emily: i'm emily chang in san francisco. this is the best of bloomberg technology. coming up, what a week it was for big take earnings. the breakdown the highlights and low lights. plus, truly historic is how elon musk is describing tesla's third quarter. they report their first profit in five years. can they do it again and again? and why the head of softbank was a no-show in the desert, and what this means for the future of ties to saudi arabia.

but first to our lead. it was a huge week in tech. it started with a surprise third-quarter report from tesla. along with microsoft, alphabet twitter and snap. but we have to kick things off with amazon after the bell. >> if you look at the revenue, miss, especially on the guidance part of things the spending part , we are not worried about much. we expected spending pressure across the board. the biggest hike issue is one of the uncertainties. from the business perspective there two areas for weakness. one is whole foods, the physical stores. there is one area where may be the physical push is not growing as fast as we expected. and the second area is international growth. that slowed down materially, not to mention a change in the holiday season for india that pushed out sales, but that

becomes a worry as well. so if you take those two things out of the equation and a look at the advertising division, they did fine. there was slight growth rate declined for what they did the last couple of quarters, but in what we are seeing so far, these are the 2 areas. fine isnd you know that not acceptable for jeff bezos. what do you make of this? >> we are seeing strong growth. i don't think jeff bezos has anything to worry about in areas like private label products, where amazon is placing a lot of value. and on commodity products. amazon basics is their behemoth. we saw 60% year over year growth in non-commodity amazon private label products and huge growth in advertising revenue. i mean, up to 10% of all product

searches in amazon come from a sponsored search. and that is up from 3% in january 2017. there is huge room for growth. emily: let's talk about that. amazon is a distant third, but could catch up. you will hear what was said about this in the next segment, but can amazon really get there? >> retail is a big segment for google. and now we are seeing larger brands warming up to amazon a lot more. 100 plus million prime members is too big to ignore. so now what happens, as sales shift so do the dollars with it. amazon is targeting 2 buckets, the search bucket and the trade promotions bucket. so they do get to benefit from that shift that is happening from bigger brands. and they can deliver. you are advertising the product

you know how much the sales were and all that so the , targeting becomes better. google needs to go the opposite direction. partnerships with commerce. and we think google should be more aggressive in e-commerce and of course take the cloud stance more aggressively when amazon is encroaching on them from an advertising standpoint. emily: in the meantime, costs are going to go up. amazon is increasing wages and opening hq 2. how will that cost impact coming quarters? >> i think they have a ton of room to grow and offset those costs. again to piggyback off of what , you were saying, 50% of product searches occur on amazon, not google. like the actual e-commerce product searches, stuff people want to pay for. as they invest in those tools and costs go up, they will see a much higher spike in the return.

emily: talk to us about what is happening globally. there is a turf war in india in but also in other parts of the world. is tariff uncertainty causing guidance to go down? there is an indirect impact from sellers and what it means for third-party sales growth. so hopefully we will get more details on that but that is , definitely a concern. emily: the call is scheduled 25 minutes from now. what do you want to hear? >> how the investments they are making in their advertising platform are paying off. international growth, i agree there is a lot of room for opportunity and a lot of risk if they don't execute properly. and i would love to hear more about how they are interacting with the rest of the ecosystem. i think that both retailers and

brands are probably very reticent about what is happening right now and a very nervous. they need to create more of an equilibrium like google has done in that market. emily: we have a holiday season coming up increased postal , rates, sparring with the president, how are the next few weeks -- the next few weeks are critical for amazon every year, but maybe this year in particular. >> especially given the guidance. morestreet will expect than what they are guiding, especially with so many more prime members versus what they had last year. what it boils down to is are they able to manage the cost in terms of capacity to deliver these products and meet those numbers? because we did see that created 2015.ue in 2014 and and remember amazon used to talk , about profits will ebb and flow. they were flowing. now guidance is suggesting there might be some ebb because of

rate hikes, postal rate hikes. the things you have talked about. emily: apple ceo tim cook touting the importance of privacy and legislation to protect it. speaking in brussels, cook slammed tech companies that monetize their business by collecting user data, facebook and google. in the meantime, the facebook ceo mark zuckerberg defending his ad-based business model saying he is aware facebook needs to do more to protect user privacy. coming up, tesla investors cheer their best ever quarter. but wall street is not ready to drop its caution stance just yet. can elon musk keep delivering? that is next. newsf you like bloomberg check us out on the radio, , listen to us on the bloomberg app, bloomberg.com, and sirius xm. this is bloomberg.

