From the heart of where innovation, money and power Colli in Silicon Valley and beyond. This is Bloomberg Technology with Emily jay I. Remember we check at San Francisco and this is Bloomberg Technology coming up the next hour. Twitter is shrinking Elon Musk, laying off half the workforce around thirty seven h people as he restructures the entire company. Meantime, brands continue to mull ads on Twitter, and Musk is doing away with policies like a once a month rest day and war plus self driving technology under the regulatory microscope. As we ached closer to a future with driverless cars, we talked about the challenging road ahead with Aurora, CEO of Chris Urmson, and another tough day for Peloton after revenue fell way short of expectations. Still, CEO Barry McCarthy is confident to turnaround plan will work sooner than expected. We will discuss all of that in a moment, but first I want to dig into those layoffs that Bloomberg has learned will happen at Twitter. Musk planning to lay off about thirty seven hundred people, half the current workforce. Our sources telling us he plans to tell the workers who will be affected on Friday. Bloomberg's Kurt Wagner of course critical along with ed to our reporting on all of these latest Twitter developments. Kurt, where are these jobs going to come from? What do we know? Yeah? I mean this is company wide. Um, it's not necessarily going to be in any particular area. Well, the one thing that Ellen has kind of stressed that the product and engineering seemed to be where his focuses. So it's possible that you know, that might be a little bit less impacted than something like, um, you know, trust and safety or policy legal things like that. But you know, this is a part of his strategy to try and get the company into a better financial situation. Right, he paid forty four billion dollars for Twitter. They now have these huge debt payments that they're going to have to start paying off for these interest payments. Um, and you know part of his plan is let's cut head count. So how are Twitter employees feeling right now? I mean, the acts is going to come down on Friday, and nobody knows if they're going to be cut yet. That's exactly right. And they're not only that, Emily, they haven't heard from Elon Musk at all since the deal clothes, they haven't heard from any other leadership, right. Everyone's kind of talking with their managers, but there's been no company wide messaging at all. All of the C suite um, you know, CEO, CMO, CFO, all of those folks were fired last week or early this week. So if you're employee at Twitter, you're getting your information from places like Bloomberg or from other media outlets, right, and that's where you're finding out what's happening at your own company. And so that's quite unsettling for a lot of people, especially when you're sitting around wondering, am I going to be employed by the end of the week. So this is a stressful time internally, to say the least. Um and a lot of employees we're seeing are sort of looking out for each other, trying to give best tips on what happens when you get laid off. Hey, let let me make references for you, that kind of thing. You know, they're trying to to take care of each other because the company doesn't seem to be doing it for them. Meantime, we've just got this headline from Dow Jones at a number of pretty prominent advertisers are pausing ads on Twitter. I mean, do you think that this is going to become a bigger thing? I mean, we talked about the potential for a boycott. Does it get to that, Well, this is what I think we're talking about yesterday, and I think that the chance of a boycott not only seems possible, but I do think it seems like a really big deal. And again, it's because the time we saw this happen with Facebook, all the key executives that the todd the Sheryl Sandberg's and those at the top of the company on the business side, they went out and they did damage control for days, right, And we're just not going to see that at Twitter because all the people at the top of a company are gone. And so when you have these big advertisers, and Twitter is very much a relationship driven advertising business because they don't have that, you know, very intimate direct response type stuff. When you have these big advertisers really being cautious or putting things on pause, you don't have the people inside of Twitter to necessarily go to them and reassure them like some of these other big ad companies might. So I think it's a I think it's a dangerous thing that's happening here. And tell us a little bit about what we know about how decisions are being made on the inside, who's making the decisions, and how things that are being communicated are actually being communicated. Yeah, well, we know that Ellen is making the decisions, right, and the best I can I can tell is that a lot of things are being done very quickly and sort of haphazardly. Right, I mean, even this change, they're going to raise the price of their subscription product to eight dollars, and they're going to add some new features, including the blue check verification. You know, we saw him sort of like work shopping this publicly on Twitter, right, He's like tweeting, Hey, would you pay for this? How much would you pay? What features would you want? And then all of a sudden, he just announced it the next day. And so we're seeing there's a very small group of folks, including some venture capitalists, who are sort of advising him here. But really it feels like Ellen is sort of um, you know, kind of making this up as he goes along. As I mentioned, there's not a lot of um messaging coming from the top of the company at all. So unless you're in a particular group working on a specific problem for him, you don't really know what's happening at the company. All right, Kurt, and I'll let you get back to work in the phone signal, your Twitter, d M s and all the ways you're breaking all this news. Bloomberg's Kurt Wagner, thank you for the update. Last month, a venture capital firm CRV announced one and a half billion dollars and funding across two funds, which means more dry powder to take advantage of low value tions. But how are firms thinking about how to deploy all that cash and potentially very long downturn. Kristan Baker Spone is a general partner at CRV and joins me now. Kristen, how is crvs strategy evolving in the midst of this downturn? What are you all talking about around the partner table. Around the partner table, we're talking about how we're continuing to play to our strengths. CRV has been in business for over fifty two years and focused on backing founders at the early stages. We raised one point five billion dollars, as you mentioned, to continue to do that and invested the earliest stages, partnering with founders that are building game changing companies. So are you waiting for valuations to come down? And are you finding enough places to put that cash given so many companies out there are struggling. We're seeing valuations compressed across the board. You even just mentioned some books out in the public markets that are seeing valuations compress, and we're seeing that play out again across the private sector as well. That being said, at the early stages, we're backing founders that are in this journey for the long haul. And as someone who focuses on health tech, healthcare isn't completely recession proof, but it's definitely a defensive place to be in the market where there's continued to be spend an innovation and technology adoption. So let's talk about health tech because I know that's your focus. Is it as cool as it was in the middle of the pandemic or not? Well, I continue to think it's very cool. That being said, I think that there was a really interesting we had a watershed moment during the pandemic where there were a number of trends that were already happening across whether it's consumerism and healthcare adoption of technology bringing AI into healthcare delivery that the pandemic helped unlock, and that activation energy and that pent up demand was released. Now as the market has cooled, we're continuing to see those trends play out, but at a much more at a much more um reasonable pay ace of technology adoption. A few companies that a highlight, you know, one being a company Wheel. You just had the logo up on the screen. Weigel is in the health, telehealth and marketplace space where it's helping unlock telehealth for large tech companies, for large providers as well as for companies that are trying to put great care in the hands of consumers like you and me. So what is it about health tech that you know specifically? It's like to you. We have Apple coming into this, Google, Amazon trying to get in to health tech. Is that a threat that big tech giants want in or is that an opportunity? I think it's an opportunity. We're seeing a number of large players come into the space. You mentioned Amazon buying one Medical. We're hearing rumors of Apple getting into the health insurance game. We're seeing Google continue to play in the data space. I think it's a recognition of how technology has been in healthcare bit of a laggered into story um and there's so much opportunity to bring healthcare into the hands of not only clinicians but also individuals like you and me, in order to bring us the care that we need when we need it, so many of us. You know, for the very first time during the pandemic, did at home Diagnostics had our first telehealth visit. But there's also a huge opportunity to drive better