From the heart of where innovation, money and power collive
in Silicon Valley and beyond. This is Bloomberg Technology with Emily Jay I'm only changing in San Francisco, and this is Bloomberg Technology coming up of the next hour market malaise, the SMP five hundred and the tech heavy NASDAQ one hundred having their worst weekly run of declines for a decade as US job numbers reinforce the idea that the FED stay in the course on rates plus Doordas shares get caught in the down draft, selling off for another day,
hitting an all time low, this despite strong earnings that show customers still paying for takeaway as we move into our post pandemic world. A conversation with DoorDash CEO Tony Shoe is coming up, and Meta's latest leap into the metaverse is a real world store. We go behind the scenes and the company's first retail location ahead of its grand opening. I want to stick with that volatility that continues to dominate the markets and bring in Mark Mahaney
of ever Car and Mark. Some of these companies actually a strong earnings results, but they're still getting caught up in this down draft. You know, what's your take here, how are you reading through this? Well, okay, Emily, I think my take on it would be the companies that actually had strong earnings actually did trade up, but there were very few of those companies in tech land. So
let me try this. You know, you mentioned door Dash, Door Dash, you know is fulminentals got stronger, but they're not really yet putting up sustained gap earnings, and so the market is not willing to bid up stocks despite what happens on the top line. If they don't have a lot of bottom line cushion, then they don't trade somewhat close to our market multiple. It's gonna be a challenge for pure growth equities like DoorDash. I like doordashes the stock, but in this market it's gonna be challenge.
Airbnb put up really good numbers earlier this week, stock couldn't hold the gains. Uber put up good numbers, Stock couldn't hold the games. The one that could, though, was Booking, and Booking had positive results. But they also have a market multiple app you know, real earnings. Uh, they've had them for a long time, a bulletproof balance sheet, etcetera. So this market is very discriminating and it won't. It won't tolerate growth assets right now. If you're a growth stock,
you better have a good earnings track record. In that case, the stock can trade up. I think that's kind of what's happening. People are just going to the defensive end of growth tech in the Usually there's not too many names in that space. Based on the actions the FED is taking here, how concerned are you about a recession and just a prolonged market meltdown? Well, I don't know.
I'm certainly no expert on that, but I can all my My interpretation is simply that the market on Thursday and Friday said we don't believe the FED can orchestrate a soft landing. That's how I interpret what happened. Maybe the FED can, maybe the FED can't. No expert on that, I think the odd that's not going to be an easy thing to do, but that's what the market is saying. And then as a as an investor in tech stocks, one thing I have to worry about is if there
really is a recession that's not estimated in. It maybe priced in, but it's not estimated in. Almost all consumer tech is cyclical, So if the consumer if they're gonna entering in a recession. You know. Amazon on its earnings call said they hadn't seen any sign of consumer softening. They had a lot of issues in terms of costs, but not in terms of demand. So things could get worse at Amazon, they could get worse at Google, they could get worse at Apple. None of these companies skated
away from a real recession. So that's potentially the other shoe to drop here. That's what the market, the markets fearing that it's pricing it in. And I hope the market is wrong, but but that's the until proven otherwise. I think that's what's gonna hold back tech stocks and
growth equities, you know, for the foreseeable future. I don't know if that's a couple of weeks months, hopefully it's not quarters, but it's that time of that that kind of time frame we also might see be seeing a changing of the guard in terms of what counts as a tech company. Is folk With Robert Knwell of Upholding Portfolio yesterday, he had this to say about Netflix and NATA. Take a listen. Netflix is now being valued like a
cable station. Other investors are looking at Facebook's meta's capital intensity, and saying is this does their future look more like a T and T S than it does Google? And you've seen multiples re rate faster than we've seen in a really long time across these assets because investors not, in our opinion, they've likely moved too far in that direction. But you know, we've got to do our jobs and passed through it and find the good deals here, Mark's
all you're nodding there? Do you agree? I think there's a lot of really good points there. Look, you look at Netflix, It's trade off seventy year to date. There's about five or six someties. I looked at the trade off seventy year to date now with Netflix because they hit a growth wall. This stock was priced as if and I thought it very beginning of the year. I thought they could sustain million subs. You know going forward, say's not the case, and that stock was standing at
a high multiple. So we had to take out the premium that it had, uh and then you had the lower estimates. That's what got me off the Netflix train, you know, earlier this, earlier this year. But yeah, when companies go X hype premium growth, they go X growth, you can have a real reckoning in terms of the stock price if they go x premium growth when they are sitting there with high multiples. That was absolutely the case with Netflix. Now I think there's a lot of
very interesting valuation arguments think be made about Netflix. You've got thirteen dollars in pure gap burnings. What multiple do you want to put on that a market multiple seventeen times, fifteen times, twenty times were in that ballpark. So now there's a lot of valuation support for the name Facebook. I think it's different. And by the way, I really like Facebook here. I think the stock can rerate. I