emily: tesla shares soared.

this after reporting third-quarter results on tesla wednesday. usually gives two weeks notice when earnings will drop, but this time the company gave barely two days. as elon musk hinted, tesla has made money. the net income was $312 million. analysts expected a lot. and get this, positive cash flow 881 million. tesla made an average of 4300 week with 455,000 , people expressing interest. if elon musk can keep selling that production, big revenue and real profits. we break it all down. >> the big thing is obviously they are profitable. huge, the first time they have been profitable since the third quarter of 2016. so it is their third profitable quarter ever in their history, but demand is still really strong. that is the surprise. they pulled out all of the stops

in 03 and they would be no more demand was the theory, but the deposit number is still 900 million in deposits. even though they have worked through some reservations, but as more cars get on the road more people are ordering them. is, can theyestion do this again and again? will it become routine? >> this is what we are watching for. there is a lot of speculation these numbers might be frontloaded, but this was a huge beat as we all saw. elon said, we expect to be profitable going forward. if they can repeat this going forward, it is a huge win for tesla and shows the power of the brand more than anything. emily: normally tesla gives a significant amount of notice for earnings. this happened in less than two days. on monday night we found out tesla would be reporting today. they preferred to have more notice, so is there anything unusual about that? [laughter] >> to be fair, tesla always

reports earnings on a wednesday. next wednesday is halloween. we were asking, could you please not do it on halloween, some of us have kids. so we were actually expecting the earnings to come next tuesday or possibly depression to november, but clearly they had a good story to tell so they pushed forward. and everyone was expecting this as good news. emily: let's take a deeper dive into the numbers. the company said still on target x cars thiso many year, and of course we are always looking at the model 3. when you look at the actual delivery numbers, are you liking what you see? >> yeah. i mean, one of the big things about the delivery numbers is all of the models were strong. model 3, model s, and model x . we haven't even seen the base model 3. that is the key part of looking forward. when the base model 3 comes out, a lot of consumers will want

this car at $35,000 or at the lowest price. there's plenty of demand for tesla. it is a brand that has so much power. it is almost like a lifestyle thing like google or apple. as long as consumers are still interested, they will do well. emily: after hours trading up 14%. this is after a very tumultuous quarter. elon musk's run-in with the sec after he said he had funding secured to take tesla private. and tesla and elon musk have been fined $40 million and he is stepping down as chairman. so what are the outstanding issues with the settlement? a judge approved it, but we are waiting to see who will become chair. >> then the board has to of point 2 new independent directors. we do not know who those folks will be either. the board has been mum about the search process. it is unclear if they're leaving it internally or contacted a search firm, but that will change the dynamics of the

board. emily: in the meantime they're , supposed to be monitoring his tweets and communication, correct? >> that obviously has not kicked in yet. emily: i'm curious if you remain concerned about a london elon musk's other behavior? is it something you are watching? >> it is something we are watching, but i think the reality is tesla has a lot of leeway as a brand when it comes to consumer perception. it is under scrutiny always, but a lot of consumers do see this as elon is different. as long as he doesn't do anything egregious, we can take that as long as he is building these beautiful cars. and hopefully the quality comes along with it. so i think the brand does have some leeway. well tesla also got a , boost this week from citroen research, one of the most outspoken short-sellers.

on tuesday, ahead of the announced he is now long on the company this quarter writing "like a magic trick when everyone is focused on elon smoking weed, he is quietly smoking the whole auto industry. " last year, they sued tesla and musk from market manipulation. caroline hyde and scarlet fu caught up with left and asked what changed. >> elon musk has made such a sideshow of himself that people started to forget about the underlying business. all the headlines are about how thatmusk said this and then you read about the car. , as a short seller i am always rechecking my thesis. a few weeks ago i was short. a few weeks ago, i was looking and i am thinking this car is dominating. the model s is dominating.