efficiency in the care delivery system across the board. Meantime, more broadly, the world is falling apart and Silicon Valley is kind of crumbling. We've seen layoffs across the board. We just talked about thirty people about to lose their jobs at Twitter. Does this how broader ramifications on the startup ecosystem. They're definitely broad our immifications across the startup ecosystem, and that's why you know the breadth and depth of the firm like CRV, where we've partnered at the early stage, but also seeing a number of different ups and downs in the market. And this is where you know, we're seeing leaders make really tough decisions and the leaders are that are making tough decisions, are focusing not just on growth. Growth is necessary but not sufficient. How are they focusing and investing in their companies and in the future R and D as well as the growth to drive scalable business models and build the game changing companies that were excited to continue to back. So what advice are you giving startup founders right now given these tough market conditions. As a board member and a partner to many of the founders that I work with, I'm trying to help them see around corners and see what's coming down the pike. And I think one of the key things that founders are focusing on is not just how can they have clear eyes and continue to focus on their business but also make the tough decisions. You know, oftentimes, uh, it can be it can be tempting to continue to want to see the world play out. But what I see are those folks that are those founders that are making the tough decisions with clear eyes, with advice from their executive teams as well as their investor partners, are going to be the ones that cannot just weather the storm, but hopefully emerge even stronger. So talk to me a little bit then about the founders you think that will or can be successful at a time like this. I mean people are calling this, you know, dot com bust two point oh. I mean this could go down in the history books as a tectonic shift in you know, the industry. You know, the companies that survive and the companies that do not. We continue to focus on backing not only passionate founders, but Emily, you just mentioned how tough the times are. The word that comes to mind is grit. Are you founders and companies that can be gritty and not just as I mentioned, move through this time, but potentially emerge stronger. I also look for founders that are beacons, that are beacons for talent, that will continue to be beacons for customers and for capital even in the tough times. I think we're going to continue to see investment in really high quality teams and really high quality businesses. Those aren't going away. Um, what we're seeing is that flight towards that really high quality where there's growth but also efficient growth to building these companies. And I know you know you obviously you also worked in banking. You helped take some companies public. What is your sense of how long this downturn last? You know, how long are we in for here? Is it six months? Is it eighteen? Is it three years? Well, you know, I am continuing to be continuously optimistic that will will make our way through. That being said, planning for a bit of a stormy weather ahead. So, um, you know, your guess is as good as mine in terms of how long this will last. But I think we're continuing to invest in companies and work with founders that are seeing not just a brightness on the horizon, but hopefully continuing to work through these storms. Um, my guess is we're going to be in this for a considerable amount of time, and so having folks that are going to continue to focus on the fundamentals of their business, keep the main thing, the main thing, and build towards the future. Alright, keep the main thing the main thing. We'll remember that. Kristin Baker's phone, general partner at CRV, Thank you so much for stopping by. All Right, coming up, Peloton continuing to struggle, but the CEO still upbeat. We'll explain why next. This is Bloomberg Peloton rebounding after tumbling earlier with the company posting a weaker forecast than expected, even as the CEO declared it's meeting its own timeline for turning the fitness company around. Joining us now Bloomberg, Smart German Mark Uh talk to us about what's going on here. Investors clearly don't like what they see. Yeah, we got this morning was the definition of a mixed earnings report or PR putting its fingerprints over some numbers here. So if you look at the numbers, things are not so great. You're seeing a revenue forecasts as a client about thirty seven percent UH in the current quarter. That's the second fiscal quarter for Peloton. On the other hand, you have a letter from Barry McCarthy, Peloton CEO, saying that the ship is starting to turn. That is my impression as well. You are seeing some positive direction happening in some of these numbers. Gross margins have improved over the past couple quarters. Free cash flow has improved, but we don't like our the revenue numbers, specifically for hardware, they're hard hardware revenue numbers continue to fall while their subscription numbers continue to climb. The good news there is you see usages continuing. Churn is very low. Subscriptions are continuing, but people are not buying the hardware. To me, this raises the question why is Peloton in the hardware business at all? Right? Why not completely pivot the company away to putting its tablet on third party bikes? As we know, Peloton probably has the best content, probably has the best software in the hardware bike in treadmill space. Why not us get rid of your failing hardware business and make a really big subscription business. So I think that's where the company may eventually go. So clearly some really bad news on overall revenue, but some good news in terms of how the company is framing what it's calling a turnaround and on the subscription front. How do we measure whether the company is really beating its own timeline? Do you agree? I mean, there's really no way to measure if it's beating its own timeline. We have to take their word for it, right. Barry McCarthy says his timeline was longer than the one year. He says that you know this has taken right. Remember he joined in February and he's really pulled the company apart. You've laid off thousands of people already, You've outsourced manufacturing, you've outsourced customer service, you've outsourced deliveries. Right, So they pulled every lever possible. They've run the company into the ground and really starting you know, trying to start over. But we don't see the positive impact there on the stock. Obviously their town you know, over at this point in the last year or so. But you are seeing some positive comments and positive momentum. They're really talking up subscriptions. Subscriptions are now well over six of their overall revenue, right, which obviously wasn't the case that there, you know, when they were high flying at the you know, the top of the pandemic. So I think if they continue to move the needle and subscriptions, they really try to compete with Apple Fitness Plus, Uh, they really try to integrate with bundles between hardware and software and ultimately maybe exit hardware, something that I speculate they should do, not saying they said they would do. I think they you know, could be on solid ground for a little while. Quick question, what about an acquisition Amazon Apple, Would they ever buy a Peloton? I don't think Apple whatever buy Peloton. They have Fitness Plus, they have the Apple Watch, and really you would be buying their hardware business, which is you know, failing at this point. Amazon maybe for prime. I really think Netflix has not done a good job in expanding beyond their core content. They've really failed in gaming. They should probably try to get into music as well, but fitness that could be a big way to lock people into Netflix subscriptions. All right, looks like some CEOs have some consulting to do with Mark German. Mark, thank you so much for joining us. I always appreciate you stopping by meantime, Jeff Bezos maybe buying another business in Washington. The NFL commanders, the Amazon founder, may bid for this team, according to folks familiar with the matter. The news was first reported by The Watchington Post, which Bezos also owns. Media entrepreneur Byron Island is preparing to sell the team. Amazon currently carries the NFL's Thursday night football package. Welcome back to bloom More Technology, Emily check in San Francisco. I want to get back to the markets and names across e V and mobility on the move. Here's at Ludlow back again, Yeah, Nikolas, where I was spending my morning and it was really interesting. The stock up as much as them percent and then ultimately closing down pretty reasonable performance in the corner, you know, very modest revenues, but what spoot the market was. In fact, they are not going to reach their original guidance as three battery electric semi trucks this year, and actually sort of downgraded the outlook for the rest of the year and next year, saying that performance is not going to be as good as they hope. Their expectations are being lowered because customers for battery electric commercial vehicles are pulling up back. They're basically saying that the cost is too high right now, the charging infrastructure is too high. You look at that chart and kind of the wild ride that we had for Nicola throughout Thursday's session to others in that space as well. Fiska also sliding after