Transcripts For BLOOMBERG Bloomberg Technology 20180207

Staff john kelly said the president will be briefed today on the democratic rebuttal of the gop memo alleging bias that at the fbi and doj. Trump has the document, but has reportedly not read it. He has until friday to block the release. And an infrastructure proposal next monday, hoping to generate 1. 5 trillion in ending on spending on roads, bridges, airports, and other public works. Only 200 billion would come from the federal government. And the pentagon says the war in afghanistan is costing u. S. Taxpayers 45 billion a year. Lawmakers grilled the Trump Administration today. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Cory i am emily chang. This is bloomberg technology. Afterhours trading soaring as much as 30 after smashing estimates in the fourth order. We will break down the companys first earnings victory since it went public. And the take on the gender dynamic in Silicon Valley. My conversation with a paypal cofounder. The move to get Workplace Culture right. And travis takes the stand, the courtroom showdown between uber and waymo. But first, to our lead. Snap jumping in afterhours after a blow away fourthquarter Earnings Report with revenue that topped estimates for the First Time Since the company went public almost a year ago. The earnings were buoyed by momentum in the advertising business and user growth. Snapchat said fourthquarter sales jumped to 285 million and to 187ctive users jumped million, up 18 from a year ago. Joining us from seattle is debra williamson, and sarah frier who covers snap for us. What did snap get right this quarter . Sarah they had been transitioning their advertising business to make it more automatic and programmatic, selling automatically, which means that they can have a bigger base of advertisers. The price of ads has actually gone down, but the volume and the amount of time people look at these ads go up. So snap has been able to make this work for them in the First Quarter for the first time. Emily deborah, what is jumping out to you . We know they have been doing a lot. There is the whole redesign, and perhaps we are seeing some of the results of that, what do you think is really driving these results . I think it is a couple of factors. I think that of all, snapchat , first really needed this quarter. Because the previous quarters were not so good for them, so this is a positive sign for the company. I really feel that users are still heavily engaged with snapchat. That is proven out i the increase in user growth rate this quarter. I think that advertisers, though some of them have been skeptical, they still see snapchat is being a place where they can be super experimental. Where they can try new things. And where they can really start to engage with the super important youth and teen audience. Emily im looking at the afterhours chart on bloomberg, still up 20 . The big question is can they sustain this over several quarters, not just one . Sarah i think that is still a huge question because this company hasnt proven that it has a lot of visibility looking into the future of the business. Including big surprises, nothing to show us that future quarters wont as well. They still have a long road ahead of them. They are competing in this market that is dominated by facebook and google. Yes, those players have advertisers wanting alternative for their money. Snap is marketing itself as an alternative. But still, it is very competitive. And instagram is growing past of nap has in terms products that snap actually invented and copied by facebook. Emily they have been accused of lifting some of snaps product ideas and executing them, perhaps, even better. What do you think the real challenges are for snap Going Forward in terms of what you will be watching . Debra first of all, to put a few numbers on what sarah just said. We are forecasting instagram have 8 billion in ad revenue this year compared to 1. 5 billion for snapchat. There is quite a gap in between the two companies in terms of advertising revenue worldwide. Snapchat is growing at roughly the same rate, about 90 growth this year compared to a similar amount for instagram. So just to put those numbers on it. But back to your question, i think the competition with is still and facebook something we are watching closely. We are also watching, because snapchat up until now has been very aggressive with new new products and new innovations. We are seeing things like maps maybe not perform as well as maybe the company hoped. We saw spectacles not perform as well as the company hoped. So the question is can snapchat actually continue to be aggressively innovative and successful with those innovations come and stay a step ahead of its competition . Emily what about the leadership turnover at the company . Is that a concern . Debra not so much. You obviously want to have strong leaders at the company. We look at two factors, growth in ad revenue, changes in ad revenue, user changes. Both of those were positive this quarter. So i dont think the changes in the management of the company are something that is impacting either of those factors at this point. Emily evan spiegel has made it clear that he knows that people who work at the company want to hear from him more. Do you think we will see more of him out there . Sarah there is a lot of confusion at the company right now because this redesign that you mentioned earlier, it was supposed to be done by the end of the year. And now we see it will be fully rolled out until the end of the First Quarter. So there are clearly some things that are still missing deadlines. There has been that management departure that you mentioned. Company has a lot to work out in terms of how it grows. There have also been a few rounds of