♪ emily: i am emily chang in san francisco, and this is bloomberg technology. twitter's first full year of profitability, but the company surprised investors by reporting daily active users for the first time and it is smaller than snap. we will hear from the cfo. -- we check in with a talk the tech ipo pipeline. postman is the first is the first to see -- post mates is

the first to try. gopro has struggled to attract a wider customer base for its cameras beyond snowboarders and outdoor enthusiasts, but there was a pickup in sales. we will hear from the ceo. a lackluster first quarter sales forecast and ,eported tepid user growth suggesting changes to improve the platform haven't attracted a much wider audience. the company did start reporting daily active users for the first time at 126 million, smaller than some might have thought but grown 9% year. they say will -- they will no longer report monthly active users after the first quarter. shares plunged after the report. i caught up with the cfo and asked what he had to say. >> we had a record quarter to finish a record year. highest revenue twitter has ever had. we feel great about our momentum

going from 2018 into 2019. we are excited to reaffirm our same priorities we were executing last year into 2019, and we will work hard to deliver great outcomes one day at a time. emily: you made a big change reporting daily active users and you are stopping reporting active monthly users. why not do this a few quarters ago? ned: it has been a long journey. we started monthly active users at the time of the ipo, but there has been a shift in the company where our priority is really to drive value for people every day. the best way to measure that is .y monetizing dau that is what we are looking at internally to measure success for some time. we have given year-over-year growth rates, but we want everyone aligned on the same metric we go with internally so there is transparency and alignment, so we all look at the

same measures. millionnap reported 186 should advertisers choose twitter which appears to be the smallest? ned: we have the most the label audience when they are most receptive. today's information doesn't change anything, they know what they are getting with a specific objective in mind, whether launching a new movie or phone, advertising during the super bowl to amplify their message. we had 30 of 38 super bowl advertisers on twitter on the day of the super bowl amplifying their message because -- this doesn't change anything. we share a number that is different from others. will foronetizing people who come -- monetizsn able. they could be sharing a family of apps or users on a different

part of the service that might not see ads. emily: how do you know what they are sharing? theywe share the number are trying to drive. they are all people on twitter, on the app, that is the number we are trying to drive. emily: have you seen any increase in advertising or influx as a result of controversies from facebook? ned: we think about things we can control. if we look at the recovery we happen driving, it is because of things we are doing better. the service is better than it used to be for people on it, easier to find the things you are looking for, where there are events and topics that allow you to follow things that might have been harder to find before. advertisers, it is clear. they should come to twitter to launch a new project or service. i think that clarity has helped us. it has helped externally a lot

as well. emily: monthly users are declining. this is the number you will stop reporting, but do you think is -- and the changes will increase overall monthly users or are you focusing on the engagement of daily users? growthe changes ought to daily users over time. we are not trying to get to people to come to twitter monthly. it is a place for conversations around sports and politics and entertainment, and if you are coming monthly, we are not doing a good job helping you find value. when we are making changes, we are thinking how we can get people get value every day. emily: spending is rising 20%. is this a one off or is the cost structure changing? ned: we grew 17% last year, but if you look at the fourth grewer, where headcount

16% over the course of the year, expenses grew 21%. if you add merit increases and other things, new hires as well, we will continue to higher at the same priorities -- we will continue to hire at the same priorities, we will get to the growth we talked about. it is a continuation with the same priorities, thinking about health, conversations as a way to drive audiences. emily: do you see the 20% number staying the same over several years, or is that an annual thing? ned: annual for 2019. we will talk about next year more when we get there. as we make investments in 2019, we are not thinking about this year but hiring people who could have an impact on twitter over long times. emily: what other product changes are you making that you think will expand the overall audience? ned: one is for the fourth

quarter and there are some in front of us. on the fourth quarter we made it easy to switch back and forth the reverse chronological timeline so you are seeing the latest tweets and one where we use an algorithm to service the most relevant tweets first. that is transparency, helping you figure out or decide what you want to the in the moment. we are proud of the change. emily: and the super bowl. ned: i love to hear that. it was a great use case where you want to hear what people are saying in that movement -- that moment when a field goal is made or missed and a critical field goal -- that had a positive impact we were pleased about not just externally but internally because we could move and try things, and that has great outcomes as a result. there are a couple of things. conversations, we want to make it easier for people to tweet and be a part of a conversation,