it reported a loss in RBC cut the stock to sector perform I think there's a lot of interest in Fiska given that they plan to start production of their SUV this month. Of course it's built by a third party, and then you have a raw innovation more focused on the autonomous driving space. This is a very much a pre revenue company, but with some fighting talk, they are capitalized to get in and Aurora telling investors that from they're on track to launch this commercial autonomous trucking business. Fighting talk. The stocks seem to like it is fighting talking up. I think there's a lot of questions in this space right now. All right, and hang on, I want to stick with Aurora and the future of autonomy. Aurora giving some funning talk about the real world prospects for self driving tech. But the industry is having a rocky patch with competitor Argo AI shutting down after Volkswagen and Ford walked away from backing that deal. Is it the first crack and a bigger fissure and self driving technology? Or as co founder and CEO Chris Urmson is with us now, So Chris, what do you think is it? Yeah? I think it's just normal. Right. What we're seeing right now is what happens in any industry that if you look at the automotive industry, at the beginning of the twentieth century, there was two fifty car companies. By the nineteen thirties, there was three, and so we've seen a lot of companies kind of spring up explore this space, and some of they are going to succeed some of them aren't at Aurora. We positioned ourselves to be independent to have the capital we need, the people in the technology, and so you know, I'm actually more optimistic than ever before about the space and where we're going. Well, as do you say risk is normal, But if you look at what happened with Ourgo shutting down big investors or potential investors pulling out, is that a risk of our faces No, In fact it's been. It's part of our strategic advantage. Right from day one. We wanted to be an independent company because we knew we wanted to be able to focus on the thing that mattered, on delivering on our mission getting self driving technology into the market. When Jim Farley talked about shutting down their investment in Ourgo, he literally said, we want to place our bets somewhere else, right, So we don't want to be another bet. We want to be the bet uh And I think we If you look at our investor base, these are folks you get the opportunity, understand the quality of the team, and are excited about the journey. More on, Chris, is good to see you virtually at least you know you just said that what we're seeing in the industry is normal. But what VW and Ford were saying is that actually we're pulling out because this is a much more distant technology than we thought. It's too far away. Right now, what are you doing to ensure stability for yourselves in terms of raising money? Are you going to plan head count reduction to kind of preserve cash because you guys still have a little way to go as well. Yeah, so I've been in the space for twenty years ish um, so kind of understand how hard the problem is. And again, we we engineered the company from day one to solve these important problems, realizing we were climbing a mountain. So the company we have amazing partners. We work with as you've got on the screen here Volvo Trucks. We work with pack oar to the top three truck manufacturers, who work with Toyota, the world's number one car manufacturer, Uber, the world's wonder one right healing platform, FedEx, Schneider Werner, some of these amazing trucking companies. So we feel like we're spring loaded on that front to go to market. So you know, yep, we we raised a lot of last year. We're in a very strong position with one point two billion dollars on the balance sheet at the end of the quarter. So we're we're really excited about the path forward here. Is it possible that Apple or Microsoft buys your company? Chris? We have so so I think you're alluding to a memo that leak that I drafted for a conversation with our board, and so I don't know whether it's possible or not. Um Uh, you know, we're not going to comment on those kind of things, but it's I think for any company in the in the existing marketing conditions, you need to be exploring the span of options from um you know, as you said, headcount reduction, acquiring companies, using you know, like they talk about a crisis being the worst thing to waste through focus and as a company, that's what we've taken, right is the path. Okay, We're going to focus on getting the trucking product market. We're going to be more efficient where we can be with the capital we have on hand, and we're just going to execute through this. And we have the capital to do that, and we have the team and technology to make it happen. Chris, when you and I lost saw each other we were in Texas riding around in self driving semi trucks. Do you remember that? But you know, your regional ambitions for Aurora were broadened that It seems like very much the focus is on the the use case of trucking, delivery, haulage. Have you had talks with some of the big players in that space, like Amazon, like Walmart. So, so we are still building a platform that will drive all kinds of vehicles. The right first place first to deploy the technology is in trucking. We see the opportunity, the market need is there, the economics are there, the market scale is there. Right, it is just the right place to deploy this first. But we have those partnerships with Toyota and Uber that thus springloaders. When we get to right healing, which will be our second product in the space, we expect to be you know, to to go charge into that, and yes, we have amazing partnerships. Or Anthetics is the largest carrier of lesson truckloaders loads in the US and it's also the most carrier most tractors and trailers of anyone in the US. So we're working with some amazing folks today. You know, talk to us about the longer term, you know, beyond trucking. Where could this technology go and how long is it really going to take because you know, you know, much of our coverage recently has been we've been talking and talking and talking about this. You said, you've been in this industry for twenty ish years, um, but still hasn't fully come to fruition. Well, we're at this point. So to one of the challenges of our technologies. We get to develop it like out in the public because we're on the roads and people see it. So I think you get to see a little bit more behind the curtain of what it takes to actually develop a game changing or world changing technology. I think it's really exciting to see some of our competitors and vehicles on the road with no drivers in in places like uh in Arizona, in San Francisco. We're on the road every day with our trucks hauling loads for our customers, and so that's exciting. And we're looking forward to the next two years. And we've been a leader in transparent orency. We've shared our roadmap from here to the launching the product with that operator, and we continue we want to continue to do that to build trust through what I think of as the current valley of disillusionment. Can you give me a number how long until long haul trucking is truly driverless? Yeah, So we've shared a roadmap for us. At the end of Q one, we're working towards having the roar driver be feature complete, which means it does everything it needs to to be able to drive, just not yet well enough. By the end of next year, we're working towards having the roar driver be ready so that if we had a truck platform that had the was autonomy enabled, we'd be able to pull the operators out of those trucks and have them operate without anybody on board. And we expect to actually launch in the following year, in twenty four Chris, Look, you know, I know at asked earlier about the difficulty of the environment, but you know, have you thought about cost costs, have you thought about layoffs? It seems like everyone is thinking about it, but everyone's strategy is different. For example, Brian Chesky told us yesterday, UH to use a car analogy, he said, we're actually stepping on the gas, not stepping on the brakes. Yeah. For us, we've we continue to focus on being efficient with the capital we have. That will pushes the capital we have on hand pushes into mid We've looked at where can we be doing things sequentially rather than parallel, and that's one of the reasons why we're focusing so much on trucking. We're not uh not doing cars, but we're gonna kind of have that more streamline off the back of what we do in trucks. We've looked at through the organization, how can we restructure things to be more efficient. We've made changes to the way people report UM. We've looked for duplications and simplified those and move people in different parts of the organizations. And we've looked at, you know, one of the things we need versus one of the things we want, and we're just getting the things we need. UM. So we're being thoughtful. We're extending the runway where we can. But but the opportunity is so exciting, the position we're in is so amazing that we just need to charge through this drive through alright, Aroor CEO Chris Urmson and our own let's thank thank you both very much. All right, coming up to major power players in Crypto just reported earnings coin Base and Square coming up. This is Bloomberg coin based and block chas reported earnings as headwinds for crypto persist Bossi dug through the report, Sinali, what are the highlights. It's a pretty good day when you're looking at these