they are completely smoking the competition. can they make money? i started to go deeper. and i realized of that for all these years i didn't really understand the type of story. musk is uber tesla bull, but i think the short going into this quarter, knowing that he made earnings a week earlier right on top of ford's earnings, and knowing the company is finally hitting stride with production of model 3. i see the short interest and i am like, oh no, that is wrong. >> so using the new date for earnings is a positive sign. where are they going for capital needs for tesla? there is always a worry that they may have to up supplies. are you not worried about that anymore? >> we will know in about 26-27 hours? see how much they generate free cash flow?

for years, i have doubted musk. there are so many things that tesla said they were going to do and i laughed. so sure enough i think the guy , is the quickest settlement ever with the sec. he got them to work on a saturday. when he said they would be cash flow positive this quarter, i am not going to doubt it. i will wait and see. >> we need to put tesla in the context of the bigger automotive picture and to demand as well. auto sales have plateaued. they peaked in september of 2017 of 18.4 7lyzed rate million, so would tesla be subject to the same industry headwinds, cyclical headwinds? >> no. that is the amazing part about it. that is what surprised me. not only is tesla eating from bmw, mercedes and audi, but also from toyota and honda. people pay more money to drive a tesla. it is a revolution i underestimated, the way people are buying these cars. so the numbers you are talking

about are 100% true for other automakers, not for tesla. it is what it is. >> talk about getting out there, running the models -- >> this is where it gets tricky. the real question, as a short seller i say at the end of the day it is a car company. but we are facing estimates on old-school manufacturing. the more that you read, you see by not having as many parts with dealer networks and unions, where does this model take you? you don't know. munro and associates out of detroit say they can do over 30% gross margins on the model 3. i am sure they will do more on a crossover. so we do not know. that is where it has become a black box. emily: that was andrew left of citroen research. still ahead, we stay on earnings and break down the main takeaways from alphabet out thursday.

and later, twitter surged the most in eight months as they blew past their forecast. why advertisers are spending more. this is bloomberg. ♪

emily: let's get back to this week's main headline in tech, earnings. alphabet results after the bell and i spoke to the alphabet ceo. take a listen. >> i guess what i would start i don't think it is a , coincidence that you see a lot of big cap technology and communication services missing on the revenue line. a lot is due to currency with the dollar strengthening significantly over the course of a quarter. i think that when you look at the mess, it was by a hair. it was a miss, but a very small

miss. if you round, it was not really a miss. it was a good quarter. it is amazing to me how very few people seem to also be focusing on the earnings beat, which was substantial, aided by a lower tax rate, for example. but over all i think this was a solid quarter, above 20% growth again. and it seems the trends are intact for the company to be successful or number of quarters to come. emily: there is concern about amazon on google and facebook's tale when it comes to digital advertising. i asked if she thought about amazon as a threat. she said whenever new technology -- inventory is created that seetes interest we would digital advertising, so this has expanded the opportunity to tap into digital budgets. bob do you buy that? , >> that makes a lot of sense

on where they are trying to go especially with all of the , things around youtube and content available. the other thing, she mentioned briefly some of the r&d costs were higher. they have investments in hardware and youtube services, youtube tv for example. and i think that those are interesting opportunities moving forward. at the end of the day, it is getting expensive to get to the right people and get the services out, hence the acquisition costs are going up. that is an issue. but like the gentleman said, it hit it, but barely missed. and the opportunities moving forward for them are still very strong. the concern is the regulatory environment. what will happen? there are a lot of clouds over google/alphabet and those are the concerns that people are thinking about and that we have to think about long-term. emily: privacy, fake news, being called to testify before congress and not showing up, all of these are concerning. and i asked her if privacy concerns are having an impact on

advertising, and she did not really answer that question. i also asked about china and google's plans to reignite its search engine in china. she told me, at this we continue point to help and support chinese users from google apps and google translate. we are not close to launching a search product in china. and given the share scale of the market we are making sure we are , doing the right things for the long-term. scott, what do you make of that? >> the way that we thought about this is that while that would be great from a financial perspective for google to reenter china, the reality is, especially given the growing tensions between the two countries and their governments, we see that as a long shot particularly over the near to particularly over the near to intermediate term. , it is one of the reasons why we upgraded shares of buying baidoo.