think the multiple can go higher. I think this is going to recover to have being a premium growth name. But I understand it's very controversial here. I like it. It's also got a lot of cash on the balance sheet. And you also, of course cover Twitter, which has got its own story going on with this Elon Musk takeover. He's lined up this long list of unusual investors to back his bid to buy Twitter, from Larry Ellison to
a Saudi prince to the cryptocurrency firm Finance. He also was tweeting earlier today some more incess to what he plans to do with Twitter that'll be focusing on hardcore software engineering, design, information security, server hardware. What do you make of that? Well, I, um, I'm sorry I didn't see his tweets earlier today, But if he's started to develop a more detailed plan for what he wants to
do with the asset, I think that's great. Um. You know, I think there's been a product innovation problem with Twitter for I don't know the better part of five, six, seven years, and so if somebody, if if it takes new management team, takes a new owner to shake it up and to really improve it, I think that's gonna
be great for all of us. I do worry one thing, which is all the money for Twitter comes really from marketers and advertisers, and I haven't heard anybody talk about how they're going to improve the tools for them because they're the ones who paid the bills. At the end of the day. I don't think you're gonna make that much money if you try to charge a subscription for for for Twitter. So I hope he can improve Twitter as a as a service as a user, right, I
think I want that. As an investor, I don't think there's much to do with Twitter here, I think the steel is going to go through. I think it's largely closed, but but maybe we'll see it to get into public markets in a few years. That's what I heard that he intends to do. If he can come out with a better asset, the market will be very interested in Twitter all right. We'll always appreciate your insights here and helping us wrap a really painful week for a lot
of investors. Mark Mahaney of Evercore, Thank you. The music is stopping for some pandemic darlings like Peloton and Netflix's people get back out into the world to live their lives. But it is still humming so far for door Dash revenue beating analysts estimates and a strong outlook ahead with people still ordering more and more food for delivery. But how long does that keep up with inflation and a
potential recession bearing down. I want to bring in door Dos CEO Tony Shoe for more on all of this, and Tony, it's a tough mark it to be in now. Despite your strong results, we saw shares take a leg down. You know, what is your takeaway from how investors are
evaluating these results? Well, I think it's certainly a tough market out there, as you acknowledge, but you know, at the same time at DoorDash, we're focused on the fundamentals, and the fundamentals for doordesh are incredibly strong, as you saw, you know, with this for most recent quarter, we announced all time highs in our monthly active users or dash has subscribers, as well as order frequency across cohorts. We're continuing to build into new categories beyond restaurants and two grocery,
convenience retail. We're launching more than just you know, the United States as a global business, and we're also making tremendous progress on building our platform in which we're helping physical businesses become digital powerhouses in addition to the local marketplace that we've been building. So in times like these, especially, um, you know, what I tell our teams is to focus on,
you know, the fundamentals and keep building the business. Investors seem to really be punishing or at least questioning growth stocks, and I know some are wondering, oh, was it because of a Macron that DoorDash saw this boost in the last quarter. Is not going to keep up quarter after quarter after quarter. How do you respond to that well, it's been two years now or maybe a little over that um in during the pandemic season, and we've continued
to see growth. I mean, our US restaurants business has grown two fifty percent over the last couple of years. We've gained fourteen points of absolute share in the category. And I think what you've seen, whether it was you know, early on in the pandemic, is certain states opened up maybe a little bit ahead of others or now where everyone thankfully or finally getting back into their normal lives
of seeing their friends and family in person. It's that people, you know, even though they can they eat out and celebrate, they're continuing to order delivery. I mean, that's why you're seeing, you know, the all time highs that we've seen in the business. In addition to that, we've also increased our profitability on top of it already profitable business um altogether, and so you know, we've seen a lot of strength in the business, both in terms of the demand but
also in terms of our bottom line. Consumers are under pressure though inflation is rising, gas prices are rising. These are factors beyond your control. How are you thinking about the macroeconomic environment ahead? I mean, are you just kind
of preparing for more uncertainty. Well, we've been studying inflation pretty carefully now for the past four or six quarters, because I think it happened, actually, or the growth of inflation, I should say, you know, occurred maybe a bit more sharply than some had anticipated, and it certainly continues to be a real concern. Um. So for us, the focus
is on taking care of all the audiences. You know, obviously we can't control the rate of change of inflation, but we can control um you know what we do for dashers, making sure that we're giving tem percent cash back on fuel expenses, making sure that we are paying bonuses for longer distances driven, making sure that we're working with merchants to find in new ways to grow as they're dealing with both labor shortages as well as inflationary pressures.