then events and topics. right now you follow people but care about a topic or event. that is what brings you to twitter. to stick with twitter's and bring in salina way who covers twitter for us. there is something he said which is we are not trying to get people to come back monthly which was intriguing since you know, as a quarter ago that was the number. salina: investors have been clamoring for a daily active user numbers. in 2017 the fcc asked why they don't disclose the actual number. twitter said they didn't want to invite unfair competition and growth is more important than the number. but here we are they and they are disclosing the physical number. now undoubtedly daily active metrics a more important for advertisers. if somebody is only coming once a month, it is not a valid user from an advertiser position.

what theyve users is have been using internally to drive growth are several years, but it is convenient they decide to phase out monthly active users as it is decreasing, and daily active users are increasing. the number was smaller than people thought it might be, much smaller than the snap. how does that compare with what estimates were? analysts were expecting less than 50%, but it is 39%. that is less than people 115.ned and it was so the positive is it is growing at double digits rate while snapchat has been basically flat or declining. but snapchat is larger. it is 186 million daily active users, and facebook is more than one billion. twitter is only calculating actuallypeople that

look at ads, so it is not an exact comparison. an influentialis platform. the twit -- you don't see the same with snap. selina: they are very different platforms. twitter is what is happening now , to drive engagement towards an apt whereas snapchat was about the person to person engagement and the demographics are different. snapchat skews younger. .witter is influential there are news outlets every day and on television networks like our own, message to message where tweets are being shared but not counting that into the numbers. the overall influence is larger than what the number shows. emily: selina wang, breaking it down for us, thank you so much. startup aurorar

got a boost of confidence from amazon. this tocompany is using support a range of carmakers. if you like bloomberg news, listen on the bloomberg app, bloomberg.com and in the u.s. on sirius xm. this is bloomberg. ♪

is hitting the gas on self driving cars. they announced an investment in the autonomous technology startup aurora innovations as part of their $530 million a fewg round, founded in

years ago. over works with automakers to needed to deploy autonomous cars. $2.5unding round valued at million. joining us to discuss, the person who ran google self-driving car unit for a time. surprise.at was a that piqued our interest. why are they getting in? >> from our perspective it is amazing to have a great partner like this. this is a company that is a technology giant and a majestic -- a massive logistics company or we are excited and see if we can make them a customer. emily: how did the conversation ? ay out, what you can tell us how do you see this being integrated? speak to amazon but adam wainwright we are building a driver.

that can move people and ultimately will move goods as well. we look at amazon and see this logistics company and look at an opportunity to help them with that overtime. amazonso self driving cars bringing goods to our doors? chris: potentially. aurora.alk about it is in volkswagen and hyundai eerie what does the technology to? chris: you should be able to get in your car, get from a to b, read a book. we have been going 2.5 years now. we are 200 people now, it is exciting to see the progress on the software. emily: for the technology on the roads today, if you driving these cars for them? chris: we are still developing. we don't have a product yet we ship to customers but we have vehicles on the roads in california, pennsylvania as

well. when you say driver, it is different from google or tesla. chris: it is similar to google's approach. they are building a driver, integrating that, buying vehicles from people, determining what they will do with it. our model was do the thing we can do best, building the driving capability. then we work with companies like volkswagen and hyundai and other companies in the transportation sector. what we are excited about is we are an independent player. people that are working with us have confidence we will be supporting them and their interests. emily: what do you make of the tesla? broader industry, you see the traditional automakers trying to get to self driving cars. it is moving slowly than what some might expect. togle hasn't had a chance

since 2011. chris: technology has this opportunity to save lives and make the roads more efficient and less expensive and more accessible. like anything that will be transformational, it takes a while. it is a new technology and it is bridging two industries, technology and in a motive -- automotive. it takes a lot of figuring out. emily: who'd do you think the winners and losers will be? chris: aurora will be one of the winners. green see the incredible field. this is amazing opportunity to take the next step into market ties and transportation. -- in democratizing transportation. emily: what are the challenges you work through? there are some moral and ethical issues you have to work through when you are building self driving cars.