layoff recently at the company. Emily sarah frier, i know you will keep us apprised. And debra williamson, thank you. Great to have you here on the show. Now to the Broader Market with whiplash. S. Market with the dow turning in its best performance in two years and tech shares helping lead the comeback after a two day pummeling that spread to Global Equity markets and brought volatility back to the forefront as the stocks saw wild swings on the day. Here to bring us highlights is bloomberg reporter abigail doolittle. Abigail weve had a lot to report on. Today really wild on the open. We had major averages down more than 2 , then whip sawing between gains and losses on the day. And the rebound rally at the end of the day, snapping up the highquality names like apple, amazon, micron, nvidia. That fear of missing out. The question is whether or not we will see the buying power last because the technicals are a little shaky for the major averages. Plus, if we look at the major averages from the peaks, they are still down about 5 . At that point, the sellers are in control. A little bit of relief for the buyers today on the day, right at the end of the day. Emily is the volatility going to last . Abigail it may. If we hopped into the bloomberg and take a look at this chart of the nasdaq. First of all, lets walk through today. This is today. You conceal these whipsaws. The morning on the open, a lower low, suggesting that maybe we were going to be pummeled once again, but then the recovery. The question is, whether or not this is the bottom. This is one of the bottoms. Probably not. Theres probably a little bit more selling pressure and you will have to take other technicals into account. Oh we will see, maybe buyers will get gritty and the fear on missing out on tech names and the rally, buying amazon thinking this will be the low. Time will tell. We are looking at losses still. The week is young, so lets see what wednesday, thursday, and friday bring. Emily bitcoin ending the day slightly low after hitting a big low over the last week. Abigail what a story of the year. The cryptocurrency. Speak of volatility. There is not a lot of fundamental evidence here to point to. You can talk about regulations, credit cards, banks not wanting to use the cryptocurrencies, but this is a great place to use the technicals. Pure supply and demand. , iwe happen to the bloomberg think i showed you this chart when bitcoin was probably closer to 13,000 or 14,000, it could go to 1000. These are the technicals. Last year, the big uptrend. Buyers in control. Then we have this range range between the buyers and the sellers duking it out, really battling, then the sellers took control. This entire range could drop from the downside. An equal and measured move is towards 1000. It is still a possibility. Suggesting wild volatility, uncertainty. Stay tuned. Emily its going to be a ride. You will keep us posted on every twist and turn. Thank you very much. Disney also posted firstquarter results. Teeming crowds at theme parks , including its new avatar theme park helped the Worlds Largest Entertainment Company beat on the top line. Profit at the tv business remains and retreat, and the film studio, a big comeback awaits a bigger slate of films , including black panther this month. Revenue totaled more than 15 billion, but missed wall street forecast. Coming up, paypals cofounder sits down with us to discuss how his opinions about diversity and meritocracy in Silicon Valley have evolved. If you like bloomberg news, check us out on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily apple is pulling back on buying Corporate Bonds with the its overseas cash as it prepares to bring money home to the u. S. This is according to people familiar with the matter. About 157 billion worth of the apples 285 billion in cash is making it a leading lender. Investors have been bracing for a market with fewer buyers and the new u. S. Tax law was enacted late last year. Max levchin rose to be one of the cofounders of paypal rose to be one of the most powerful men in technology, taking a center seat in Silicon Valley. And in that position, his opinion on diversity and hiring has greatly evolved. I covered his story in my book, breaking up the boys of of Silicon Valley, which it stores today. I caught up with max levchin and discussed how things operated at paypal and beyond. Max i would describe my efforts at the time with the benefit of hindsight as generally unaware. I was not particularly concerned with the gender balance or with any kind of balance. I was trying to hire good people as quickly as i could. And the one great source of excellent coders i knew was my alma mater where i came from two years prior. So i was actively vacuuming up the best and brightest that i whichtime with in school, all happened to the men. They were men of lots of diverse ethnic origin, but there were very, very few women even in my class, which was quite large. Knowhe few that i did seems to switch majors from Computer Sciences something else. Emily what you probably didnt realize was that you are becoming part of one of the most powerful networks in Silicon Valley history, which has come to be known as the paypal mafia, a group of influential people that all happened to the men. What is your take away from that . Max its its not unique. Every successful startup, especially one that selects from drive and grit and entrepreneurialism tends to generate a wave of entrepreneurs that feed off of the capital of , the network, the cachet that you establish with the Company Prior Going Forward. Nothing but great value to have derived from the network we had established. Obviously, it would be even better if it had good representation of the other gender. Emily do you think the idea of meritocracy