And we can do that because we have a robust restaurants business for consumer demand is still very resilient, which gives us the ability to reinvest those profits into absorbing any costs from inflation so that consumers don't have to bear any of that burden. We did see a number of analysts cut price targets on DoorDash this morning, and I wonder how tight the labor market is for you in particular. I mean, because it's not just you know,
restaurants that need labor. It's it's DoorDash and Uber and Left and Domino's Pizza that are fighting for for drivers. Well, we you know, we haven't actually seen any challenges in getting drivers on the road. In fact, even before the recent rises and fuel expenses or the sharp uptick I should say in fuel expenses, we had plenty of drivers on the road. And that's because structurally we have a pool of drivers that that is just much larger than
other serve is like right sharing. Um, you know, of the dashers on door Dash, of the three million plus that come to our platform and and and does deliveries on a quarterly basis, them deliver more fewer than ten hours a week. The average dasher only completes about four
hours of work every week. And and so when you think about it from that context, where it's truly part time and supplemental income, and you compare to something like right sharing, which is more full time, it's just orders of magnitude larger in terms of the base of drivers we can address and for those reasons, we actually haven't seen any of those pressures of getting drivers on the road.
But that said, we do recognize that inflation is very real, and that's why we decided to invest in those dasher programs to make sure that their earnings would not be impacted. Interesting, Well, on one hand, you're hearing Lifts say they're going to have to invest significantly to incentivize drivers. We're saying they don't have to. What they are making some changes to the app, more transparency to keep those drivers coming back.
And I wonder are you going to prioritize the courier app experience and how if your competitors are trying to step up those levers. Well, we don't really compete against right sharing for drivers. I mean nine cent of drivers that we've surveyed, you know, on the door Dash platform have no interest in um, you know, driving other people. Um. They just prefer to do deliveries. I mean, if you think about it, I mean, the two user basis couldn't be you know, further apart in terms of how they
self select which platforms to work on. Um if what about eight? What about Instacart? But you know, Dominoes. Sure sure, sure sure. I mean, as the largest platform UM in the US that you know, provides more work opportunities on a daily basis across more geographies. Um, we're just the first consideration for most of these workers. I mean we're always going to you know, your question about investing the
Dasher app. Of course, we're always investing, you know, behind that experience to make sure that it's lower friction UM to earn whenever you want, wherever you want, and to do it, you know, with consistent expectations of what you will learn when you are on the road because the work is so part time. Investors are also suggesting we're going to see a lot more consolidation in this space. And given that door Dash is the big player in this market, that makes you potentially a prime acquirer. We
saw you buy volt for example. Are we going to see you do more deals? Are you looking for more deals? And if so, in what areas well? The bar for M and A is is very high for us at Doorash, and that's because we really respect how difficult it is to actually do it really well. UM, So for us, two things have to be true. Number one, it certainly has to be a creative to the business. Number two, it also has to be creative to the management bandwidth
that we have at DoorDash. I mean, we're trying to build the largest local commerce business globally, so we have a lot of work on our plate, so we have to make sure that there can't be any distractions. That's entirely focused. That's why you know volt with such a perfect example. You know, Vulture only adds to our international
global footprint, doubling almost our addressable market. But the way in which they build their business, the culture around building the best product, making sure that they do it in a capital efficient way that aligns very well with how we do things. That dortsh and that was a perfect example of when M and A made sense. All right, well, we'll be watching your next moves there, do you know, and co founder Tony Schu always going to have you thank you for taking the time. Monday is opening day
for Meta's first ever physical store. It is a brick and mortar bet on the metaverse. Facebook's parent Hoping hardware plays a central role in its virtual and augmented reality strategy. Bloomberg's at Ludlow got a behind the scenes look at the store in Burlingame, California. If you needed any more proof that Meta is going cool in on Web three, then look no further. Come take a look inside the company's first retail store where VR and are hardware, or
at the forefront as the company charges into the Metaverse. Yes, this is a Metaverse store in the real world. This store is the size of a small house, less than six square feet opening it is a pretty gutsy move for Meta, considering other tech giants have tried and failed.