which way does it go if it sees a person on the road this way or that way? chris: the heart of it is anticipating. next? e they about to do will they step on the road, will that vehicle make a lane change? if you can do that well, you a defensive driver. then you avoid these catch 22 situations. emily: how can a car know what another will do if there are not signals? they didn't use a blinker, they made a last-minute decision. chris: that is part of the challenge. there are subtle cues. even if it doesn't turn on the turn signal, if it starts to drift, it might make a lane change. if you are approaching an intersection, some car wants to move over, that is part of the technology is getting to the point where we pick up subtle cues and react safely.

carmakerat are your partners saying to you? chris: they recognize this is important. the seed is part of the future -- they see this as part of their future. companies will be able to provide mobility. the key ingredient is having a driver in their system. that is what aurora brings. emily: have you plan to spend $25 million? is an we love that, it incredible vote of confidence. the folks with sequoia and amazon and t. rowe price is great. hiring great it on people. it is a big problem, we need lots of people. emily: all right, chris armstrong, thank you. congratulations. chris: thanks so much. emily: competition in food delivery is getting more cutthroat as post mates looks to go public. what does it make this mean for

door --, grubhub and more? nology.s out @tech this is bloomberg. ♪

emily: another tech unicorn heading to the public market, food delivery service post mates has filed for an ipo. go with other companies like uber and lyft looking to list this year. we have more. post makes, the latest one to pull the trigger. they haverted today filed. we understand they are seeking a valuation of $1.85 billion or

higher. a really interesting company. people don't understand it is the pioneer of the on-demand food delivery. grubhub existed before, but they were a website that sort of used restaurant that had their own delivery people, and post mates brought in this gig economy with like uber, went that people who couldn't afford delivery people. you have these follow on competitors that have come out that come out of the woodwork eatsdoor dash and uber that are still while but not as profitable. things youof the mentioned as a customer occasionally, i find their fees are higher and they are less trans air in about where the money is going. -- they are less transparent about where the money is going. >> i have a study -- i don't

know where their fees fall compared to the other companies but post mates is popular. it is the leader in l.a. and tends to have i think a slightly wealthier clientele. it is popular with celebrities and a lot of their brands are exclusive, high-end, organic brands that they build these relationships, so it is popular. their fees could be higher. doordash isuilt -- built on cheap. uber eads is with mcdonald's. each of them have their own -- eighth is with mcdonald's -- uber eats is with mcdonald's. italy: what advantage does an ipo give -- emily: what advantage does an ipo give?

olivia: employees and investors, people that want to make money, it helps with that. post mates made a lot of money, it raised $100 million recently and before that $300 million, so it is not like it doesn't have cash, but the timing is good. the ipo market is hot, keeping me busy in my new role. they saw this was a great new window. they are one to watch. maybe another larger company would want to acquire them. that could happen. uply: uber has been straight , they are experimenting with groceries. his post mates looking to expand beyond food delivery -- is post mates looking to expand beyond food delivery? [speaking simultaneously] is alreadyt mates doing grocery delivery, and they have a deal with walmart where they will deliver groceries. a lot of people don't realize

but there is a delivery partner for apple and tech brands. they will quietly deliver -- you need a laptop last-minute, they will be on the backend of that in the white glove delivery option they provide. i think they are experimenting with lots of things but restaurant delivery is there sweet spot and the majority of their market. emily: our deals reporter bringing is another scoop, thank you so much. imac could be bracing for a down fourth quarter but embracing its a giant screens is china. we will discuss. and seattle and francisco are -- san francisco are tech hubs, but they are cities leasing huge housing shortages -- facing huge housing shortages. we will talk about how they try to remedy the problem. ♪

emily: this is "bloomberg technology global link" where we "daybreak us trillion of" to bring you global news. tops take a look at the global tech stories of the day. -- where we join "daybreak >> despite twitter's daily users rising to 126 million in the fourth quarter, the social media company also reported a decline in monthly active users. the number was down 9 million from the same period last year. twitter also revealed it will no longer report monthly at