-- baidu. it has been an overhang for that company and its stock. we don't think that is viable at this point for google to reenter china. i think they have far more priorities elsewhere. i think just the political pressure and complexity, cost, and risk of failure are so substantial i think continuing to invest in things that are working, things like waymo, those are the things that google etd out for bet -- alphab should be investing in right now. emily: do you think that google should have not dropped project may then and continue to work with the dod? she talked about how they believe it is important to work with the military and laid out the ways they are doing so. but when you talk to jeff bezos and microsoft, they are saying our country needs to be defended, so we are going to work with the department of defense.

>> my opinion on that is i think that they should have continued to talk with the government about the contract. you are talking about a $10 billion opportunity, which would have been tremendous for google and its cloud business, which they have been investing in, but that could have been a game changer. and i am not clear on what the opposition was in terms of moving forward with that contract. you pointed out good rationales that other companies have articulated. no i think it was a mistake to , walk away from that contract, particularly at this stage. bob google also has some , business being done in europe and facing the $5 billion record fine for antitrust issues and she -- for the android issues i should say, and she talked about how that remains to be seen how that will play out. how much do you think that will hurt them? >> i do not think it will hurt

them very much financially, because there are few alternatives. in some ways google can make more money because the phone makers will have to pay google for services they gave away because they have to be offered as an alternative. in a weird way i think it actually helped them. in the long-term the financial , impact i think is small. most of these controversies in the near term will not have a big influence on them. the bigger question is as gdpr gets enforced, as the u.s. develops whatever equivalent it will create, as other countries do this, how does that fundamentally impact the business model of what google does around customized advertising and data tracking? again, none of these things will impact right away but longer-term they are issues that have to be addressed. emily: coming up, the softbank ceo dropped out of the saudi

conference of this week and what it means for the future of their vision fund. and we are live streaming on twitter you can check us out at , technology and follow our breaking network tictoc on twitter. this is bloomberg. ♪

emily: welcome back to the "best of bloomberg technology." the killing of journalist jamal khashoggi caused plenty of big names to pull out of the saudi arabian investment conference this week, that includes masayoshi son of softbank. the move came after saudi officials admitted to killing him inside their istanbul consulate. son met privately with crown prince mohammed bin salman on monday, but his withdrawal from the conference added to the list of high-profile exits that included the softbank coo. saudi arabia is one of their biggest backers. they have already committed $45 billion to the first fund. and and they have promised

another $45 billion to future funds. we talked about this with the founder of constellation research. dropped out inly a more gentle way compared to some of the other business leaders who left. it was a compromise. they met on the sidelines of the conference, but did not go to the conference itself. however a lot of softbank , executives remained at the conference. >> we have seen many top executives opt to stay away from the conference, but have continued business relationships with saudi arabia. do you think that the turn of events could change the relationship between foreign businesses and saudi arabia? or do you think it will eventually be business as usual? >> you know, i think that the money is too hard for people to turn away. hoping thatle were it would blow over, but when it

didn't blow over and it got worse, people got scared. a lot of startups have a progressive viewpoint. to have this money impact their perspective of what is going on is a challenge. but the double edged sword is that for saudi arabia to progress, they have to make these investments. so i think it will be a lot of difficult decisions for startup entrepreneurs and investors. sara given the scrutiny, what , are the chances softbank will go somewhere else for the $45 billion? for the next fund. >> it's hard to say if this point. it will be interesting to see if an argument gets made, much as has happened with china that softbank can influence saudi arabia somehow from within and help it become more progressive in certain ways. willthink a lot of people be starting to tell a different story about saudi arabia. >> it is worth mentioning that