Microsoft shut down its store locations permanently to focus on online sales, and earlier this year, Amazon announced it was closing its physical bookstores, Amazon four Star locations, and more pop up kiosks so that the company could better focus on its grocery business. So why does Meta think it
will be more successful than its peers? Well, CEO Mark Zuckerberg said quote the best way to understand virtual reality is to experience it, and he believes that the metaverse is the next major computing revolution after the invention of cell phones. Here we have metas virtual reality goggles, the quest to which sell for about two are the RayBan stories. Hold tap for a photo, single tap, start filming, double tap you get some music going volume up, volume down.
Meta wants this store to be a bridge that connects users to the metaverse, but that means that it has to rely on users actually being interested in the metaverse. That might not be so hard. One out of the eleven point to million A R and VR units sold worldwide were metas quest two. So Meta does have a large market share, but can it keep up the moment to and will stores like this one help the company
expand its metaverse footprint. Bloomberg's ad Ludlow there at The store opens next week, and here are some other stories we are following. Peloton still trying to turn its business around. According to Bloomberg sources, the fitness company trying to sell a stake of about hoping to find a big name corporation or a private equity firm that could help validate the business with its investment. Peloton has been contacting potential buyers,
but the process is still at an early stage. Palant Here meantime, just struck a ten million pound contract that's twelve and a half million dollars with the UK's Ministry of Defense. The data analytics company will offer support with its Foundry platform which lets users cut costs by automating work and reducing data processing time. This is the firm's largest contract to date with the high profile department. Welcome back to Bone More Technology and Emily Check in San Francisco.
Let's stay on Zillo and welcome back Spencer Raskov, one of Zilla's co founders who ran the company for more than a decade. He is also the co founder of S and Sonny, a venture firm based in l A. So I want your view, Spencer on the big market picture. But let's start with the housing market and how all of these trends, rising inflation, rising rates for the foreseeable future, how that's going to bear down on the housing market. Well,
what's driving home price appreciation is limited supply. So for most decades, starting in the sixties, we had twenty million new homes be built. In the decade after the financial crisis of two thousand eight, we only had ten million homes that were built, and so there's just a lot of missing supply and that's what's driven this huge uptake and home price appreciation over the last five or so years. So as mortgage rates have gone up and and they're
gonna they still have further to go. Clearly, homebuyers are gonna have to trade down to slightly lower price points. But most of the data that I've seen around housing still predicts strong housing appreciation, not as high as it was, not uh ten, but probably five to ten percent home price appreciation. Now, the stocks that underlie this, like Zillo,
that's a bit of a whole other question. And there's obviously been a risk off trade in the public markets away from growth and more towards profitability, and that's hurting companies like Zello and many other prop tech companies as well. So I just want to lean around this because there's a lot of people trying to get into the market who think they just can't right now if they didn't
buy something first ten years ago. You're saying, prices are still gonna go up, and there's still a lack of supply, so there's still gonna be competition. Even though we're we're seeing forty year inflation and rates going up and people's portfolios are getting pummeled, we're still only at about one to two months supply of housing, which is amazing. I mean, a normal's market would have six months supply of homes for sale, So homes there's just are not enough homes
for sale. We need home builders to build more homes if you want this supply demand and balance to to come back, uh, you know, into balance. So if if home prices are still going to keep going up in most major markets, not as quickly as they were, but home prices are in fact still appreciating. So let's talk about the sell off. How much worse does it get? Has a bubble popped? Is this you know what we're going to see for you know, the next several years. Well,
it's a bit of a blood blath out there. Obviously, public market investors and viewers can see in the public markets just how bad it is in among public companies. I can give you a little insight into what's happening in the private markets, and unfortunately it's pretty ugly there as well. So the closer you are to being public, the harder ago of it one will have. So companies that were already in the I P O window hoping to go public this year, that window is shut as