firms and you're looking at block for example, which had already sold off this year, We're coming in with gross profit above expectations. They're really growing their cash up there. I want to kind of hone in here as a pertains of crypto, because of course we have a very crypto friendly CEO in Jack Dorsey. Bitcoin revenue was one eight billion nearly. While that's down about three percent year over year, it's still up a hundred twenty eight percent on a three year compounded growth rate. So if you're looking at the crypto market and how what it means for these fintech firms, it's really not as bad as it could be. And of course that commitment is still there as they grow those other financial services really quickly. Pivoting here even the coin base, they have really highlighted a lot of headwinds here. You do see that jump here in subscription and services revenue, and that is even larger that jump, it would be two percent when you hold crypto prices constant, they're really benefiting from that interest incomes. So you're seeing these firms really leaning on the diversification emily of the businesses here in order to show investors what they're worth. Robin Hood we have to point out as well because revenue top to estimates, uh, and really they're the stockwise or the down there down the least of the group here. They're only downe about this year crypto decreased twelve percent, but options in equities were up and cost cutting is really helping them drop operating expenses down twelve percent, and you're seeing that helped them really come in with an adjusted profit number that is better than expected. They're coming in with adjusted profit that is rather than a loss. But again, can that can that hold when it's not just on an adjusted basis? You know, Jack Dorcy, of course, the CEO of Block, has been in the news all gear for a totally different reason, given the drama that's happening at Twitter. You know, did we hear from Jack on the call and you know, talk to us a little bit of Obviously he was really instrumental and and launching some of Twitter's early crypto projects. You tell us a little bit more about the connection, certainly because we know Jack himself has really supported a lot of companies in the in the Lightning network, for example, and really try to integrate it with Twitter. But no, he he was available in the block call, and we know he's focusing very much so on block and financial services. He did not discuss Twitter, a question I would have this kind of looming out there in the ether is as it pertains to block in Twitter. We asked Anthony Nodo yesterday a sofa a similar question, given his former Twitter background, whether these new fintech firms can partner with Twitter in order to expand financial services to create that great super app that loves to talk about so looming open a question and it's yet to be seen. But no, no, yesterday certainly did seem like they were open for business. Should that be something that Twitter would explore? All right, Bloomer Snelly Bostick, thank you on that note. We just got another headline on the Bloomberg that Elon Musk is asking Twitter to cut infrastructure costs by a billion dollars. This on top of more than thirty seven hundred employees that we've reported will be laid off at Twitter tomorrow and that they will be informed of whether or not uh, they're going to be laid off tomorrow. So again another headline coming from orders that Musk is calling on Twitter to cut infrastructure costs by a billion dollars. Pitch Book just released a report on women in venture capital found that women founders have posted the second highest deal value figures on record despite volatility, joining us now Sarah Chin Spellings, co founder and managing partner of Beyond the Billion UM. Sarah talked to us about UM the silver linings that you found for women run businesses. Here. Hi, Emily, so good to be here, Thanks so much for highlighting. I'll report once again, you know, the data continues to tell the same story. And I think you've heard this narrative before, Emily, that female founders continue to outperform no matter what the circumstances, despite market conditions, despite their turbulence in the markets, they continued to be resilient, and yet they continue to be under invested. So while we you're seeing higher numbers compared to one with with deal value becoming a lot higher UM in the recent months, what's not sort of on the upward trajectory that we're really looking forward towards is the proportion of deal value and deal count as a whole competitive to the whole venture capital. So really a lot to unpack here, you know, from exit value to their performance in general, from even looking at the burn rate of venture capital funding um. And there's been a lot of news as I think you've covered in your last couple of segments as well, right, you found that women founders had lower burn rates, greater valuation growth at the late stage versus companies founded by men. You're over a year. What do you think behind that? Yeah, you know this data. You know, people always ask us, are you surprised by the numbers, and the reality is we're not because women continue to outperform in leaps and bounce And the reason for that is this good news venues they've not traditionally had a lot of funding and they've had to work with what they had, and that means that there are a lot more resilient. They've planned their cash management and they're able to weather the storm. And this you know, guess what, it is a little bit of a funding winter, and the storm is here and whiles you know, there will be winners and losers. I think it's clear that women have been smart about planning forward and their cash management is showing right now with the burn rais being a lot more manageable. And by the way, as you mentioned, you know, the drop in late stage funding in terms of median valuations that we saw, you know, the crash from from the valuations from turning to one which was really you know, Blockbuster year that they were starting to sort of see unraveled now was really showing how there were a lot of companies that had valuations that were not sustained. And with female founders there are always a lot more UM. I wouldn't call it conservative, but there are a lots smarter, a lot more UM realistic about their projections and what they can do, and therefore their evaluations are sustained. That sort of explaining the numbers of why the drop hasn't been as much as you've seen for the wider market. I'm not going to argue with those adjectives, Sarah about the sectors that are seeing the most growth. You know, we were talking about health tech earlier, self driving tech earlier, and the narrative is different for all of them. Yeah, well, Emily, you know, the good news is that women continue to innovate in all sectors, right, So of course we see the data where there's a lot of growth in retail, in B two B sas. In fact, you know, some of the top unicorns that have female founders at the HELM were women in health tech and women in stas as well. The two decacorns that emerge, so decacorns being for those who may not be as familiar, um multi billion companies valued at ten billion dollars and that's talk desk and deal that really brought the valuation up and and sort of the numbers and trends that we're seeing. So we're seeing a lot of growth in retail and health tech, in fintech and SAS and we're excited by as a whole, you know, for the that we do without consulting with funds over a hundred funds across the globe. Women continue to innovate across the sectors despite market conditions. Even if they're in a sector that's being hit hard right now with market conditions, they are pivoting and figuring out what next. How are dynamics between LPs and GPS changing in this environment, there's a lot of money sitting on the sidelines that venture capitalists have raised. There's not necessarily a place to put it all. Yeah, Emily, thanks for asking all of that. You know, the LP and GP sort of connection is one that we've focus a lot on, right, and I think you've picked that up rightly. Despite what has been said about the fundraising winter, it's clear that there is a dispersion right there, winners and their losers, and there are those multi billion firms that continue to raise billions of dollars and you know, we've got a lot of dry poutics standing on the sidelines. But he this is what's happening. You know, LPs are being a lot more cautious, right. The word is we're optimistic, optimistically cautious about the wave would and therefore, despite money in the bank um, a lot of them are being slow to deploy. So in fact, you know, whilst you're seeing a lot of money being passed onto gps, uh, this doesn't necessarily pass on to the founders, which is where they're feeling the crunch a little bit. But you know, the winners will emerge and I think it'll be more and more important to UH see founders really emerge in this crisis, right. I think a lot of the big names that you and I know, Uber, ARABNB all emerged from a time of crisis, and I think this is gonna be a good time for gps that are focused on what next, the next generation companies to really do the right thing, and LPs have a role to play here beyond the billions. Co founder sarag And Spellings, thank you for sharing all of that with us. Worth checking out the report and more depth if you'd like. Later on the show this week Friday XPED CEO Peter Kerrent, we'll talk to us about the travel rebound or lack there. This is Bloomberg Baden,