saudi arabia has a long track record of investing in technology and it has a long record of human rights violations. so is the result of this going to cause entrepreneurs and startups to look more critically at where their money is coming from, especially saudi arabia? >> i think we are going to see a transformation long-term in saudi arabia. this is a lesson learned for the saudi government to recognize their actions have a huge impact around the world. and investors will take note to see see what reforms take place of not only how their actions affect their investment pieces, but how those actions affect perceptions of doing business in saudi arabia. >> you have been speaking with venture capitalists and startups, what impression are you getting from venture capitalists? is there any instance of a start up turning away money? >> i have heard there is a

startup currently weighing a term sheet from softbank because of these allegations. a term sheet they probably would have accepted without much thought, they are wondering whether to take the money or not. and i think more broadly that the startups will ask more questions about the investors their own venture capital , investors. that had not been the case previously. >> and we are seeing tech employees have more influence over their employers. one example, the google protests that caused google did not renew a defense contract. might we see a revolt within companies that used to take money from certain sources that are deemed unethical? >> we definitely see that. at half moon bay, the top conversation was do we accept money from countries that might not have the same values or views on human rights or ethics, there was a big discussion today about what happened. and i think you will see that. there are a couple of companies, softbank,lay with the

they are seriously doubting the term sheet. they are wondering if they can take that money, if they can put some conditions on behavior as to what to do with the money. i think we will see that. the other piece we may see with softbank, if they use that last piece of the vision fund, there is about $15 billion that accessy say that is just -- excess expense and not recognize that revenue for that fund. actions like that might soften the blow. emily: coming up, twitter surges. the social media platform brings in a strong third quarter. how it is doing that when fewer people are using the platform? / . that is next. this is bloomberg. ♪

emily: twitter surged the most in eight months, sales blew past forecasts.

despite the numbers, monthly average users decreased by 9 million. that means the social network averages 326 million mau's. and this comes as twitter continues to purge fake accounts. we sat down with the cfo on thursday to talk about third quarter results. ned: we are challenging more than we used to so the 9 million number is something jack talked about in front of congress. back in september. we have become more sophisticated in our understanding of how people create suspicious accounts so we , can detect and prevent their creation or stop them after they've been created. how many get through depends on how many of them should get through. we test far more accounts that are suspicious and we understand the behavior. just because an account is created on a web browser in a certain country doesn't necessarily mean it shouldn't be on the platform.

there's a lot that goes into it. emily: as a result of this, you have said monthly active users will decline. how much further will they decline? ned: we said that would continue in the fourth quarter because of decisions we might make around sms contracts we have with carriers. we do not forecast mau. we have done that the last few quarters because we could see a decline coming. and we wanted to share that with people. when we step back and we think about our work more broadly, we do not want to be constrained. we want to prioritize health because it's a critical growth factor for the company to make sure that twitter is a safe place for you and me and for the people that should be on the platform. and that we are removing suspicious behavior whenever we can. sometimes it affects disclose d metrics. sometimes, they were largely

inactive. it doesn't affect the matrix is -- metrics as much. emily: yesterday, we saw tweets promoting fake bomb scares, fake of conspiracy theories. how is this still happening? ned: we still have work to do. work to improve the health of twitter. there are so many ways for us to address these challenges and how they create bad behavior on twitter. one of the great things about twitter that we are able to benefit from is that because it is public and open and in real-time, we find things that are corrected by the platform itself, by other people on twitter who say that's not true. you may believe that but i believe something different and i want to tell you what i believe. the fact that the platform is open makes it different and allows us to take a different approach around policy and enforcement than others make.

emily: we are in a time of divisive politics. just this morning, the president tweeted "the anger we see is caused by the false reporting of the mainstream media. it has gotten so bad and hateful that it is beyond description. mainstream media must clean up its act." in the past, you've said he is an influential person, is the president getting a pass when it comes to what is true and false, what is hateful and not, what incites violence because he is the president? ned: twitter is public and open and real-time. those are things that allow people to see what a public figure will say regardless of their party affiliation, where they are in the world. they can learn from it, respond to it, observe how others respond to it. we believe that allows for a healthy public conversation

