Curfews have lifted in many cities but remain in new york as we go into another weekend of protests. A Record Number of National Guard troops have been deployed. The mayor of washington, d. C. , has asked President Trump to withdraw troops. For what it means i want to bring in abigail doolittle. Talk about the ups and the downs today. Abigail investors squarely focused on the jobs report that came in better than anybody expected. The estimate was for a loss of 7. 5 million jobs. Instead we had an ad of 2. 5 million, which is great news for folks in those new jobs and for the folks who did not lose their job. As for the stock market, of course we had this debate about whether stock should be up so much since the march lows. This Economic Data, you could make the case that stocks have been right. Who was such as myself questioning stock should be high against the real world is wrong although one month does not make a trend. Lets see if that continues. Some say there could be more waves ahead. The nasdaq 100 at an alltime high. Its best day in more than a month. Really helping out all the major averages. Up 3 . A lot of Risk Appetite flowing through stocks on the day. And this big jobs report, investors looking past of the social unrest, the feeling that it is over. Lets hope that is the case. Relative to the indexes out of the march lows, the faang index up going back to the idea of it was hard to stomach that giving the Economic Data and the jobless claims. It is hard to square that with the payroll report. The idea that stocks were right to climb. Lets see if it continues. Notable,ere was one slack was down 14 . We will speak to the ceo later in the show. Was that an anomaly . Was, and for fundamental reasons. Idiosyncratic reasons. They actually beat estimates. They put up a small loss. We are still high. Everyone thinks they are going to benefit from the work at home trend. Not as big as expected. They did withdraw the building guidance. Never a good thing. One takeaway might be the idea working at home, folks percent prefer zoom. They dont need the messaging software. And valuation. This stock, out of the march lows, it more than doubled. Investors had expected big things. You can see the spread between slack and the nasdaq, just to make the point, slack has been so far ahead of the market. Down day. G even though within the context of the jobs report, that rally on the very big jobs surprise. , thanks. Igail we will speak to Stewart Butterfield in just a moment. Another Company Working to accelerate hiring for millions of folks across the country, workstream is a hiring platform that works with 5000 managers to streamline the hiring process, Companies Like chickfila and more. Joining me on the phone is the cofounder and ceo. You in the data telling terms of what the big employers are seeing . Who is hiring . Who is laying off . Where are things accelerating and slowing down . Thank you, emily. I see a trend that many to opennts are trying up. Trying to hire people. We see the trend in health care. They have been strong. Those carryon to growth. Moreu can see, more and businesses and companies are trying to open up. We think that trend would carryon to growth. Potentially aout second wave of infection . What about what is going on with these protests which have left many businesses closed as they try to protect themselves . What about hiccups along the way . That is a good thing to ask. We have seen many of our current contactless hiring and screening. More and more people trying to sayrage video, trying to they can screen in a way that is safe and fast. Businesses and more trying to set up to keep people safe. We think that trend would actually carryon. People know there could be a second wave. People know they have to keep things going. They are trying to change the way they work and screen and hire people. They are trying to use more video, trying to set up workflows. ,mily all right, desmond lim ceo of workstream, thank you for joining us. We will watch these numbers and the trends within. Coming up, slack reporting record revenue. The stock plummeting. We will talk to ceo Stewart Butterfield about why. This is bloomberg. If there are any winners in this pandemic, one of them has been slack, a Company Helping people work remotely with more and more people flocking to the service as they work from home. After slack reported earlier but week, record revenue, withdrawing its billing forecast for the year, leading shares to plummet. Joining me now is ceo Stewart Butterfield. Investors are concerned perhaps slack is not going to benefit as much as they thought. There are High Expectations. What happened . Speculate would not as to what investors are thinking. The stock has fallen to the price it was last wednesday. Executive, i cant pay much attention to the shortterm movements. Especially in this market, theres a lot going on. Theres a lot of unusual volatility. Said the second half of the year is too complex. What clues do you have about what the second half of the year will look like . Stewart we do know theres going to be that compares to 5000 the quarter prior. We added 90,000 new organizations using slack. More than the entirety of last year. That will pay off. What we dont know is the strength of the headwind. The businesses we are affected by the crisis