From the heart of where innovation, money and power Colli in Silicon Valley and beyond. This is Bloomberg Technology with Emily jay I. Remember we check at San Francisco and this is Bloomberg Technology coming up the next hour. Twitter is shrinking Elon Musk, laying off half the workforce around thirty seven h people as he restructures the entire company. Meantime, brands continue to mull ads on Twitter, and Musk is doing away with policies like a once a month rest day and war plus self driving technology under the regulatory microscope. As we ached closer to a future with driverless cars, we talked about the challenging road ahead with Aurora, CEO of Chris Urmson, and another tough day for Peloton after revenue fell way short of expectations. Still, CEO Barry McCarthy is confident to turnaround plan will work sooner than expected. We will discuss all of that in a moment, but first I want to dig into those layoffs that Bloomberg has learned will happen at Twitter. Musk planning to lay off about thirty seven hundred people, half the current workforce. Our sources telling us he plans to tell the workers who will be affected on Friday. Bloomberg's Kurt Wagner of course critical along with ed to our reporting on all of these latest Twitter developments. Kurt, where are these jobs going to come from? What do we know? Yeah? I mean this is company wide. Um, it's not necessarily going to be in any particular area. Well, the one thing that Ellen has kind of stressed that the product and engineering seemed to be where his focuses. So it's possible that you know, that might be a little bit less impacted than something like, um, you know, trust and safety or policy legal things like that. But you know, this is a part of his strategy to try and get the company into a better financial situation. Right, he paid forty four billion dollars for Twitter. They now have these huge debt payments that they're going to have to start paying off for these interest payments. Um, and you know part of his plan is let's cut head count. So how are Twitter employees feeling right now? I mean, the acts is going to come down on Friday, and nobody knows if they're going to be cut yet. That's exactly right. And they're not only that, Emily, they haven't heard from Elon Musk at all since the deal clothes, they haven't heard from any other leadership, right. Everyone's kind of talking with their managers, but there's been no company wide messaging at all. All of the C suite um, you know, CEO, CMO, CFO, all of those folks were fired last week or early this week. So if you're employee at Twitter, you're getting your information from places like Bloomberg or from other media outlets, right, and that's where you're finding out what's happening at your own company. And so that's quite unsettling for a lot of people, especially when you're sitting around wondering, am I going to be employed by the end of the week. So this is a stressful time internally, to say the least. Um and a lot of employees we're seeing are sort of looking out for each other, trying to give best tips on what happens when you get laid off. Hey, let let me make references for you, that kind of thing. You know, they're trying to to take care of each other because the company doesn't seem to be doing it for them. Meantime, we've just got this headline from Dow Jones at a number of pretty prominent advertisers are pausing ads on Twitter. I mean, do you think that this is going to become a bigger thing? I mean, we talked about the potential for a boycott. Does it get to that, Well, this is what I think we're talking about yesterday, and I think that the chance of a boycott not only seems possible, but I do think it seems like a really big deal. And again, it's because the time we saw this happen with Facebook, all the key executives that the todd the Sheryl Sandberg's and those at the top of the company on the business side, they went out and they did damage control for days, right, And we're just not going to see that at Twitter because all the people at the top of a company are gone. And so when you have these big advertisers, and Twitter is very much a relationship driven advertising business because they don't have that, you know, very intimate direct response type stuff. When you have these big advertisers really being cautious or putting things on pause, you don't have the people inside of Twitter to necessarily go to them and reassure them like some of these other big ad companies might. So I think it's a I think it's a dangerous thing that's happening here. And tell us a little bit about what we know about how decisions are being made on the inside, who's making the decisions, and how things that are being communicated are actually being communicated. Yeah, well, we know that Ellen is making the decisions, right, and the best I can I can tell is that a lot of things are being done very quickly and sort of haphazardly. Right, I mean, even this change, they're going to raise the price of their subscription product to eight dollars, and they're going to add some new features, including the blue check verification. You know, we saw him sort of like work shopping this publicly on Twitter, right, He's like tweeting, Hey, would you pay for this? How much would you pay? What features would you want? And then all of a sudden, he just announced it the next day. And so we're seeing there's a very small group of folks, including some venture capitalists, who are sort of advising him here. But really it feels like Ellen is sort of um, you know, kind of making this up as he goes along. As I mentioned, there's not a lot of um messaging coming from the top of the company at all. So unless you're in a particular group working on a specific problem for him, you don't really know what's happening at the company. All right, Kurt, and I'll let you get back to work in the phone signal, your Twitter, d M s and all the ways you're breaking all this news. Bloomberg's Kurt Wagner, thank you for the update. Last month, a venture capital firm CRV announced one and a half billion dollars and funding across two funds, which means more dry powder to take advantage of low value tions. But how are firms thinking about how to deploy all that cash and potentially very long downturn. Kristan Baker Spone is a general partner at CRV and joins me now. Kristen, how is crvs strategy evolving in the midst of this downturn? What are you all talking about around the partner table. Around the partner table, we're talking about how we're continuing to play to our strengths. CRV has been in business for over fifty two years and focused on backing founders at the early stages. We raised one point five billion dollars, as you mentioned, to continue to do that and invested the earliest stages, partnering with founders that are building game changing companies. So are you waiting for valuations to come down? And are you finding enough places to put that cash given so many companies out there are struggling. We're seeing valuations compressed across the board. You even just mentioned some books out in the public markets that are seeing valuations compress, and we're seeing that play out again across the private sector as well. That being said, at the early stages, we're backing founders that are in this journey for the long haul. And as someone who focuses on health tech, healthcare isn't completely recession proof, but it's definitely a defensive place to be in the market where there's continued to be spend an innovation and technology adoption. So let's talk about health tech because I know that's your focus. Is it as cool as it was in the middle of the pandemic or not? Well, I continue to think it's very cool. That being said, I think that there was a really interesting we had a watershed moment during the pandemic where there were a number of trends that were already happening across whether it's consumerism and healthcare adoption of technology bringing AI into healthcare delivery that the pandemic helped unlock, and that activation energy and that pent up demand was released. Now as the market has cooled, we're continuing to see those trends play out, but at a much more at a much more um reasonable pay ace of technology adoption. A few companies that a highlight, you know, one being a company Wheel. You just had the logo up on the screen. Weigel is in the health, telehealth and marketplace space where it's helping unlock telehealth for large tech companies, for large providers as well as for companies that are trying to put great care in the hands of consumers like you and me. So what is it about health tech that you know specifically? It's like to you. We have Apple coming into this, Google, Amazon trying to get in to health tech. Is that a threat that big tech giants want in or is that an opportunity? I think it's an opportunity. We're seeing a number of large players come into the space. You mentioned Amazon buying one Medical. We're hearing rumors of Apple getting into the health insurance game. We're seeing Google continue to play in the data space. I think it's a recognition of how technology has been in healthcare bit of a laggered into story um and there's so much opportunity to bring healthcare into the hands of not only clinicians but also individuals like you and me, in order to bring us the care that we need when we need it, so many of us. You know, for the very first time during the pandemic, did at home Diagnostics had our first telehealth visit. But there's also a huge opportunity to drive better