that allows people to have more information than they otherwise might, whether it's in the states or around the brazilian and mexican elections. it's an important part of our purpose, to serve the public conversation. which means for people, they will see what other people are saying. emily: twitter has been clear about the need to do more. jack dorsey has been clear. how many more people are you dedicating to this problem? ned: health is our number one priority. we think about health, and growing our audience and the sales as our biggest priorities. i don't expect those to change much as we move into next year. and i think because twitter is public and open and real-time in nature, we can leverage those characteristics and accomplish a lot through our services team and through machine learning that we use to amplify our policies and the twitter services team. emily: are you going to add more people? growing and been

adding more people. we are growing 15% as we invest. i would expect this to continue. it's not against anyone priority, we want to be able to grow the business and execute the opportunities we see. emily: the twitter cfo there. now to discuss this is selina wang. deborah. what do you make of these numbers? you know advertisers are coming , back and spending more. but monthly active users keeps going down. and in some ways it can be difficult to see the progress, even though twitter says we are challenging millions of accounts every week. >> absolutely. he just talked a lot about health. my viewpoint is if you are going to get healthy, you need to lose some weight. in the case of twitter, losing weight is like losing a few million users. over all, i think that is a positive step. i think the focus on the daily active user number is important

and needs to be done. and i think that the steps that twitter has taken to make its products better, to reprove itself to advertisers are starting to pay off. once this weight loss is gotten done we will see users rejuvenate again. and then we will see advertisers come right along. emily: twitter does not report daily active users. and you do wonder why. >> absolutely. the fact that they don't report it means there is something they are not comfortable with. ned did repeat that it's below half of what the mau is. so there is a lot of room for growth. something that was concerning, dau went single digits for the first time in several consecutive quarters. so that means the healthy cleanup efforts is hitting their daily active users. and that is the number that really matters, the number that

matters to advertisers. and in showing true engagement. at some point, they need to show that these cleanup efforts are not going to let them monetize better, but actually draw more users to the platform. emily: the cleanup efforts are incredibly important. what is happening on twitter is driving the national and international conversation. but, once twitter gets its act together, are they going to add a significant number of new users? this the size of twitter? or isthis the size of twitter? is this it? 300 million users. >> you know, it is hard to say if this is it or not. but i think what we are seeing now is twitter finally coming to terms with what it really is. it is not a social network that will be the size of instagram or facebook. it's a platform for real-time news and engagement. and to the extent that it can continue to promote that uniqueness from the other platforms, that will draw users

back. i think that this constant back-and-forth of how many people does twitter have, they just need to embrace what they are. if it is 400 million, whomillion, if they embrace they are advertisers are going , to embrace that as well. emily: snap reported numbers and all eyes were on user growth. they reported the number of daily users fell for a second consecutive quarter. it has on to almost exactly in 186 million, line with estimates. forecasting trend continuing and weaker revenue of $355 million estimate. this coming as snap struggles to fend off facebook and instagram. the story feature has become the preferred for millennials. can snap reversed the trend? >> that's a big question. honestly both snapchat and , twitter are in a similar

position in many ways. they both saw user decline. however better-than-expected , revenue. that's a positive thing. similar to twitter, we've got a situation with snapchat where the daily active users have declined yet again for another quarter. this is definitely concerning to advertisers. and the fact that snapchat has been able to monetize those users to better expected extent is good. but that is probably not going to continue forever. i think we will have to see snapchat do more to restart that user growth. emily: how will they do that? >> one of those things could be finally figuring out android. the android app has been a thorn in their side for a long time now. i think that once snapchat figures that out and relaunches a solid well performing android

app, they will get more users who use android phones, especially in markets outside the united states were android is really popular. hopefully they will figure that , out. it remains to be seen how quickly. but hopefully they will figure it out. emily: still ahead, women in the workplace. a new report shows women continue to be underrepresented at every level. why the movement seems to be stagnating. this is bloomberg. ♪

emily: spacex is looking to goldman sachs. the space travel company is seeking a half billion dollar leveraged loan. goldman is leading talks with potential investors this week, according to bloomberg sources. the valuation has climbed to $28 billion as it has launched and

