>> from the heart of where innovation, money, and our collide, in silicon valley and beyond, this is "bloomberg technology," with emily chang.

emily: i'm emily chang and san francisco and this is "bloomberg technology." elon musk, shrinking twitter, 3700 people. in the meantime, brands continue to pause their ads on twitter and musk is due -- doing away with policies like a once a month rests and more. inching closer to a future with driverless cars, we talk about the challenging road ahead with the ceo of aurora. another tough day for peloton after revenue fell short of expectations. still, the ceo is confident that his turnaround plan will work

better than expected. we will discuss. first, a look at the markets, let's bring in ed ludlow to walk us through the day. ed: a pretty furious part of the earnings season. smaller companies, block, formerly known as square, an impressive quarter. this is jack dorsey's other company. strong, basically performing on the bottom a lot of gross profit coming in above the street expectations, cash app, what those users used to purchase money or stocks and crypto, registering strong growth on the bottom line. doordash, 13%. not the story that we were expecting. no signs that inflation is determining the consumer from spending money on take out. i don't know about you, i haven't been doing much, i would love to, but also the coinbase is up with paypal lagging, down

7% in after-hours trading. slightly ahead of what the street was looking to, but it is the full year outlook they zeroed in on. revenue at $27.5 million below what they expected away from earnings season. the markets of the day were about the fed on wednesday, raising rates. the commentary that rates will remain higher in the face of inflation, the market is talking about recession fears. lowest level since july of 2020. the semi conductor index weaker as you was higher. what was the craziest story of the day? peloton. let me take you on a wild ride. down 16% after the company said revenue in the last three months of this year would be between

700 million and $725 million. below street expectations. the chart tells the story, closing up 8%. that's up a hill climb. you know, even more impossible than some of the hill climbs in the peloton classes you and i have been taking in the last few years. astonishing story. breaking news after hours with yes, more names freezing advertising. general mills, howdy, pfizer, all pausing their twitter at. little reaction in the stock listed shares of those companies. this report last week from bloomberg that general motors paused ads on the platform. l'oreal had issued a statement that they had in fact cause after the pole overnight from the times said they did. either way i advertisers are trying to work out what's going

on inside of lawn musk costs twitter. emily: lots to digest their. i want to dig into the layoffs happening at twitter, elon musk planning to lay off 3700 people, half the current force. he says he plans to teleworkers who will be affected on friday. kurt wagner, critical, reporting on the latest twitter developments. where are these jobs going to come from? what do we know? >> it's companywide, not necessarily in any particular area. he has stressed that product and engineering seems to be where his focus is. it's possible that could be less impactful than something like policy, legal, things like that. but you know this is a part of his strategy to get the company into a better situation. right $44 billion for twitter,

huge debt payments, interest payments they have to start paying off and a part of his plan is to cut headcount. emily: so how are twitter employees feeling right now? the acts is coming down on friday and no one knows if they will be cut yet? >> that's right hand out only that they haven't heard from any other leadership. right? everyone is talking with their managers mother has been no company about as companywide managers at all. the c-suite, all those folks were fire last week or early this week. if you are a twitter employee you are getting your information from other media outlets like virgo. that's where you find out what's happening at your own company. that's unsettling for a lot of people if they are sitting around wondering if they will be employed by the end of the week. a stressful time internally to

say the least, he's looking out for each other, trying to get best -- give best tips for layoffs, take care of each other, the company doesn't seem to be doing it for them. emily: meantime we just got a headline from dow jones at a number of dominant advertisers are pausing ads on twitter. is this going to become a bigger thing? we talked about the potential for a boycott. does it get to that? >> this is what we were talking about yesterday. the chance of a boycott seems possible and a big deal. when we saw this happen with facebook, all the key executives , the sheryl sandberg's, those on the business side, they did damage control four days. we are not going to see that at twitter because the people at the top of the company are gone. when you have these big advertisers and twitter is a

relationship driven advertiser business because they don't have that intimate direct response staff we have the advertisers putting things on pause because they don't have those people inside of twitter who can reassure them. i think it's a think it's a dangerous thing that's happening here. emily: tell us what we know about how decisions are being made, who is making them, and how things being communicated are being communicated? >> what we know that elon musk is making the decisions and the best i can tell is that things are being done quickly and haphazardly. even this change to raise the price of their subscription product, adding new features, you know we saw him kind of like work shopping this publicly on twitter. tweeting hey would you pay for this, how much, what features. then he announced it the next

day. there is a very small group of folks, that venture capitalists, advising him, but it feels like he's sort of making it up as he goes along. as i mentioned, not a lot of messaging coming from the top of the company at all. unless you are working on a specific problem for him in that group, you don't know what's going on at the company. emily: all right, kurt wagner, i will let you get back to the phones. thank you for the update. coming up, why silicon valley is on a post-pandemic health care spending spree. that's next. this is bloomberg. ♪