efficiency in the care delivery system across the board. Meantime, more broadly, the world is falling apart and Silicon Valley is kind of crumbling. We've seen layoffs across the board. We just talked about thirty people about to lose their jobs at Twitter. Does this how broader ramifications on the startup ecosystem. They're definitely broad our immifications across the startup ecosystem, and that's why you know the breadth and depth of the firm like CRV, where we've partnered at the early stage, but also seeing a number of different ups and downs in the market. And this is where you know, we're seeing leaders make really tough decisions and the leaders are that are making tough decisions, are focusing not just on growth. Growth is necessary but not sufficient. How are they focusing and investing in their companies and in the future R and D as well as the growth to drive scalable business models and build the game changing companies that were excited to continue to back. So what advice are you giving startup founders right now given these tough market conditions. As a board member and a partner to many of the founders that I work with, I'm trying to help them see around corners and see what's coming down the pike. And I think one of the key things that founders are focusing on is not just how can they have clear eyes and continue to focus on their business but also make the tough decisions. You know, oftentimes, uh, it can be it can be tempting to continue to want to see the world play out. But what I see are those folks that are those founders that are making the tough decisions with clear eyes, with advice from their executive teams as well as their investor partners, are going to be the ones that cannot just weather the storm, but hopefully emerge even stronger. So talk to me a little bit then about the founders you think that will or can be successful at a time like this. I mean people are calling this, you know, dot com bust two point oh. I mean this could go down in the history books as a tectonic shift in you know, the industry. You know, the companies that survive and the companies that do not. We continue to focus on backing not only passionate founders, but Emily, you just mentioned how tough the times are. The word that comes to mind is grit. Are you founders and companies that can be gritty and not just as I mentioned, move through this time, but potentially emerge stronger. I also look for founders that are beacons, that are beacons for talent, that will continue to be beacons for customers and for capital even in the tough times. I think we're going to continue to see investment in really high quality teams and really high quality businesses. Those aren't going away. Um, what we're seeing is that flight towards that really high quality where there's growth but also efficient growth to building these companies. And I know you know you obviously you also worked in banking. You helped take some companies public. What is your sense of how long this downturn last? You know, how long are we in for here? Is it six months? Is it eighteen? Is it three years? Well, you know, I am continuing to be continuously optimistic that will will make our way through. That being said, planning for a bit of a stormy weather ahead. So, um, you know, your guess is as good as mine in terms of how long this will last. But I think we're continuing to invest in companies and work with founders that are seeing not just a brightness on the horizon, but hopefully continuing to work through these storms. Um, my guess is we're going to be in this for a considerable amount of time, and so having folks that are going to continue to focus on the fundamentals of their business, keep the main thing, the main thing, and build towards the future. Alright, keep the main thing the main thing. We'll remember that. Kristin Baker's phone, general partner at CRV, Thank you so much for stopping by. All Right, coming up, Peloton continuing to struggle, but the CEO still upbeat. We'll explain why next. This is Bloomberg Peloton rebounding after tumbling earlier with the company posting a weaker forecast than expected, even as the CEO declared it's meeting its own timeline for turning the fitness company around. Joining us now Bloomberg, Smart German Mark Uh talk to us about what's going on here. Investors clearly don't like what they see. Yeah, we got this morning was the definition of a mixed earnings report or PR putting its fingerprints over some numbers here. So if you look at the numbers, things are not so great. You're seeing a revenue forecasts as a client about thirty seven percent UH in the current quarter. That's the second fiscal quarter for Peloton. On the other hand, you have a letter from Barry McCarthy, Peloton CEO, saying that the ship is starting to turn. That is my impression as well. You are seeing some positive direction happening in some of these numbers. Gross margins have improved over the past couple quarters. Free cash flow has improved, but we don't like our the revenue numbers, specifically for hardware, they're hard hardware revenue numbers continue to fall while their subscription numbers continue to climb. The good news there is you see usages continuing. Churn is very low. Subscriptions are continuing, but people are not buying the hardware. To me, this raises the question why is Peloton in the hardware business at all? Right? Why not completely pivot the company away to putting its tablet on third party bikes? As we know, Peloton probably has the best content, probably has the best software in the hardware bike in treadmill space. Why not us get rid of your failing hardware business and make a really big subscription business. So I think that's where the company may eventually go. So clearly some really bad news on overall revenue, but some good news in terms of how the company is framing what it's calling a turnaround and on the subscription front. How do we measure whether the company is really beating its own timeline? Do you agree? I mean, there's really no way to measure if it's beating its own timeline. We have to take their word for it, right. Barry McCarthy says his timeline was longer than the one year. He says that you know this has taken right. Remember he joined in February and he's really pulled the company apart. You've laid off thousands of people already, You've outsourced manufacturing, you've outsourced customer service, you've outsourced deliveries. Right, So they pulled every lever possible. They've run the company into the ground and really starting you know, trying to start over. But we don't see the positive impact there on the stock. Obviously their town you know, over at this point in the last year or so. But you are seeing some positive comments and positive momentum. They're really talking up subscriptions. Subscriptions are now well over six of their overall revenue, right, which obviously wasn't the case that there, you know, when they were high flying at the you know, the top of the pandemic. So I think if they continue to move the needle and subscriptions, they really try to compete with Apple Fitness Plus, Uh, they really try to integrate with bundles between hardware and software and ultimately maybe exit hardware, something that I speculate they should do, not saying they said they would do. I think they you know, could be on solid ground for a little while. Quick question, what about an acquisition Amazon Apple, Would they ever buy a Peloton? I don't think Apple whatever buy Peloton. They have Fitness Plus, they have the Apple Watch, and really you would be buying their hardware business, which is you know, failing at this point. Amazon maybe for prime. I really think Netflix has not done a good job in expanding beyond their core content. They've really failed in gaming. They should probably try to get into music as well, but fitness that could be a big way to lock people into Netflix subscriptions. All right, looks like some CEOs have some consulting to do with Mark German. Mark, thank you so much for joining us. I always appreciate you stopping by meantime, Jeff Bezos maybe buying another business in Washington. The NFL commanders, the Amazon founder, may bid for this team, according to folks familiar with the matter. The news was first reported by The Watchington Post, which Bezos also owns. Media entrepreneur Byron Island is preparing to sell the team. Amazon currently carries the NFL's Thursday night football package. Welcome back to bloom More Technology, Emily check in San Francisco. I want to get back to the markets and names across e V and mobility on the move. Here's at Ludlow back again, Yeah, Nikolas, where I was spending my morning and it was really interesting. The stock up as much as them percent and then ultimately closing down pretty reasonable performance in the corner, you know, very modest revenues, but what spoot the market was. In fact, they are not going to reach their original guidance as three battery electric semi trucks this year, and actually sort of downgraded the outlook for the rest of the year and next year, saying that performance is not going to be as good as they hope. Their expectations are being lowered because customers for battery electric commercial vehicles are pulling up back. They're basically saying that the cost is too high right now, the charging infrastructure is too high. You look at that chart and kind of the wild ride that we had for Nicola throughout Thursday's session to others in that space as well. Fiska also sliding after