is problematic in Silicon Valley . Because you know, one of the things that people who worked at paypal told me was that it was a meritocracy and they were hiring based on merit, when you were hiring a lot of people that you knew. Max meritocracy in a vacuum is not a bad idea. To be able to say honestly that the people that are here have earned their spot. It is a great motivator. Is downside of meritocracy if that is the only criteria, you select from people you know because if you dont know how to reach out into other groups, other communities, other flavors of engineer, for lack of a better term, you will pull from a shallow pool. We ran out of candidates because i ran out of male friends and there was no one else to recruit. Emily what was interesting to parts of your story to me is that you admit that there were some bros, a broey culture that developed, and you took action. What happened there . Max the thing about slide i think what triggered my attention to all these things was really slide. Where i started out with basically a neutral point of view. The culture will shape itself, we will get some really bright people in. At paypal, i was too young and we were growing too quickly. And i did not have enough of a worldview to understand what was being shaped. At slide, i had seen enough of these companies and was starting to realize it was forming itself without any guidance, was not what i like, was not what i wanted to do. Hard drinking, some of the on a bad day, i might call it sexist behaviors it was really not at all what i was comfortable with. And when i sort of try to gently steer it, it was not going away on its own. I realized if i dont take matters very seriously and start pushing out and drawing some very bright lines about what is ok, what is not ok, what is expected, it would not cure itself. Emily so what did you do . Max tough conversations had to be had. A couple people got fired. I made a few attempts to ban some of the happier of the happy hours. Not all of it worked. The Lesson Learned from slide was actually kind of a sad one. There are a lot of amazing people, people that i would work with again and again. I am working with some of them again. I did not blow up those relationships completely. But just a small amount of bad behavior created such a negative patina to the whole thing. It was very hard to embrace some invert some of the choices i didnt even make. I just let them happen. Emily now at the firm you have taken a different approach and you are more focused on hiring and promoting women. What are you doing differently that you didnt do at paypal or slide . Max the most important thing that we did at the firm is we took culture as a firstclass citizen. There was never a moment when we did not ask ourselves, what is this decision, what is the project, what is this process doing to our culture . It might sound embarrassing, but it is the First Company where i wrote down our core values before we made our first higher. Hire. All the companies i found it in the past, the culture emerged and sometimes it was better and sometimes it was not. It would affirm that i came into the founding with the view that i have to form the culture, i have to control what i want this company to be when it grows up. Even if we have no employees, i want to know is the kind of place i can be proud of, as opposed to the one im trying to fix. Emily how do we get more people, mostly men, to understand this problem and do something about it . What do you think needs to be done . What do ceos and investors need to do . Max theres a bunch of things. I dont know that i have an exhaustive list. I think just being aware of the fact that it is a talent war and is not justwin it by saying im going to go back to the same old well and get the same people out. The way to win it, at least the way it has worked for us, is you widen the net that you cast. That naturally leads to embracing inclusion because you find diverse candidates in diverse places. Emily that was my conversation with max levchin, cofounder of paypal and ceo of a firm. Spacex launches the most powerful rocket in the world. That story is ahead. And if you have a bloomberg terminal, check out tv. Watch us online and click on your charts, graphics, and interact with us directly. Just click tv on your terminal. You can also contact us on twitter. Check it out. The first 24 hour Global News Network streaming live on twitter. This is bloomberg. Emily spacex has officially launched the worlds most powerful rocket. The falcon heavy lifted off in florida to embark on its first test flight. It was carrying a red tesla roadster on an endless road trip past mars. Following the launch, spacex did something never before seen in space history. It relanded multiple rocket cores back to earth. Two of the three boosters came back and landed upright at cape canaveral. The boosters landed at the same time, sidebyside. This is a major milestone in the companys quest to grow the Customer Base and fund its vision on making life multiplanetary. Slack has officially named its first cfo in a blog post. Stewart butterfield announced longtime employee alan shim would be the companys chief financial officer. Just last year the Company Brought sarah frier on board as the First Independent board member. These changes could be a sign of slack pointing towards an ipo. Some context to last weeks shakeup at airbnb. At the Companies Planning meetings, cofounder and ceo privately told his been cfo Lawrence Chelsea that airbnb was putting off its initial public offering. He had been lining up investors and was eyeing a jump to chief operating officer. He protested the ipo delay. And the decision to promote above him. By the end, chelsea was out of a job. Making investment in a real estate market, google agreed to pay 2 billion from chelsea market, which sits directly across the street from the tech giants new york headquarters. The seller of the 1. 