diffusers going forward. amazon has cut a deal to return thousands of suspended products to its indian site. to do so, it has to sell much of its stake. the products would be listed on the first of the month following a new e-commerce law. together, the companies account for more than 70% of india's entire online market. hasnadian telephone company set a possible ban on huawei --ipment will not delay it has said a possible ban on will let delayt its rollout. willter this month, imax release its fourth-quarter numbers. with its global box office slipping 15%, one place it held strong was greater china where receipts jumped by 10%. the company hoping 2019 will be

a box office breakthrough with plenty of blockbusters from the likes of marvel studios and the latest "star wars" installment. earlier, we caught up with imax's ceo to get his thoughts on the year ahead in the u.s. and china. >> we always say we are not a quarter horse. we are in it for the long run and or the year. we disclose our box office or the fourth quarter, and it was quite strong. you are right, it did not live up to the year before because there was no "star wars," but "aquaman" was a huge blowout success. i think most analysts would say our fourth quarter did better from a box office point of view than they expected. this year is a little bit of an embarrassment of riches because in the first quarter, you have a lot of terrific films. that'll angel" coming out and of course, "captain marvel"

angel." battle >> to your point that china has been doing well, we have seen the pace of growth in chinese box office sales slowing down. how do you plan to deal with that? >> it is a great time to ask that question because it is chinese new year the last few days. chinese new year accounts for a early significant portion of the year's box office. the first three days of chinese new year, we are up 20% over where we were last year and last 75 percent over the year before. i think the market itself is kind of flat over chinese new year, but again, for premium entertainment, special experience, a way to see the movies, we are doing extremely well in china. >> you have deep business ties.

i'm curious for your sins on the ground of the chinese business community's view of harder ships with american companies right your- i'm curious for sinsense. >> i think the chinese people are anxious to reach some sort of compromise with the united states. they were speaking different languages, not only chinese and english, but they wanted to talk business language, which the u.s. was, and the government was more caught up in government policy language, so in the business community, i think there is a lot of support. a lot of the sectors in china you guys have been talking about have been suffering. some of the things like auto and steel and bigger areas, but consumer discretionary -- "with the business we are in.

that has held up pretty well. i think it may be part of the export economy suffering more than a consumption part of the economy. >> netflix has started to make some noise in the movie business. is there any chance you could be partnering with them in the future for event films? >> one of the great things about cize films.eventi i think they suffer from the lack of ignorance and lack of press. with the academy awards, we will see how that affects people's perception of the movies. we have talked to netflix many times about doing things with them because we are a great platform to do that, but for netflix one see

stay with streaming and we are committed to working with our partners worldwide in preserving the windows as they exist today. places like amazon are respecting the windows. places like apple have not announced their position. i would love to work with netflix, but i think they need to show some flexibility on the windows. >> really interesting to hear from the imax ceo talking about the chinese markets and how consumption remains quite strong. really worth pointing out that in the chinese new year, the first day of the chinese new year, already china broke their single day box office record, raking in more than $213 million in a single day. emily: the chinese market certainly a big ticket for hollywood. i don't to date myself, but i think it has been a couple of decades since i into an imax movie, but "the lion king" might be enough to get me to go back. days, i watch movies

through streaming. you can get it basically in your house. he also talked about netflix and want to do some sort of partnership with them, but worth noting it is the same issue in asia as well. you see imax having great business in india and japan, but are still there. emily: i'm with you. i don't leave my couch, and that's how i like it. thank you so much for that interview. we will have much more ahead, so stick with us. this is bloomberg. ♪

emily: antitrust authorities in germany have ordered facebook to change the way it combines user .ata facebook says it will appeal.