it reported a loss in RBC cut the stock to sector perform I think there's a lot of interest in Fiska given that they plan to start production of their SUV this month. Of course it's built by a third party, and then you have a raw innovation more focused on the autonomous driving space. This is a very much a pre revenue company, but with some fighting talk, they are capitalized to get in and Aurora telling investors that from they're on track to launch this commercial autonomous trucking business. Fighting talk. The stocks seem to like it is fighting talking up. I think there's a lot of questions in this space right now. All right, and hang on, I want to stick with Aurora and the future of autonomy. Aurora giving some funning talk about the real world prospects for self driving tech. But the industry is having a rocky patch with competitor Argo AI shutting down after Volkswagen and Ford walked away from backing that deal. Is it the first crack and a bigger fissure and self driving technology? Or as co founder and CEO Chris Urmson is with us now, So Chris, what do you think is it? Yeah? I think it's just normal. Right. What we're seeing right now is what happens in any industry that if you look at the automotive industry, at the beginning of the twentieth century, there was two fifty car companies. By the nineteen thirties, there was three, and so we've seen a lot of companies kind of spring up explore this space, and some of they are going to succeed some of them aren't at Aurora. We positioned ourselves to be independent to have the capital we need, the people in the technology, and so you know, I'm actually more optimistic than ever before about the space and where we're going. Well, as do you say risk is normal, But if you look at what happened with Ourgo shutting down big investors or potential investors pulling out, is that a risk of our faces No, In fact it's been. It's part of our strategic advantage. Right from day one. We wanted to be an independent company because we knew we wanted to be able to focus on the thing that mattered, on delivering on our mission getting self driving technology into the market. When Jim Farley talked about shutting down their investment in Ourgo, he literally said, we want to place our bets somewhere else, right, So we don't want to be another bet. We want to be the bet uh And I think we If you look at our investor base, these are folks you get the opportunity, understand the quality of the team, and are excited about the journey. More on, Chris, is good to see you virtually at least you know you just said that what we're seeing in the industry is normal. But what VW and Ford were saying is that actually we're pulling out because this is a much more distant technology than we thought. It's too far away. Right now, what are you doing to ensure stability for yourselves in terms of raising money? Are you going to plan head count reduction to kind of preserve cash because you guys still have a little way to go as well. Yeah, so I've been in the space for twenty years ish um, so kind of understand how hard the problem is. And again, we we engineered the company from day one to solve these important problems, realizing we were climbing a mountain. So the company we have amazing partners. We work with as you've got on the screen here Volvo Trucks. We work with pack oar to the top three truck manufacturers, who work with Toyota, the world's number one car manufacturer, Uber, the world's wonder one right healing platform, FedEx, Schneider Werner, some of these amazing trucking companies. So we feel like we're spring loaded on that front to go to market. So you know, yep, we we raised a lot of last year. We're in a very strong position with one point two billion dollars on the balance sheet at the end of the quarter. So we're we're really excited about the path forward here. Is it possible that Apple or Microsoft buys your company? Chris? We have so so I think you're alluding to a memo that leak that I drafted for a conversation with our board, and so I don't know whether it's possible or not. Um Uh, you know, we're not going to comment on those kind of things, but it's I think for any company in the in the existing marketing conditions, you need to be exploring the span of options from um you know, as you said, headcount reduction, acquiring companies, using you know, like they talk about a crisis being the worst thing to waste through focus and as a company, that's what we've taken, right is the path. Okay, We're going to focus on getting the trucking product market. We're going to be more efficient where we can be with the capital we have on hand, and we're just going to execute through this. And we have the capital to do that, and we have the team and technology to make it happen. Chris, when you and I lost saw each other we were in Texas riding around in self driving semi trucks. Do you remember that? But you know, your regional ambitions for Aurora were broadened that It seems like very much the focus is on the the use case of trucking, delivery, haulage. Have you had talks with some of the big players in that space, like Amazon, like Walmart. So, so we are still building a platform that will drive all kinds of vehicles. The right first place first to deploy the technology is in trucking. We see the opportunity, the market need is there, the economics are there, the market scale is there. Right, it is just the right place to deploy this first. But we have those partnerships with Toyota and Uber that thus springloaders. When we get to right healing, which will be our second product in the space, we expect to be you know, to to go charge into that, and yes, we have amazing partnerships. Or Anthetics is the largest carrier of lesson truckloaders loads in the US and it's also the most carrier most tractors and trailers of anyone in the US. So we're working with some amazing folks today. You know, talk to us about the longer term, you know, beyond trucking. Where could this technology go and how long is it really going to take because you know, you know, much of our coverage recently has been we've been talking and talking and talking about this. You said, you've been in this industry for twenty ish years, um, but still hasn't fully come to fruition. Well, we're at this point. So to one of the challenges of our technologies. We get to develop it like out in the public because we're on the roads and people see it. So I think you get to see a little bit more behind the curtain of what it takes to actually develop a game changing or world changing technology. I think it's really exciting to see some of our competitors and vehicles on the road with no drivers in in places like uh in Arizona, in San Francisco. We're on the road every day with our trucks hauling loads for our customers, and so that's exciting. And we're looking forward to the next two years. And we've been a leader in transparent orency. We've shared our roadmap from here to the launching the product with that operator, and we continue we want to continue to do that to build trust through what I think of as the current valley of disillusionment. Can you give me a number how long until long haul trucking is truly driverless? Yeah, So we've shared a roadmap for us. At the end of Q one, we're working towards having the roar driver be feature complete, which means it does everything it needs to to be able to drive, just not yet well enough. By the end of next year, we're working towards having the roar driver be ready so that if we had a truck platform that had the was autonomy enabled, we'd be able to pull the operators out of those trucks and have them operate without anybody on board. And we expect to actually launch in the following year, in twenty four Chris, Look, you know, I know at asked earlier about the difficulty of the environment, but you know, have you thought about cost costs, have you thought about layoffs? It seems like everyone is thinking about it, but everyone's strategy is different. For example, Brian Chesky told us yesterday, UH to use a car analogy, he said, we're actually stepping on the gas, not stepping on the brakes. Yeah. For us, we've we continue to focus on being efficient with the capital we have. That will pushes the capital we have on hand pushes into mid We've looked at where can we be doing things sequentially rather than parallel, and that's one of the reasons why we're focusing so much on trucking. We're not uh not doing cars, but we're gonna kind of have that more streamline off the back of what we do in trucks. We've looked at through the organization, how can we restructure things to be more efficient. We've made changes to the way people report UM. We've looked for duplications and simplified those and move people in different parts of the organizations. And we've looked at, you know, one of the things we need versus one of the things we want, and we're just getting the things we need. UM. So we're being thoughtful. We're extending the runway where we can. But but the opportunity is so exciting, the position we're in is so amazing that we just need to charge through this drive through alright, Aroor CEO Chris Urmson and our own let's thank thank you both very much. All right, coming up to major power players in Crypto just reported earnings coin Base and Square coming up. This is Bloomberg coin based and block chas reported earnings as headwinds for crypto persist Bossi dug through the report, Sinali, what are the highlights. It's a pretty good day when you're looking at these