have felt that to a large measure. Airlines are figuring out businesses down. What we dont know is the trickledown effect for the rest of the economy. Todays job numbers are good. Many people are unemployed. A lot of stimulus checks or unemployment is going to run out. I dont think we have any good idea of what the world looks ore in september, october, november. Balancing that is tough for us. To, thes you alluded return to work will be slow. I have no idea when my kids are going back to school. When we are going to the office. It will happen. Hopefully there is a vaccine. When you look long term, do you see a point where slacks growth slows or even drops as we go back to whatever new normal is . Stewart i dont think so. Had 100 thousand plus customers before the crisis. All of those people were working the benefitnd found to slack and decided to pay for it. It is hard to tell. To offices, back they will still retain their slack use because it still has the same advantage. I dont think there is any real relationship there. Slack improves your ability to communicate. That is one of the challenges. It is not specifically designed for that. Have seenat we because this was so disruptive, and 0 of ceos would have said fromwould be able to work home inside of a week, but when youve got to do it, it is possible. There will be changes, we think this shift is generational. The adoption of email in the 1990s. We are just at the beginning of that. Are you thinking about reopening right now . You said september. Is that the case . Are you thinking about letting employees work from home forever like jack dorsey . Stewart there is complexity there. I cant imagine going back to normal. I think we will have a higher percentage of people working remotely. What we have seen, people want flexibility. I like coming into the office sometimes. I dont love my commute. Week. To come into days a or maybe we get together for planning sessions to come up with a plan and then if we have worked we stay home. It is too soon to know. Definitely not before september. More likely to extend that further. I cant imagine opening offices for those employees that would prefer to work there because they are going crazy inside their house or they dont have the facilities in their home. Going back to normal, i dont know if we ever will. It wont be soon. Emily you are incredibly active on social media on social justice. I have to get your thoughts on this twitter versus facebook call about the president s tweet and the call facebook made, or did not make, who is going to be on the right side of history . Stewart im glad i dont have to make that choice. More on tendency to be the side of twitter. I dont understand the longterm ramifications. Speech, i am the not sure the right response and what will be most constructive in making a positive change. The situation now is intolerable for every citizen. I dont think anyone is happy right now. Youve been vocal about these issues. You have created one of the most diverse workforces by comparison in Silicon Valley. Now we are hearing Companies Making commitments, doubling down. Are you worried it will be more words than action . Going off think script a little, i saw someones screenshot from hulu. Blackad done their lives matter post and somebody said you lost me as a customer. The response was, thanks for the update from the klan meeting. It sends a message, that is an intolerable opinion. You cant argue against black lives matter and be a member of civil society. I dont know that was the case when black lives matter entered the lexicon. The words do matter to some extent. I believe we have seen some serious followup action and slack is no different in that respect. We have plenty of work to do. I hope people are held accountable is through increased transparency and a shift in what acceptable, what is the minimum standard. As that increases, the pressure increases for people to meet it. Emily absolutely. And black lives do matter. Nothing partisan about it. Stewart butterfield, always appreciate your thoughts. Thank you so much for joining us. Coming up, we will speak with the cfo of zoom. Another pandemic supposed winner. Also soaring growth. Kelly joins us next. This is bloomberg. Zoom reported a 170 increase in firstquarter revenue and maintained a forecast for the year, expecting 500 Million Dollars in revenue. I spoke with the chief Financial OfficerKelly Steckelberg about how the company will love up to High Expectations the rest of the year. Kelly we are fortunate we added 500 customers in a market with greater than 100,000 of annual recurring revenue. These are customers that commit to annual or multiyear agreement. So we do have greater visibility than some companies do in future revenue. Indicated,as we have q4 could be flat because half of our Customer Base were on monthly contracts. Theres a little more potential volatility around those customers and uncertainty around how long the pandemic will last. Is there Economic Uncertainty . It is uncertain as to what the longterm economy looks like. That is why we are guiding flat for q3 and a4. Vaccine,til there is a and people are tired of zoom, at what point is that . What does it mean for zoom . Is there a point where growth plateaus because of a pullback . Kelly how could anybody be tired of zoom . We have seen, Video Communications has been integrated in all aspects of our life, social and personal. People have seen how effective it can make us. Maybe you dont want to spend all of your day on zoom meetings. We are going to see a mixed approach to that. We want to keep in touch with family and friends around the globe. If you cant with them personally. And we also have many products, we have this broader Customer Base we can delve into. Is aloudbased product great match with zoom meetings. We are looking forward to sell that as well as as people think about going back to work, we have zoom room, which is a Conference Room solution. That integrates nicely with zoom meetings. Its a great way to connect people from home and in the office as well. Emily you only see an upward trajectory. Kelly for the long term, yes. Said you wille not offer and to end encryption to for users. Have Consumer Reports asking zoom to reconsider. It created controversy. Is it something you will reconsider . Elly kelly currently we offer 256 encryption to all of our customers, free and paid. We are in the early planning stage of working on building an end to end encryption product which has not in done. We are excited about doing this. About who and to end encryption will be available to, we are trying to balance security and privacy of customers, and also the safety of groups like children. That is the consideration. Thinking about offering encryption for users we can identify. That is the balance we are trying to strike. Emily the ceo said zoom would work with Law Enforcement, which did not hit the right note given the protest. Is that something you will reconsider or clarify . There are situations where Law Enforcement is looking into unfortunate situation such as child abuse, we do comply with subpoenas and support those investigations. Emily talk about the progress in terms of security and privacy. I know youre lost some customers as a result. Have you had any government inquiries or investigations announced into the security and privacy issues around zoom you can share . Kelly security and privacy is something we have been focused on the last two months. We are two thirds of the way through the 90 day plan. Someincludes remediating situations. We set up a counsel with talent from around the Technology Companies that want to give us input. Doingas been available weekly webinars so we hear back from the community on what else we can do and answer questions. We are spending time individually with our customers and prospective customers to hear from them what we can do to further our privacy and security stance. This is something that will be forever integrated inhouse zoom approaches our design, thinking about our privacy and security with reliability as a product. Will foreverng we be focusing on. Cfo kellym steckelberg. Coming up, an hourlong call with Mark Zuckerberg left some frustrated. We will speak to one of the civil rights leaders on that call next. This is bloomberg. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Emily welcome back to bloomberg technology. Mark zuckerbergs inaction about one of the president s posts on facebook has angered employees, former employees and civil rights leaders alike. Participants on a call with the facebook ceo this week said zuckerberg cannot fully understand why a handsoff approach is a problem. One person adjoined that call is vanita gupta, president and ceo of the Leadership Conference of civil and human rights. I spoke with her earlier today. Vanita we told mark that those tweets and the posts the president made actually violated the four corners of their Voter Suppression policy. A policy we helped create with thought was insufficient and have been working to strengthen. Even on the data they have, the tweets violated them. On the looters and shooters comment, it violated their policy of incitement for violence. He disagreed and doubled down on that position and try to its plain his reasoning. To us, his reasoning made no sense. Actually, they approach trade a lack of it portrayed a lack of understanding in voting rules and the like. I think it showed why we think is so important for mark to have the right people in the room, have civil rights expertise in the room when he is making these decisions. Emily i understand there was a lot of pushback. Do you feel like you heard you . That he understands your position . Vanita i think he understands our position. I think he disagrees with it. I worry that he has a different view, as i said, about the understanding of what is happening in voting and what the existing voting rules are. But, i also think he heard a lot from his own employees this week who had a lot of things to say about all of this as well. So, you know, he is a smart guy. Hehink he knows that understands the position, but i dont think he fully understands voting in america, the rules. But i think he believes he disagrees. He views this through a partisan lens and somehow democrats versus republicans. But for the civil rights community, this is actually about the Voter Suppression policies, the nonpartisan efforts that we have built with facebook pretty painstakingly and over time, that basically he is not complying with. Emily how many times have you met with him and Sheryl Sandberg previously . Do you get a sense that