last month, microsoft announced a $500 million initiative to tackle seattle's growing housing crisis. home prices in the area have grown faster than the median household income, and this is not just a problem in seattle. another high-tech held is facing a similar issue. just a week after microsoft announced this, mark zuckerberg facebook wassaid backing a housing effort in the san francisco bay area. joining us, the former governor of the state of washington who is now the ceo of challenge seattle, an alliance of executives from the region's prominent businesses and philanthropies, including microsoft and amazon, that address the area's housing trouble. thank you for joining us. how did you get microsoft to focus this much money on housing? -- had- all of the ceo's

a meeting and talked about the amazing success we have had economically but some of the challenges that have come about as a result of that and really talked about housing affordability at the top. they began the process of asking how they could help, and, really , they stepped up and said they would invest big-time, philanthropic we give money to homelessness -- $25 million. 200 d million dollars for low income, and for the first time ever, 220 $5 million for middle income housing because with the growth and high cost of housing, we have seen the affordability of middle income housing just diminished dramatically so we are pushing all of our middle income families out of the region. emily: i recently sat down with priscilla chan to talk about the chan-zuckerberg backing of the initiatives in san

francisco. i asked why more companies seem to be wising up to their role in this issue. listen to what she had to say. >> this is a problem that exists that impacts the greater community. they want to be able to be part of the building the seattle or the bay area into a place that people from all different backgrounds can come and be successful. also understanding that looking at opportunities like the partnership where they can be part of being a durable solution. emily: one of the things she also mentioned was that this is a talent issue. it is difficult to companies the facebook to recruit in area because it is so expensive, even for people making very .ompetitive tech salaries why do you think companies like this are on board? what is in it for them? >> i think what is in it or them is not only their ability to recruit and retain, but

importantly and the number one subject these ceo's have discussed is if you cannot have the people that help you when you are sick, teach your children, respond to fires, respond to natural and unnatural disasters -- by that, i'm in law enforcement officers, firefighters, teachers, nurses -- you don't have the fabric of a community, and if you don't have that kind of economic diversity and people can live where they work, you lose the vibrancy, the health of your community at large, which is very important to them. let me give you an example. of the 100 responders from one of our local utilities, three lives within close proximity to where they actually work. the rest are over 90 minutes away. everybody is impacted when that happens. it is economic impact, social impact, quality of life impact. its safety. it is impacting every way.

is part of bezos your coalition and many in seattle would say amazon is a big heart of the problem is not the problem. how do you balance that? >> we have enjoyed the amazing positive success of economic development in our region. now we know along with that comes some significant challenges. off firstsoft stepped big time and a amazing credit to them, but now we are going to ask the community at large to support. we have asked our mayors to step up and they have volunteered to see what they can do to break down their barriers and provide incentive for middle income housing. we have asked our community to can getmayors so they the job done. we call it an all hands on deck effort. at some point, we're going to ask anybody and everybody in the community, not just large business but all business to

invest in the future of our community if we want to maintain the quality of life that brought us here. emily: do you expect amazon to play a financial part in fixing the housing issue and -- in seattle similar to the commitment we have seen from microsoft? >> we are having a meeting tonight to have that discussion about how we go about getting more people to invest along the lines of microsoft, how we get individual philanthropic people to invest in our community, how maybe the average citizen to buy a community hot that will support middle income housing. it is not just microsoft and amazon. they are stepping up. they are part of the solution, but it's everybody being part of .he solution emily: what have these sorts of prodevelopment policies been

difficult to accomplish in the past? i assume there are a number of political and practical challenges you will be up against. >> no question about it. we took a look around the world in sydney, australia and london, england. they said they raise capital from the private sector, but they did not succeed in addressing middle income housing, and the main reason was they could not make down some of or providebarriers economic incentives to developers and builders to get the job done. that is why we have art nerd with the public sector. we think we cannot succeed private alone or public alone, but together with community support, there is nothing we cannot do. >> thank you so much for joining us. we will be watching to see what you accomplished. >> thank you. emily: still ahead, gopro is zooming into a new opportunity. we will hear from the ceo on why the company is moving most of

its u.s.-bound camera production out of china by this summer. that's next. this is bloomberg.

emily: apple releases software updates for iphones and other allows to fix a bug that users of facetime to listen in on devices before the call has been answered. meantime, gopro reported a profit wednesday and need wall street sales expectations after the company cut costs, and its action camera sold briskly during the holiday shopping season.