ones are being pulled. Those companies are not getting public anytime soon. Late stage growth companies are pulling back. Early stage companies are getting rounds done. I mean, there's a real venture chill a foot, unfortunately, and I'm seeing companies across all of the private sec all the venture funded companies that I'm involved in, are pulling back in different ways. So many of them are tightening headcount, many of them
are cutting marketing, most of them are hunkering down. Some of them are doing inside rounds because they can't raise outside rounds from new investors. So it's amazing how quickly the weather has turned, and just really a couple of months, we've gone from an incredibly ebulent market to one that's extremely challenged. So how long are they going to hunger down for? How long are they going to have to
be hiding well? I had one investment banker telling me the other day that if you look back over the last twenty years, the I p O window has only ever been closed for about six months, and we're already in month four of closure. So that bodes well for reopening of the I p O market sometime later this year. But private companies, venture funded companies, they're just assuming that
this year is kind of a write off. I mean, every company I'm involved in, I've I've said you should assume you should operate your business assuming you'll not be able to raise a venture around this year. That's how that's how conservative, at least at least my companies are being so I think this could last for for quite
a while. It's this risk off trade. As interest rates ticked up, public market and private market investors are prioritizing profitability over growth, and that's increased the cost of capital. It's made it difficult for high growth companies to raise money, and they're all pulling back as a result. Sorry to be the bearer of bad news on a Friday afternoon. Well,
given it to us straight, we appreciate it. There is one person out there who seems to have no trouble raising money, and that is Elon Musk, who has lined up a long list of investors to help him take over Twitter. He was tweeting earlier some of his ideas, more ideas for how he plans to change the company those there's still a lot of unknowns. You're a big prolific tweeter, what do you think about Elon Musk owning this company? Well, I was surprised, to be honest, and
I tweeted as such. I was surprised at this deal got done, although it actually hasn't gotten done yet, so so we'll see. But um, as a Twitter user, I'm sort of excited to see what Elon's products insights are going to bring to the product, the product that I've used for so long and so many of us love, so it should be interesting to watch. Um. I am a little surprised that he's gotten so much financing lined up, given that he has publicly stated that he's not going
to try to run this like a normal business. He's not trying to maximize profit. He doesn't he's not even really interested in a financial return, and yet he is still convinced others to invest alongside him. This just goes to show how much amazing magic and pixie Dust Elon Musk has uh associated with him, that he's able to get people to co invest, even when he says it's
an unconventional investment. Um. You know, I I do worry as a Twitter user that the company has made great strides to reduce spam, reduced bullying, and a lot of the discussion about how we're going to restore free speech to with Twitter On Twitter, it sounds really good, but with free speech comes a lot of spam, a lot of harassment, and a lot of bullying, and those are things that Twitter management has worked very hard to reduce
over the last couple of years. So I worry about a possible step back in that in that regard, but benefit of the doubt has to go to one of the greatest entrepreners of all time, who has created so many extraordinary companies, and obviously he uses the product as much as anybody, So it'll be amazing to watch. There'll be plenty for for you to talk about and for me to tweet about as as Elon takes this company from it. What do you think about the role of Jack Dorsey here and and the the future of a
decentralized Twitter. Is that a good idea? I'm not really sure what that means, to be perfectly candid, Um, I mean, I I there's talk about open sourcing the algorithm and providing more transparency, but I don't really know what that means to the user, and I don't know how it affects the business model. Um. You know, this company has always had it's always been a little dysfunctional right at
the board level of the management level. It's always had challenges, It's always punched of its weight in terms of media attention and consumer interest. And so you know, maybe out of the public eye, maybe private for a couple of years, it'll be able to stabilize its leadership team, stabilize its board, focus on the product, and then hopefully come back out the other side and improved company and hopefully an improved product.
All right, Spencer Rascoff, always appreciate your thoughts here on the show, co founder of Zillo and seventy and Sonny is such a great need for a venture firm given today's weather. Thank you. It is time now for our crypto report and bitcoin and other cryptocurrencies taking a beating along with the rest of tech in this cell often works. Katie Greifeld here with the big picture, Katie, what a week?