emily: last month the venture capital firm cruz announced $1.5 billion in funding across two funds, meaning more dry powder to take advantage of valuations. but how are firms thinking about how to deploy the cash in a long downturn? our partner at cruz joints me now. how is that cruz strategy evolving in the midst of the downturn? what are you all talking about around the partner table? >> about how we are continuing to play to our strength. we have been in business for 52 years and focused on backing

founders in the early stages. we are continuing to do that, investing and partnering with founders making game changing companies. emily: are you finding enough places to put the cash, given so many companies out there struggling? >> valuations are compressing across the board. you mentioned folks in the public markets seeing it. we are seeing it play out against of private sector as well. but we are backing founders who are in it for the long haul. as someone who focuses on tech, health care is a defensive place to be in the market. there continues to be a ton of innovation adoption emily: so, let's talk about health tech, your focus.

cool as it was in the middle of the pandemic or not? emily: i continue -- >> i continue to get schoolbook we had a watershed moment where there were a number of trends around bringing ai in to health care delivery unlocked by the pandemic where the pent-up demand was released. now as the market cools we are continuing to see the trends play out at a much more, much more reasonable pace of technology adoption. a few of the companies i would highlight, you just had their logo on the screen, they are in the telehealth marketplace space helping to unlock telehealth for large tech companies, providers, companies trying to put great care in the hands of consumers like you and me. emily: so what is it about health tech that specifically

excites you? apple is coming into this. google, amazon. is it a threat that big tech giants want in or is it an opportunity? >> i think it is an opportunity. you mentioned amazon, heard rumors of apple getting into the health insurance game, google playing in the data space. it's a recognition of how technology has been a bit of a laggard industry in health care and there is so much opportunity to bring it into the hands of not only clinicians but individuals like you and me, bringing us the care we need. so many of us for the first time during pandemic had our first telehealth visit with at-home diagnostics but there is a huge opportunity to drive care delivery systems across the board. emily: meantime, more broadly,

the world is falling apart and become valley, kind of crumbling. layoffs across the board. 37 hundred people about to lose jobs at twitter. does this have broader ramifications on the start of ecosystem? >> there are definitely broader ramifications, which is why the breath they had a firm like ours at the early stage where we have seen a number of different ups and downs in the market, where we have seen leaders making tough decisions, the ones making tough decisions are focused not just on growth, growth is necessary but not sufficient. how do they focus and invest in their companies and in future, r&d and growth to drive scalable business models and game changing companies they can continue to back. emily: what advice are you giving startup founders right now given these conditions?

>> as a board member and foundering partner i'm trying to help them see around owners and what's down the pike. one key thing they are focusing on is not just how they can have clear eyes and continue to focus on their business but also make the tough decisions. oftentimes it can be, it can be tempting to see it play out but when i talked to the founders making tough decisions with clear eyes and a -- advice from their investor partners, they will be the ones who can not just weather the storm but hopefully emerge even stronger. emily: talk to me a little bit about the founders that will or can be successful at a time like this. people are calling this.com bust 2.0. this could go down as a tectonic shift. the companies that survive and the companies that do not.

>> we continue to back not only passionate founders and you just mentioned how tough the times are. the word that comes to mind is a grid. founders and companies that can be gritty and not just move through the time but but -- but potentially emerge stronger. i also look at founders that continue to be begins for talent and for capital in the tough times. i think we will continue to see in essman in really high quality teams and businesses. that's not going away. we are seeing that flight towards high quality and efficient growth in building these companies. emily: i know you also worked in banking and took some companies public, but what is your sense for how long this downturn lasts? six months? 18? three years? >> i continue to be optimistic

that we will make our way through, but that said planning for stormy weather ahead. your guess is as good as mine in terms of how long this will last but we will continue to invest in companies and work with founders who see not only brightness on the horizon but a willingness to work through these storms. my guess is that we will be in this for a considerable amount of time so having folks focused on the fundamentals of their business, keeping the main thing the main thing, building towards the future. emily: keeping the main thing the main thing, we will remember that. thank you so much for stopping by. alright, coming up, peloton continuing to struggle, the ceo still upbeat. we will explain why, next. this is bloomberg. ♪

emily: peloton rebounding after tumbling earlier with the company posting a weaker forecast than expected even as the ceo declare they are beating their own timeline for turning the fitness company around. joining me now, mark gurman. mark, talk to us about what's going on. investors clearly don't like what they see. >> this morning we got the definition of a mixed earnings report. looking at the numbers, things are not so great. a revenue forecast declining 37% . it's the second fiscal quarter for peloton. then there's a letter from the pellet on saying the ship is starting to turn. that's my impression as well. you are seeing some positive direction in these numbers. gross margins improving.

