsletter at Bloomberg dot com. Now onto the world of e vs. Electric car maker Rivian cutting its annual earnings forecast, saying it would have a larger than guided loss on inflationary wall was pushing it to tone down its spending plans, even though a posted quarterly sales above expectations and reaffirmed its delivery forecast are at ludlow here

with more so mixed. What's going on? Yeah, it was interesting because you and I foughted this company for a few years and it was the first culture of like meaningful sale. Three four million real companies sells cars. You and I have been talking about how we see them on the road, but you know it's a reality check.

Welcome to how difficult this is. And with inflation in raw materials, particularly fium in the batteries, they're basically saying, actually, we're not going to lose four point seven five billion dollars this year. We're gonna lose five point five billion, and we're actually going to pull back our spending because things are tough out there. And is demand still strong? I mean, as I understand, they've got a super long wit list right, demand is really strong. They are what

we call supply constraint. They can't build the vehicles fast enough relative to the month for them. And what was really interesting on the earnings call, R. J. Scarringe said that he felt the products still had pricing power, which is really interesting. They raised prices in March anyway, which was a bit of a scandal because they raised it for existing reservation holders, but the idea that they could rise even further does show this confidence that people want

this product. To give you an idea, the R one T on your screen, the quad motor version is already at seventy five dollars. Imagine going up from there. It's pretty expensive products. So that did show confidence in the demand is good. What's your set Obviously it's a newer company, but what's your sense of how Rivian is whether in the supply challenges versus a Tesla versus some of the

other companies else. So Ribban doesn't have the scale that Tesla does, and that's part of the problem, you know, scaring as for talking about this on the call. They're having to go to their supplies and say, look, we can do this. Give us the chips in particular that we need look at our shiny factory because those supplies of chips are also supplying many others. Um. I think the ship has been bouncing around. In after hours they were down seven percent and up a few percentage points.

And there is some element of relief because if you remember when Lucid had earnings, they cut their full year production forecast for the second time this year because they couldn't get enough parts. Rivian reaffirmed its guidance to build twenty five thousand this year. So even though it's tough out there, they're at least sticking to what they said they could do. What's your sense of whether this is just growing pains and that will they become a true

competitor to Yeah, they certainly project confidence. You know. They have this very talented CFO, Claire mcdonno, former JP Morgan Wall Street banker, and she talks the CFO talk the numbers, but she does kind of hint that things could improve in the second half of this year. The Inflation Act and the climate that you know, Bill could help them a lot, you know, as Tail wins for demand, not just in their consumer evs. Remember they make the vans for Amazon and their hope is to sell vans to

other fleet operators as well. So growing pains like all the EV makers that you cover, Tesla, Rivian or GM, which one seems best poised to weather gosh well, whether tough environment, all of them. I mean, you know, General Motors and Ford are demonstrating Ford more so that they have the legacy manufacturing experience to make it work right, But they're transitioning from gas to to ev Rivian. All I can say is they have fifteen billion dollars left

on their balance sheet. They are making layoffs, they're cutting costs, penny pinching, and they're acknowledging how what it is. Let's see how it goes. All right, I'd love thank you, And that does it for this edition of Bloomberg Technology. Coming up Friday, we've got the CEO of Poshmark with us. Actually I'll be out ed will be filling informally and see him with Moniche Chandra. And don't forget to check out our podcast wherever you get your podcast. I'm Emily

Chang in San Francisco. This is Bloomberg