most of u.s.-bound camera production was moved out of china for the summer. china is getting more expensive than the threat of tariffs was a catalyst to move production. >> we are showing a lot of growth internationally, which is terrific. we were up significantly in a mia and aipac in the fourth and aipac in amea the fourth quarter. we returned to product strategy and pricing strategy we know well, so it's great to have that predictability back in the business. we finished the fourth quarter up 20% in terms of units sell through, so that is terrific momentum. >> the new positioning is you are not trying to be relevant to everyone but serve that core customer. how do you continue to monetize that? >> we have not reached everyone in the world that could benefit

from a gopro. the strategy you are referring to is customer segmentation and better understanding who in the world has a problem that gopro can solve for them. it's funny you call it a new strategy because it is actually our original go to market strategy. it is how we build the brand and business, serving specific customers that would benefit from gopro. adjustedng public, we our strategy of it and tried to be more relevant to everybody, and it turns out that it is better business for us to better understand the various customer segments specifically and address their needs with specific product and marketing that resonates with them. >> gopro said it would be moving u.s.-bound production out of china to avoid potential tariffs. why did you choose mexico as the new location? >> for several reasons. there's some cost benefits to moving some of our production to mexico.

there's supply chain benefits, and it just makes a lot of sense for many reasons. tariffs --hreat of we have not been included on the list, but while the threat of toiffs served as a catalyst get us thinking about moving production out of china, once we did our homework, it just made a lot of sense on many levels. it is just smart business. >> walk me through how the cost savings work. without the tariffs, why is it cheaper to be in mexico versus china? >> because china is getting more expensive to do business in. >> is this something you would have considered without the threat of tariffs? >> i think we eventually would have gotten there, but not as quickly as we have. >> what other countries were under consideration? >> malaysia was a consideration, but at the end of the day, mexico has got terrific infrastructure. for our businesses in the americas, it makes a lot of sense, so we decided to move to mexico.

>> camera sales in the asia-pacific region have been growing but can you talk about the china demand as a result of the macroeconomic headwinds? >> china was more challenging last year, but we still managed to grow 2%, which is great. china is an expensive laced -- place to do business, and it is great to see gopro thriving there. it shows that our go to market strategy and global demand for gopro extends into the chinese market, so there's obviously a lot of opportunity for us there. >> is that a market you will continue to invest and double down in? >> yes, we have sales and marketing offices in china. >> several of gopro's efforts to diversify have struggled, including the drone business, but the software business seems to be taking off with the cloud less subscription, so what is the roadmap for growing that

software revenue? >> gopro serves as a solution for people who want to capture and share experiences. that starts with the camera, but we also need to solve for helping people offload their footage, archive it, access it, get more out of it. gopro plus offers unlimited cloud storage, photo and video content to our customers. it also offers you break it, we replace it damage guarantees. to guarantee our products for our customers and we will be rolling out other features and benefits that excite our customers. for $4.99 a month, plus offers a lot of value and we are seeing strong interest and intend to build on that. >> this is an exciting area for investors. you get higher margins on the software side versus the future, what portion of revenue could software subscription services

become yahoo! >> it could have a meaningful impact on our gross margins, that's for sure. we're starting to see that. we talked about that on the call yesterday. we have work to do to drive awareness of plus. as we shared previously, awareness of our cloud subscription offering is roughly community,ongst our so there's a lot of opportunity, a lot of work to do. we have also been doing research to understand what our customers want to see from the plus subscription. we rolled out unlimited cloud storage and increased disk rounds -- increased discounts and have seen a nice uptick in subscriptions for this year, so more planned for this year. emily: that does it for this edition of "bloomberg technology." on friday's show, we will speak to the person with the power to possibly kill amazon hq to --

hq2 plans in new york city. i am emily chang. this is bloomberg. ♪ the latest innovation from xfinity

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heidi: a very good morning. australian markets had just opened for trade. >> good evening from bloomberg global headquarters in new york. asia." to "daybreak haidi: asia looks set to end a limited week in decline amid growing concerns about trade. president trump seeing no meeting with china. investors already worried about