firms and you're looking at block for example, which had already sold off this year, We're coming in with gross profit above expectations. They're really growing their cash up there. I want to kind of hone in here as a pertains of crypto, because of course we have a very crypto friendly CEO in Jack Dorsey. Bitcoin revenue was one eight billion nearly. While that's down about three percent year over year, it's still up a hundred twenty eight percent on a three year compounded growth rate. So if you're looking at the crypto market and how what it means for these fintech firms, it's really not as bad as it could be. And of course that commitment is still there as they grow those other financial services really quickly. Pivoting here even the coin base, they have really highlighted a lot of headwinds here. You do see that jump here in subscription and services revenue, and that is even larger that jump, it would be two percent when you hold crypto prices constant, they're really benefiting from that interest incomes. So you're seeing these firms really leaning on the diversification emily of the businesses here in order to show investors what they're worth. Robin Hood we have to point out as well because revenue top to estimates, uh, and really they're the stockwise or the down there down the least of the group here. They're only downe about this year crypto decreased twelve percent, but options in equities were up and cost cutting is really helping them drop operating expenses down twelve percent, and you're seeing that helped them really come in with an adjusted profit number that is better than expected. They're coming in with adjusted profit that is rather than a loss. But again, can that can that hold when it's not just on an adjusted basis? You know, Jack Dorcy, of course, the CEO of Block, has been in the news all gear for a totally different reason, given the drama that's happening at Twitter. You know, did we hear from Jack on the call and you know, talk to us a little bit of Obviously he was really instrumental and and launching some of Twitter's early crypto projects. You tell us a little bit more about the connection, certainly because we know Jack himself has really supported a lot of companies in the in the Lightning network, for example, and really try to integrate it with Twitter. But no, he he was available in the block call, and we know he's focusing very much so on block and financial services. He did not discuss Twitter, a question I would have this kind of looming out there in the ether is as it pertains to block in Twitter. We asked Anthony Nodo yesterday a sofa a similar question, given his former Twitter background, whether these new fintech firms can partner with Twitter in order to expand financial services to create that great super app that loves to talk about so looming open a question and it's yet to be seen. But no, no, yesterday certainly did seem like they were open for business. Should that be something that Twitter would explore? All right, Bloomer Snelly Bostick, thank you on that note. We just got another headline on the Bloomberg that Elon Musk is asking Twitter to cut infrastructure costs by a billion dollars. This on top of more than thirty seven hundred employees that we've reported will be laid off at Twitter tomorrow and that they will be informed of whether or not uh, they're going to be laid off tomorrow. So again another headline coming from orders that Musk is calling on Twitter to cut infrastructure costs by a billion dollars. Pitch Book just released a report on women in venture capital found that women founders have posted the second highest deal value figures on record despite volatility, joining us now Sarah Chin Spellings, co founder and managing partner of Beyond the Billion UM. Sarah talked to us about UM the silver linings that you found for women run businesses. Here. Hi, Emily, so good to be here, Thanks so much for highlighting. I'll report once again, you know, the data continues to tell the same story. And I think you've heard this narrative before, Emily, that female founders continue to outperform no matter what the circumstances, despite market conditions, despite their turbulence in the markets, they continued to be resilient, and yet they continue to be under invested. So while we you're seeing higher numbers compared to one with with deal value becoming a lot higher UM in the recent months, what's not sort of on the upward trajectory that we're really looking forward towards is the proportion of deal value and deal count as a whole competitive to the whole venture capital. So really a lot to unpack here, you know, from exit value to their performance in general, from even looking at the burn rate of venture capital funding um. And there's been a lot of news as I think you've covered in your last couple of segments as well, right, you found that women founders had lower burn rates, greater valuation growth at the late stage versus companies founded by men. You're over a year. What do you think behind that? Yeah, you know this data. You know, people always ask us, are you surprised by the numbers, and the reality is we're not because women continue to outperform in leaps and bounce And the reason for that is this good news venues they've not traditionally had a lot of funding and they've had to work with what they had, and that means that there are a lot more resilient. They've planned their cash management and they're able to weather the storm. And this you know, guess what, it is a little bit of a funding winter, and the storm is here and whiles you know, there will be winners and losers. I think it's clear that women have been smart about planning forward and their cash management is showing right now with the burn rais being a lot more manageable. And by the way, as you mentioned, you know, the drop in late stage funding in terms of median valuations that we saw, you know, the crash from from the valuations from turning to one which was really you know, Blockbuster year that they were starting to sort of see unraveled now was really showing how there were a lot of companies that had valuations that were not sustained. And with female founders there are always a lot more UM. I wouldn't call it conservative, but there are a lots smarter, a lot more UM realistic about their projections and what they can do, and therefore their evaluations are sustained. That sort of explaining the numbers of why the drop hasn't been as much as you've seen for the wider market. I'm not going to argue with those adjectives, Sarah about the sectors that are seeing the most growth. You know, we were talking about health tech earlier, self driving tech earlier, and the narrative is different for all of them. Yeah, well, Emily, you know, the good news is that women continue to innovate in all sectors, right, So of course we see the data where there's a lot of growth in retail, in B two B sas. In fact, you know, some of the top unicorns that have female founders at the HELM were women in health tech and women in stas as well. The two decacorns that emerge, so decacorns being for those who may not be as familiar, um multi billion companies valued at ten billion dollars and that's talk desk and deal that really brought the valuation up and and sort of the numbers and trends that we're seeing. So we're seeing a lot of growth in retail and health tech, in fintech and SAS and we're excited by as a whole, you know, for the that we do without consulting with funds over a hundred funds across the globe. Women continue to innovate across the sectors despite market conditions. Even if they're in a sector that's being hit hard right now with market conditions, they are pivoting and figuring out what next. How are dynamics between LPs and GPS changing in this environment, there's a lot of money sitting on the sidelines that venture capitalists have raised. There's not necessarily a place to put it all. Yeah, Emily, thanks for asking all of that. You know, the LP and GP sort of connection is one that we've focus a lot on, right, and I think you've picked that up rightly. Despite what has been said about the fundraising winter, it's clear that there is a dispersion right there, winners and their losers, and there are those multi billion firms that continue to raise billions of dollars and you know, we've got a lot of dry poutics standing on the sidelines. But he this is what's happening. You know, LPs are being a lot more cautious, right. The word is we're optimistic, optimistically cautious about the wave would and therefore, despite money in the bank um, a lot of them are being slow to deploy. So in fact, you know, whilst you're seeing a lot of money being passed onto gps, uh, this doesn't necessarily pass on to the founders, which is where they're feeling the crunch a little bit. But you know, the winners will emerge and I think it'll be more and more important to UH see founders really emerge in this crisis, right. I think a lot of the big names that you and I know, Uber, ARABNB all emerged from a time of crisis, and I think this is gonna be a good time for gps that are focused on what next, the next generation companies to really do the right thing, and LPs have a role to play here beyond the billions. Co founder sarag And Spellings, thank you for sharing all of that with us. Worth checking out the report and more depth if you'd like. Later on the show this week Friday XPED CEO Peter Kerrent, we'll talk to us about the travel rebound or lack there. This is Bloomberg Baden,