their views are changing in a certain direction . I understand you have been meeting with them quite frequently. Vanita we have a fair amount of engagement. I would say less with mark, more with sheryl. In the past year, it has been a little bit more with mark. Team at the our Leadership Conference and other civil Rights Groups have been working with the company on a range of different issues through the civil rights audit. There have been some things they have made progress on. Weve made progress on the fact they have been allowing for unlawful targeting through their ads and they stop doing that. They settled ongoing litigation. We helped craft their policy to prevent misinformation and interference with the census. It was a pretty robust policy. We have pressed various times around the enforcement of that policy where they have not caught major disinformation that they subsequently have taken down after i had to flag it for them. Weve had some progress, but i would say on voting and elections, they have moved far too slowly and then have failed to really understand what they are allowing on their platform and the harm it creates. This isnt about free expression. I worked at the American Civil Liberties union. Backer of the first amended, but the company chose to develop policies after 2016 to fight Voter Suppression, to fight online hate. What we are seeing, what i thought was a sense to define the values they want to embody in the world, but by allowing that sosts to remain clearly violate their own policies, they are undermining the very purposethat they originally set out with to prevent those kind of manipulations of the platforms. It is very alarming given what we have at stake and the cost it could come with for Fair Elections in the United States. Emily what did you think about the stent twitter has taken . Because obviously they will have to make more complicated calls heading into an election and a president who continues to be very vocal. Vanita we have uplifted twitters stance. I think it is really important that jack dorsey made the decision he did to enforce his own standards and take action against the president s tweets which contain latent lies about voting methods and procedure, and inciting violence. Twitter chose a different path. I think it is unfortunate, may more than unfortunate that Mark Zuckerberg criticized twitter for taking that stance. But they clearly chose an art seeking to define themselves as a company that cares about democracy and i think its reflected in twitters both adoption of these policies, but born poorly, the enforcement of them even against the president. Emily do you have any concerns the moves twitter has taken could inflame the president more and mobilize his base . You see the president almost going to battle with social media now, especially with this executive order. And tensions are only going to start running higher. Vanita i my view of this is that the companies are choosing to stand up for certain principles when they adopt policies and community standards. And the demand from all of us should we these companies are consistent in their application of these policies regardless of whether you are me on the street or the president of the United States. And twitter took action. I think these issues are only going to get more and more intense. I think the president is likely to get more and more willing to lie about voting methods and procedures and to seek to suppress voting as he gets more freaked out about the potential of a loss for himm. I think it is incumbent on anyone who hears about Fair Elections and any company that , that they them directly have an equity on this, to be consistent on their actions and not create exemptions for the president who has a really big bully pulpit and confront to undermine any ongoing effort to fight Voter Suppression on these platforms. Emily will you try to meet with Mark Zuckerberg again . Is that in the works . Vanita i think the company is so powerful and has such important play no democracy, that has frustrated and annoyed as i am in as much as i would love to walk away, it is too important to our democracy, to our economy for me to feel responsible for walking away. Well continue to push. I hope facebook employees will continue to push. I think they have a very important and powerful voice. I think there are other people around and stakeholders that need to push harder to make sure that mark, he is clearly making these decisions himself on some of these really highprofile matters and actually has the right people in the room as he is making them to understand what is fully at stake and why creating certain special exceptions for the president or anyone else threatens to undermine all of the work we have tried to do with the company in the last several years. Emily when you say making the decisions himself, you get the sense he is not taking input from people like Sheryl Sandberg . Vanita my sense is he has Sheryl Sandberg and his policy team in the room, but that policy team and sheryl, they are not civil rights experts. They dont carry any understanding of what Voter Suppression looks like, what the voting laws are like on the book. He does not have the civil rights expertise that is also helping to shape his decision. They may be providing input, but he is certainly