2 million squarefoot property is jamestown lp, an atlantabased Real Estate Investment firm. Coming up, more reaction to snaps blockbuster earnings results, topping estimates for the First Time Since company went public almost a year ago. We will dig into the numbers. Bloomberg techs Live Streaming on twitter. Check us out weekdays 5 p. M. In new york and 2 p. M. In san francisco. This is bloomberg. Alisa you are watching bloomberg technology. I am debra mao. The u. S. House of representatives has passed the stopgap spending bill. Wouldent trump says he welcome another shutdown if the democrats continue to refuse to mans for an immigration overhaul. Steve wynn has resigned as chairman of wynn resorts. He said a recent avalanche of publicity and rush to judgment means he cannot be effective in his current role. He has denied multiple claims of sexual harassment. The chairman of the fcc supports efforts to bring clarity to cryptocurrencies issues. He spoke before the Senate Banking committee. Main streetur investors look at these Virtual Currency trading platforms and assume they are regulated in the same way that a Stock Exchanges regulated, and as i said, it is far from that, and i think we should address that issue. Space asked passes a major milestone with the launch of its new rocket. The falcon heavy use resumes s reusable boosters. Said the launch would be considered a success if the falcon heavy did not explode after liftoff. We have liftoff across the asiapacific. I will talk about the rally in a moment. Let me start with an acute area of pain. We are talking about chinese property stocks. E are on the lunch break have a look at the declines in the morning session. Is a today look. We open higher, then cascade lower. Mightare concerns banks not be extending mortgages. It is a reminder of what can come when you have a lot of the frenzy of Retail Investors involved in the rally. Have a look at the rally. Just about every Single Market is up, with the exception of china, getting pulled down by property shares. This puts us at halfway into the losses yesterday. We are not quite there yet. Also, volumes are starting to pick up. Have a quick look at technicals. Through thes pushed 50 day moving average, a key resistance level, but the encouraging bit is the balance to 40 on the rsi. We are down on u. S. Futures come off highs of the day on ftse futures. Emily this is bloomberg technology. I am emily chang in new york. Lets return to our top story. Snap announced the companys first victory after they went public year ago thanks the strengths and advertising. Are next guest joins us now. Their social media etf has a stake in snap totaling 5 . Thanks so much for joining us. Are you surprised . I am not surprised. I think they are an innovative company. You have to think of the social Media Industry has increasingly mature and dominated by a few players in the u. S. And around the world, and to crack into that and to get into advertisers budgets, you have to be innovative and think differently. That means rest and not everybody is going to love that, but if you can successfully execute on that, people will spend money and advertise on your platform. Emily facebook and instagram are copying them and sometimes doing it better. They obviously have many more users. Obviously is going to be a challenge for snap Going Forward. If you think about it from the advertisers perspective, if you are a marketer for a company, which one are going to choose . You have a certain amount of time your day to create content, spend money on advertising. You are going to a place that is bigger and have more platforms rolled into one. It is a challenge for snap Going Forward. If they continue to innovate and keep challenging facebook, they have a chance. Emily what is your hunch that they could keep it up . It is not about one quarter but several quarters. That young market is using snapchat, and it is a strong demographic Going Forward. The social Media Industry is being driven by these megatrends. One of these megatrends is the spending power of millennials. They have a times the income. Emily oh, millennials. They have a grip on this cohort in ways that the industry is trying to figure out. Emily one of the struggling parts of snap and its technology is the potential to integrate Artificial Intelligence and augmented reality. What are you expecting there . This is the challenge for the entire industry and what theyre looking at is data. When you are thing about Artificial Intelligence, youre are only as good as your software you are programming in the data you are applying it to. If you dont have the resources and data set, that is going to be challenging Going Forward as well. But if you look at social media as a whole, this might be the industry that will benefit from the rise in Artificial Intelligence. Emily snap doesnt have the best track record with keeping its executives. Evan spiegel says he understands how more people want to hear from him, including people inside the company, who want to hear what he has to say and what his vision is. How confident are you about the leadership of the company . It is the challenge because he is the founder and ceo, and you have the benefit of being a have visionary, looking very longterm. Sometimes the market doesnt appreciate that. They want to hit quarterly marks. So can he balances longterm vision with the people that can execute daytoday . Of thewhat do you make tencent relationship and how snap might then if it from that, aere facebook doesnt have relationship with a big chinese player. Tencent is enormous, and the reason for that is that if you look