landed rockets for reuse, reducing the cost of space travel. this means that it is the most third viable venture backed startup in the u.s. after uber and airbnb. year after year, companies the continue to declare they are committed to gender diversity. according to a new study, progress is not just slow it has , stalled. compiling data from over 400 companies with 20 million employees, the 2018 report shows women continue to be underrepresented at every level. while more and more women are earning bachelor degrees in promotions, and staying longer in the workforce only one in five senior leaders , is a woman and only one in 25 is a woman of color. we discussed this. >> women are leaning in and companies need to lean in now. women getting college degrees, at higher rates than men for

years, women are asking for more, asking for promotions and raises as often as men. and they are not leaving the workplace. so companies need to do more and they need to treat diversity as a business priority. what do you do when you want to hit a goal? you have a compelling case, you set goals, you report progress. and you hold leaders accountable. and too few companies are doing all of those. emily: you've been working on this report since 2012. what is different about this year? is that the difference is there is no difference? >> companies are stalled. what we find is we are getting closer to understanding root causes. so they are saying we understand , we have a problem. but help us start to break down problems we can solve in units of one or two years. this will take 5-10 years to shift a generation. for example tell us about , micro-aggression. tell us whether targets work and

how other companies do it, for a couple of examples. emily: you are singling out the idea of only this year. the only woman in the room and the experience she has. talk to us about why it is so important to understand that experience. >> they have a different experience than women who work with other women. they are more likely to face those every day fights. this is a table of women, where maybe you have to prove capabilities over and over again. and that wears people down. we know that they feel under pressure, that they feel isolated and on guard. it's hard to imagine women can be their best selves and do their best work if they feel that way. emily: square when it comes to , hiring, one of the things square does is put women on a team with other women. that means it may have a lot of

teams that are only men because men still dominate the workforce. but by being on a team with other women, they have networking and camaraderie and the experience will be better. but it comes at a cost. is that something that you would recommend? >> i think that is a good strategy. putting them together creates a different culture. and then they have role models, they have their own. p are network. and they start to advance. if you are the only one over a long amount of time, you start to feel less motivated to stay at that company, less satisfied. and more interested in leaving. if you leave, that's not helpful. emily: there's a compromise. i mean, you are having teams of all men making decisions about things without women on the team. >> i don't think it's a simple choice. but the one and done approach of i have a single woman on a team and now we have diversity. that has to change.

until we get where we need to go, where we have women at every level, not picking and choosing where to put underrepresented women across the team. a good strategy is to group women together and accept or realize that leads to better diversity of ideas on that team and hopefully better performance of that team. so then you can point out and say, look at the blended teams and see the performance they are getting. >> building on that. the challenge for companies is it is not a one-shot deal. if that's the only thing you do, you probably won't have a lot of success. the hard thing for management teams, you have to do things in concert and stick with it. if this is a seasonal initiative, i guarantee you you will not be any better than you were last year. emily: what's the experience for women of color? >> we saw this last year as well it's worse. , they see more barriers to advancement. they get less support from managers less access to leaders , and senior leaders, which are

the people that open doors. and they are promoted more slowly. emily: how do we know this isn't just solving a white woman's problem? all the talk is about gender, not race. >> this year we were looking at lesbian women as well. they are having a worse experience. we cannot agree with you more. elevating women means all women. and actually the women that need the most support in the workplace is black women and making sure their voices are heard. emily: you are not only the chief inclusion and diversity officer at the kinsey, you are also the leader of services. this is a notoriously male-dominated industry. that must be interesting juxtaposition. >> it's a couple of different one, for anyone in technical sales is harder. being a person of color is harder. for men of color, it's not an easy road as well, or for anyone who is gay.

but one of the things that is interesting is, in the tech field if i was going to put a silver lining on it, there is an eco ethos of radical transparen. people grow up in an environment where they understand data. one of the things the report does, we put it out there. for example there is one company , were men felt that gender policies were going to hurt them. and they were 30% off the benchmark of how everybody else fell. the ceo said let's have a town hall meeting and put it all out here. here is what you guys said let's , explore that. that will not fix the tech culture in one go but i think the emphasis on data and transparency is something we can benefit from. emily: that does it for this edition of the best of "bloomberg technology." we will bring you the latest on tech throughout the week. tune in every day. 5:00 in new york.

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