making the final call. Emily vanita cooped up, president and ceo of the Leadership Conference on civil and human rights. Coming up, we will hear from longtime venture capitalist and tech blogger for his thoughts on facebook. One hint hes not happy. Thats next. This is bloomberg. Andily facebook employees civil rights employees are not the only ones unhappy about Mark Zuckerbergs stance on President Trumps post. Longtime venture capitalist om malik left facebook and now leaving instagram. He says i left facebook over two years ago but remain trapped in zucks hell on earth. It had a major control on me for some stupid reason. No more. I disagree with the company and its leaders so much that i will not spend any of my attention or energy on its platforms. Om malik joins us on the phone. Om, you are not asking everyone to leave facebook, whatsapp and instagram. Why . Om im not asking everyone to do what i did. Im asking them to follow their conscience. If they believe they disagree with the company, they should do what you would do in a democracy, just leave. Just like you vote against a person you disagree with, you leave the platform or the company you disagree with. I think it is called civil disobedience. In the digital domain, we can just leave and i think we should do that if you disagree with the company. I do, and thats why i left. Im not going to impose on other people but i would ask people to think hard, do they want to support a company which constantly undermines the audiological the ideology and idea of democracy and fairness . It is changing the rules of the game all the time. That is the biggest challenge. They are not consistent. Theres a lack of ethics in that company. Thats how i feel about it. Emily to your point, zuckerberg has said he doesnt want facebook to be the arbiter of truth, but facebook does post certain stories, just not political speech which some have said facebook is holding regular people to a different standard than politicians. Perhaps even a higher standard for politicians. What do you think bask facebook should be doing in this situation . Om i dont disagree with the fact this is a difficult situation, whether it is facebook, twitter or any other social platform. I think every single platform has made their bed by betting bi g on making popularity and engagement as the cornerstone of their existence. By doing so, they cannot make the right decisions. Anythingnyone can say with freedom of speech on the platform, but it is within facebooks rights to promote it. What they fail to recognize, is they have a massive platform and they continue to emphasize the are sometimes untruthful and mostly hurtful. I think that is what they are failing to do, their duty as a platform. This is not being in arbiter of truth. It is about how good a platform you are and how well do you police it. I think you and i have talked about this over the last two and a half years. They continue to fail the job of a platform, just to make sure that misinformation does not get spread. It is not about them being censored, it is about making sure that the right information is amplified and not bad information. I think at times, theres a lot of misinformation which is getting amplified on the platform. Just like during the elections or just before the elections. They refused to acknowledge the fact their system was being used by foreign powers. I think that is the biggest challenge i have with this company. Emily you do continue to use twitter, which did take a stand on this particular post and a couple of the other posts. But why do you think twitter is doing so much of a better job . Certainly, if you look at twitter, you also see misinformation, you also see things that are confusing and out of context. The president has certainly pushed the boundaries perhaps even beyond where twitter has to draw the line. Om i think just to be clear, i am not letting twitter off as well. I think they continue to miss the mark as well. I have been very consistent about that as well. That these guys actually have to do their job. The only reason i am on twitter is because i do believe that they are actually willing to listen and take some kind of action. Im not completely satisfied with the way they are going, but at least jack is willing to listen and take some action. I think there will be more willing this to understand that with the times. Can i also say emily go ahead. Om i said ive reduced my time on twitter as well. It suffers the same problems that facebook does. Emily now, i want to get your thoughts on the overall impact of the pandemic. The health crisis, economic crisis, social crisis on the tech economy. We have seen Huge Companies lay off huge swaths of workers. How much do you think this will shape Silicon Valley and what does Silicon Valley look like coming out of this . Om never wrote about this very recently. Im of the belief this is a reset. I dont think people actually understood how big of a shift it is to work the tech economy. Im even more bullish about technology and its features that i was at the start of the year because the pandemic is creating new behavior and making us these new what are behaviors in a very short time. I think we may see some nearterm job losses. We may see a lotbehaviors in a. Of startups gosee out of business. But at the end