internationally at Global Social media companies, they tend to be more monopolistic. If you look at russia, you look at china, you look at japan, there are individual social companies that dominate the market and are facebook on steroids. That is a very powerful position to be in. If you can partner with a company like that, you can get access to data Large Consumer , a base. The ceo recently left. How optimistic are you about twitter . The numbers are looking better, but we are talking about an industry that is saturated. It is. People are going to be looking rates, how many people are using the platform, what is happening around the world, bringing people to twitter who were purposely using it. But it is in a different place and there are questions for twitter that doesnt apply to other Companies Like cost control and profit margins, and that is going to be a challenge for twitter Going Forward. It is almost as if people have given up on user growth for them. It is going to be more traditional metrics that people focus on. Emily there is chatter about a deal for twitter. More recently it has picked up. What are you hearing . I dont have any unique information in that space. Like you said, people have been talking about it for years. Butcan bet on it or not, two years ago people thought it was a done deal, so who knows . We will wait until we see the news. Emily jake jacobs, thank you so much for stopping by. A story we are watching, sec chair jay clayton is looking into whether increased regulation of cryptocurrency trading platforms is necessary. Ofsays there is a level naivete in some investors in the Virtual Currency space. I think our main Street Investors look at these Virtual Currency trading platforms and assume they are regulated in the same way that a Stock Exchange is regulated, and as i said, it is far from that and we should address the issue. Emily coming up, Travis Kalanick testifying in uber day two in uber versus waymo. What the place when he took the stand. This is bloomberg. Emily it is day two of the uber versus waymo trial. Travis kalanick took the stand. He is the most anticipated witness at this trial, which is expected to last three weeks, and waymo went after him over the technology at the center of this case, the light Radar Technology that an engineer focused on at google. Is bloomberg tech reporter at the courthouse in san francisco. He joins us now. Im sure it was quite a show. What did travis have to say . It was interesting. There were jam sessions with Anthony Levandowski about what they were talking about before uber hired this self driving trucking company, which then brought down the house of alphabet on them. So it is what they were talking about. A key part of that was there were some notes where they were looking for intellectual property. So that is something that is very important. This general idea that uber was technologyfor laser to catch up with alphabet. That permeated all the testimony we have seen. So google is definitely trying to drive home that idea that uber was behind seven years behind starting, and was desperate to catch up when it comes to laser technology. Emily did it seem at any point that travis had been cornered or caught unaware in the testimony . No, i think travis is now the being deposed. At this was more public, but mostly short, one word answers. And honestly, there were moments of the fun travis. Somebody asked of waymos one attorneys asked him what a jazz session was, and travis went on talking about how when you have a Jazz Ensemble going and sort of describing that. If anything, he was fun and light. A couple ofning, times waymos attorneys had to impeach him and taken to the deposition and a slight contrast to what he said on the stand and what he said before, but nothing that made him look too bad. Emily lets talk about what happened leading up to this point. Bill gurley, was on the uber board at the time told waymo lawyers in august that his failure, traviss failure to tell the board critical information crossed the line of violating fraud and fiduciary duty, and had he been truthful, perhaps the acquisition of auto oto might not have been approved. Bill gurley said we didnt see this report, which was the cyber forensics report that uber commissioned to learn all the dirty laundry about oto before they acquired it. Gurley is saying that we have been fully informed about what that report found, that Anthony Levandowski retained a bunch of files from his former employer, the board might not have approved it. He went so far as to say that he would not have approved it and , which isrd fraud a totally shocking to learn because benchmark sued kalanick for fraud. This was a key moment where a board member felt kalanick did not fully inform them of the risks of the deal. Emily how many days are we expecting kalanick to testify . I think it would just be tomorrow. The judge runs a tight ship, so he was telling travis to be there at 7 30 a. M. Tomorrow. He will be the first witness back up, then he will be done. Emily our valiant uber reporter, thank you so much for giving us the playbyplay. The reviews are in for apples home pod, and the verdict is mixed. Being praised for its audio quality, but is being panned for its integration with siri, among the gripes being unable to call an uber or lyft, unlike the competition. Phone calls must be initiated with your iphone. Coming up, a look at Silicon Valley entrepreneurship from a female perspective who has been dotcomhome since the era. This is bloomberg. Emily Julie Wainwright has been an ecommerce pioneer has ceo of real. Com and pets. Com in 1999 , and most recently she is the woman behind the Luxury Retail marketplace, the real real. She has seen it all in Silicon Valley could she has been entrepreneur a top