What a week? It was an especially bad week four risk assets, an especially bad week for bitcoin in particular. Actually didn't start out so bad. We actually rallied on Tuesday, but you add in Thursday's nearly nine percent drop in bitcoin, such a end the week with losses of nearly six percent. It's training in about thirty six thousand dollars right now, about a hair below at one point it hit forty dollars this week. That is a distant memory at this point, Emily.
But a big reason why we saw bitcoin performs so poorly is because it really trades like a tech sock more than anything else. Bitcoin's correlation with the NASSEQ one it's currently at its strongest level in data going back to at least, which really tells you something. As you can see in that chart there, that relationship has really strengthened in the past couple of months, in the past couple of weeks even, and now you have tech socks
really under pressure from rising rates. Bitcoin is two. And what's interesting in this cell off, this tech cell off, this crypto sell off. You have Ether. It's been a relative haven, still down for the week about four point five percent, but obviously less than Bitcoin. And that's interesting because Bitcoin is built is digital gold. It's clearly not acting as a haven lately, though, and as you can see or Ether, rather it's outperformed not just this week
but over the past few years. At this point, Emily, you're not safe anywhere, are you. I want to ask you about another story, and that is an Nvidia agreeing to pay a five and a half million dollar fine is part of a settlement with the SEC over crypto mining. What do we know about this? This is fascinating. So it basically boils down to the video allegations that in the video failed to adequately disclose just how much of
its revenue comes from demand from crypto minders. So the SEC said that for two consecutive quarters in the video didn't make clear that demand from crypto minors in particular made up a significant part of its sales increase for graphics processing units. In the video of course settled that case. They didn't admit wrongdoing, but they did pay that five
point five million dollar fine. And this is fascinating, and because if you think about Ethereum, it's moving away from proof of work mining to proof of steak and what that really means is that it's no longer going to require those graphics cards. It's much less intensive. And already in December, the video had warned that it's seen revenue from crypto mining dropped by over compared to the previous
few quarters. And Ethereum hasn't even moved to this proof of state mining process yet that's still yet to come further this year but already the video under pressure really reminded me of the conversation we had yesterday about how these movements in the crypto market they affect the equities of stocks and the companies that are involved just broadly in the crypto sphere. So, Katie, what aren't going to be watching when the markets open next week and of
course crypto trades through the weekend. It's a great question. Honestly, I'm most interesting interested in this dynamic between Ethereum and Bitcoin. Again, Bitcoin, it's the largest cryptocurrency out there, it's supposed to be the most liquid, the most stable. This haven the area clearly giving it a run for its money. We'll see if this out performance can continue, both on the upside and the downside. All right, Bloomberg's Katie Greifeld, thank you
for wrapping all that up for us. We saw tech stocks fall for the fifth straight week, marking the sector's worst weekly streak since two thousand and twelve. I'm joined out by Tuilio CEO Jeff Lawson. The company just reported it's earnings results and better than expected, but still they couldn't escape the sell off either. Jeff, thank you so much for joining us. So let's put Tuilio aside for the moment. I really want to get your view on
the broader picture of what's happening in the markets here. Inflation, macroeconomics,
certain uncertainty, rising rates. How are you reading all of this? Well, you know, the way I look at it is, you know, we're seeing the end of a long era of free money that our economy and the global economy has been in, you know, going back all the way to September eleven and then refreshed again during the Financial crisis and then with COVID, and so you know, investorors are obviously reacting to and the whole world reacting to the government's reacting to.
You know what the implications of that are to now for the really almost the first time in twenty years, like managing inflation versus interest rates, and so, yeah, a lot of rescent going on. You know, we're not happy about obviously what's been happening with tech stocks or our stock but at the same time, you know, new world that that we're entering. And I just think about the fundamental value proposition that Toyo provides, you know, to our customers.