of the day, technology is going to come out much more stronger, bigger and more impactful after this pandemic is under control. There is a time, moral implication which of startups go out oftechnology has created asa result of becoming more dominant. You have to actually be thinking not just about growth and profits and constant engagement, which is what Companies Like facebook do, but how does what we do impact everybody else in the rest of the planet . I think that is a conversation Silicon Valley needs to have much faster than it has in the past. Emily all right, a rebirth and a reset. I will remember those words, om malik of true ventures. Always good having your thoughts on the show. Thank you for joining us. Coming up, racial inequality at the forefront. We will speak with the former xerox ceo in a moving conversation next. This is bloomberg. Emily todays jobs data shows black unemployment climbing to the highest rate since 1984. This amid an increasing call to reexamine inequality in the United States. We talked about the prevalence of racial inequality with former xerox ceo ursula burns, the only black woman to run a fortune 500 company on a longterm basis. Take a listen to that conversation. It is a clearly top of my concern list, but i entered this debate during the, at the start of the coronavirus as optimistic, interestingly enough. Optimistic about maybe coming out of this dysfunctional time in a better position that we entered. That meaning that people, companies in particular, paid attention to what we now call these essential workers. We start to understand what an essential worker really is. The guy delivers food, the guy who stocks the shelves, etc. Im hoping that knowing a lot of the black and brown people in the United States work at the lower end of the socioeconomic employment ladder, im hoping we can use this time, total disruption, pandemic, racial unrest, continued socioeconomic imbalance, to reach the whole conversation about how black and brown people fit in the employment ladder, but also how Companies View th e ese essential workers. And how important they are, how we have to pay them, how we have to nurture them. Im hoping it is an opportunity but i dont know if it will be. You aboutimistic are some of the statements that are being made by corporations . Im interested, do you think they feel authentic acrosstheboard . Ursula many companies, many more than i have ever seen before so the vast majority are speaking out, many more than i have seen before. Aboutng to feel uneasy the state of america in this space. They are starting to realize this is fundamentally unsustainable. Its definitely unfair and wrong. And that the tilt is starting to come off. We are starting to go out of balance and it is really important that the rhetoric in the administration which is usually negative and definitely demeaning, that has to be offset by some real action. Funding groups, changing the employment practices, being affirmative in how they actually address their employment needs. Being affirmative in hiring black and brown people. Being affirmative in progress in them through the company. Being affirmative of how they look at the csuite. Without that passion and that drive, i think we will not make progress. Companies are starting to realize more and more not making progress is not sustainable. They will have to do something. The good news is it is kind of like it all came together at once. It is not enough to make change, but at least if we get enough of the crescendo of voices, that will keep the action going. This is like the first time a black man has not been killed by a policeman. It is not the first time. It has happened before that, before that. Im hoping this time we dont let this sacrifice of this human go unrequited. It is important to that Company Start to stand up and we have something to do with dissolution. What makes this seem different to you that the outcome of this is going to be different and more positive than maybe what it was in the past . Ursula a number of the broadbased coalition that is now starting to speak. Ittlee dont get my l optimism as overjoyed optimism. Dont get me wrong. I dont believe what we are hearing today is actually going to drive change. We have to stay involved. All the voices in the street, all the voices in the news media, all the voices of Corporate America will have to stay involved to actually see true change. The only reason why i am a little more optimistic is people are getting fed up with this current state of play. Emily ursula burns, the former ceo of xerox. Powerful words to end on and to remember through this weekend. Im emily chang. This is bloomberg technology. We will see you on monday. This is bloomberg. David a nation recoils in horror and the markets look the other way on hopes of a brighter tomorrow. This is bloomberg wall street week. This week, the former secretary of defense leon panetta. I think this is the time, frankly, not to threaten, not to bully, not to yell at each other, but to do some listening. David the chairman of the Securities ExchangeCommission Jay clayton. Jay our markets have transformed to a position where many opportunities are in the private market. David former treasury secretary larry summers. Larry i think we are taking substantial risks of a second wave of a