valley seen silicon become what it is today. Joining us is the ceo of the real real, julie, great to have you here. I am so curious as somebody who has seen so much in Silicon Valley. How much do you think has changed when it comes to the representation and treatment of women in technology and what hasnt changed . Well, you know, i actually started in tech after i left clorox in 1983, so a long time ago. At that time it felt like a meritocracy. There were other things going on that were a little head scratching, but it felt like, nascentit was such a industry, we were all pulling together and you progressed based on your work. Certainly it has changed quite a bit and some things have not changed. I would say if you look at the latest funding report, women are 3 of Venture Capital that goes to females, but it has been stuck there for over a decade and never has gotten higher. That is the bad news. The good news is that due to other activities, there is a light being shined on the bro culture, while i dont expect that much to change, at lease bringing that Culture Forward is a positive thing for men and women. Emily one of the things i examined in my book is the idea of meritocracy, and people often referred to Silicon Valley as a meritocracy, but it can often ignore the privilege at play for the winners and the larger systemic factors working against everyone else. Do you think it is a meritocracy . I think it has a chance to be. It is hard to make a generalization. If you look at the funding, i would say clearly not because women are getting even a little bit. We arent making headway. But i think there are certainly companies that have actresses that reward people and what they for what they do and not what gender they are or the color of their skin. When you are in a fastgrowing industry like tech and innovation and creative thinking workouts, then people have the ability to rise up faster than in something that is a Slower Growth company that may be basing promotions and Advancement Opportunities on other things. So when you are looking for talent, as someone who has greater insight to the into the challenges women face, how are you hiring and what are you doing to hire and promote women and defy the average of most Tech Companies . All right, so now we have about 1200 employees, so we are getting pretty big. 70 of my work force is female, so i think we are on that. Where we still fall down is on my engineering team. It has very few women, although we are adding more. And part of that is because because we dont get a lot of women applicants. I would say we dont look at gender when we are hiring, but by default, we are hiring more women. We are mostly in fashion and luxury resale, so i think it does attract a certain type. To be honest, we try to hire the best candidate. If you walk through our office, we have women, men, a great diverse employee population. Emily so we have been really focused on sexism late fee, especially with the metoo movement. Something else you touched on is ageism, and in Silicon Valley we imagine Young College kids on fancy campuses, which are actually company headquarters. How big of a problem do you think ageism is . It is huge. Again, you know what, look, if you are a woman and a woman over 40, you willover have a hard time getting capital unless you are in biotech. I am not an advocate of looking at the obstacles. I ordered is great your book today, by the way, and i wanted to plug it. I did order it. Emily thank you. Here is the story. It is harder for women over 40,. It is certainly harder if i was a black woman over 40 to start a business, raise money, especially when you are Getting Started and pitching to 28yearold guys, and if it is femalefocused business, they really cant relate. They look at you and say, oh my god, you are older than my mom. It is hard, but that doesnt mean it cant be done. And certainly it gets easier once you get past the concept stage and you have real business results, then the Playing Field equals out a little bit, but it is clearly harder for women it is harder for older women. It is harder for older men. You dont see a lot of men over 50 pitching businesses in the vc offices. Emily you have transformed the luxury consignment business at the real real. You know what it takes to keep a business functioning over years. What is going to make the real real standout with so many ecommerce and Fashion Companies trying to revolutionize the way we buy things . You know what, we are actually changing the way people think about consignment. We really are a change factor. We transformed the ease of consignment. We removed a lot of the friction. We can come to your house. You can send it in. You can face time with someone. We have taken away barriers of doing consignment. And because we take possession, authenticate, and make sure the quality is good, we have also taken away a lot of the barriers for buying consignment. 50 of our buyers have never bought consignment before and 50 of our consignors have never had never consigned before, so we are expanding the market. In many ways, we actually are not that different than other people who have change the paradigm, like airbnb change the paradigm. They have more hotel rooms and all hotel rooms together, they. They expanded the market, and we are expanding the market. One last thing, we did a relationship with Stella Mccarthy to sell their goods, and this is going to be a normal thing. You buy luxury goods, and then because they are high consign it. U ca having the first big luxury designer as a partner is actually going to help pave that way. We are excited. Emily thank you so much for sharing your experiences with us. We will be watching the real real Going Forward. Thank you. 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