And we're now in three and a half billion dollar revenue run rate. Business growing incredibly fast, and so yeah, we just keep our eye on the ball, which is serving our customers. And I think that's what a lot of companies are probably just doing there in this time. You say you're planning to deliver thirty percent more than organic growth over the next couple of years, does not
still happen if we go into a recession. Well, we just reconfirmed our guidance that we are going to deliver thirty percent annual organic growth through two and we started that guidance um UH in twenty uh and so we have yet again reconfirmed it as well as last quarter we added that we intend to be profitable for the fiscal year for twenty three and uh and so we
just reconfirmed both of those Now. Now, luck if the whole world hits some you know, the worst case scenario of a macro environment, you know, who knows what could happen in that world. But from every indicator that we see today, that that gave us a reason to reconfirm both of those points of titants on our call this week. So talk to us more about how things like messaging and other new features are evolving. So you keep those customers,
new customers signing up, and sales coming in. Yeah, we have almost two hundred and seventy thousand companies that use Tilio to engage with their customers. And when you think about what's been happening in the long trend of last twenty years of digital transformation, more and more companies, businesses are moving online and they're seeing more more digital transactions. That means they meet their customers in this digital world.
And we provide the tools and the communications channels and now the data infrastructure to allow companies to know their customers based on all the data that they see about their customers first party data, and then take that understanding of their customer and use it to engage with those customers. And engagement is essentially the act of personalizing all of your interactions, making every interaction relevant. It's the act of
actually buying relevant ads to target your customers. It's the act of tiving a direct channel of conversation with your customer. And companies who do this well see outsized performance in
their revenue. In fact, we recently did a survey of three thousand different executives and a wide variety of companies all around the Globe, and we found that those companies that invested in customer engagement, which is building that digital relationship with their customers, on average, saw seventy revenue growth last year. And so that just goes to show you that when you build a strong relationship with your customer using all this amazing technology that is out there that
Tilio powers, well, it has outside returns in terms of revenue. Now, I want to ask you about a slightly different topic and the leak of the draft opinion from the Supreme Court on Where versus Wade. Tuilio came out last year opposing the Texas anti abortion law, and I'm I'm just curious for your reaction to this league what you're telling employees. Well, you know, I think it is it is a dark day to be removing fundamental rights from basically half of
our population. And we think it is a woman's right to choose her health care decisions for her body. We're going to support our employees in their need to to get the health care options that they need. And ultimately, we think that healthcare is a personal choice and that should be a choice that's left up to the individual. And how do you think about this as a business leader,
because there certainly are customers who don't necessarily agree with you. Absolutely, it's a very tough issue and it is it is an issue that science has not answered the question of,
like when does life begin? And so therefore it becomes a matter of beliefs, and there are religious beliefs, personal beliefs, etcetera involved in this decision, which makes it a very hard issue for leaders, um like myself or I need to to actually kind of you know, a pine on and so in some ways it's like stop asking me a man just because I'm a CEO what I think
about it? Like what I what I ultimately can say is I believe that women should have the choice to to to make decisions health care decisions about their own bodies. And you know, and that's not an opinion of when life begins and all that. Science doesn't know the answer. Nobody knows the answer to that. But what I do believe is that women should have the ability to make those decisions for themselves. Fair Enough, I want to ask you about another hard issue, and that is of free speech.
You in the past, for example, the Pittsburgh synagogue shooting, you called on social media to do a better job cracking down on hate and misinformation. What do you think about Twitter being owned by Elon Musk given that his
big thing quote unquote free speech. Well, I do think that reality like free speech in a broad sense is a nice thing to rally around, but then you do right into reality, which is that when people say things or do things that violate the community standards, and every community has standards online, offline, you name it, um, what are you gonna do? And that there's business consequences, like if users stop liking the community of of of social media network, they'll stop using it. That is very real
business impacts. And so the way I thought about, you know, free speech, whether free speech is a legal doctrine that governs the government's um uh imposition of things you can say or can't say, It has nothing to do with what private companies um actually how they drive their terms
of service and how a company builds its community. And so the very real business question will be is if some of those engagement, if some of those rules get loosened, or you know, there is more community breaking type behavior on Twitter, people should vote with their feet. And look, you can go to the metaverse, you can go to the muskie verse, you can go to the snappy verse,
you can go to the insta verse, whatever. Like, There's a lot of options out there, um and so, and people can and will vote with how they use the service. And ultimately it's a business and uh that is probably going to drive a lot of the decisions that that that owners will make. That was quite an epic way to end this show on a Friday afternoon. Jeff Lawson, thank you for waiting through some very thorny issues with the CEO of Toilio. I was good to have you on the show.