cash flow improving. but we don't like the revenue numbers specifically for hardware, those numbers continue to fall while subscription numbers continue to climb. usage, continuing. charting low. people are not buying the hardware. it raises the russian why is peloton in the hardware business at all? why not pivot away to having the tablet on third-party bikes? they probably have the best content software in that space. why not get rid of your failing hardware business? i think that is where the company may eventually go. clearly some bad news on overall revenue but some good news in terms of how they are framing what they are calling their turnaround on a subscription front. emily: how do we measure whether the company is beating its own timeline? do you agree? >> there is no way to measure.

we have to take their work or at. right now he says it was longer than the one year it has taken. remember, he joined in february and he has really pulled apart the company, laying off thousands already. outsourcing manufacturing and customer service as well as deliveries. they pulled every lever possible, running the company into the ground, trying to start over. but we don't see the positive impact on the stock. touting over 90% and -- in the last year, seeing some positive comments and momentum where they really talk of subscriptions, well over 60% of their overall revenue, which wasn't the case when they were high flying at the top of the pandemic. i think if they continue to move the needle and try to compete with apple fitness, really try to integrate those bundles

around software and ultimately exit hardware, something i think they should do, nothing they said they would do, i think they could be on solid ground for a little while. emily: quick question, what about acquisition? apple, amazon, for they have or by peloton? >> i do think so, they would be buying the family hardware business. amazon maybe for prime. but i think netflix hasn't done a good job in expanding the encore content, failing at gaming, fitness could be a big way to lock people into netflix subscriptions. emily: looks like some ceos have consulting to do with mark gurman. mark, always appreciate you stopping by. meantime, jeff bezos may be buying another business in washington, the commanders. he may bid for the team,

according to the folks familiar with the matter. byron allen is preparing to sell the team. amazon currently carries the nfl thursday night football package. coming up, self-driving technology getting more and more scrutiny from regulators around the world. after the break, the challenges for autonomous driving with one of the leaders in the space. this is bloomberg. ♪

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emily: welcome back.

i want to get back to the markets paid the names across ev and mobility, here's an. -- ed. ed: nichola stock up then ultimately closing down 11%. they are not going to reach their original guidance of 300 semi trucks this year. that downgraded the outlook for the rest of the year and next year saying performance is not want to be as good as they hope. expectations are being lowered because customers for battery electric commercial vehicles are pulling back. you look at the chart and the wild ride we had for them throughout thursday's session. two others in that same space are also sliding.

there was interest in fisk or given that they were planning to start production of their suv. then aurora. they are capitalized to get them through 2024 and aurora is telling investors they are on track to launch a commercial autonomous trucking business. is fighting talk enough? is a lot of questions in the space right now. emily: hey mom, i want to stick with aurora -- hang on i want to stick with aurora. the industry is having a rocky patch with competitor argo ai shutting down after volkswagen and ford backed away from a deal. is that a small crack in a larger fissure? what do you think? >> i think it's just normal.

what we are seeing is what happens in any district that if you look at the automotive industry at the beginning of the 20th century, there were 200 car companies. then, there were three. we have seen a lot of companies spring up, explore the space, some of them will succeed and others will not. aurora wants to be independent. i am more optimistic than before about the space and where we are going. >> as you say, risk is normal. what happened with argo shutting down, potential investors pulling out, is that a aurora faces? >> no, it's part of our strategic advantage. we wanted to be independent because we knew we wanted to be able to focus on the thing that mattered. when jim farley started talking

about shutting down their investment in argo, he said we want to place our bets somewhere else. if you look at our investor base, these are folks who get the opportunity understand the quality of the team and they are excited about the journey. ed: it's good to see you virtually at least. you just said what we are seeing in the industry is normal, but what vw and ford are saying is we are pulling out because this is a more distant technology than we thought. it is too far away right now. what are you doing to ensure stability for yourselves in terms of raising money? are you going to plan headcount reduction to reserve cash? you guys still have a way to go as well. >> i have been in the space for 20 years. we engineered the company from day one to solve these problems. as a company, we have amazing partners.

we work with toyota, uber, the next, amazing trucking companies. we feel like we are spring-loaded go to market. yes, we raised a lot of capital last year. we are in strong position. we're really excited about the path forward. ed: is it possible that apple or microsoft buys your company? >> i think you are alluding to a memo that leaked that i drafted for a conversation with our board. i don't know if it's possible or not. we are not going to comment on those kinds of things, but for any company in the existing market conditions, you need to be exploring the span of options from headcount reduction, acquiring companies, talking about a crisis being the worst thing to waste.

focused. as a company, we have taken the path of focus, being efficient, and executing through this. we have the capital to do this. we have the team and technology to make it happen. ed: when you and i last saw each other, we were in texas riding around in self-driving trucks. your immediate ambitions were broad. it seems like the focus is on the use case of trucking delivery, hauling. have you had talks with the big players in that space like amazon and walmart? >> we are still building a platform that will drive all cons of vehicles. the right first place is in trucking. we see the opportunity. the market scale is there. it's just the right place to deploy this first. we have those partnerships with toyota and uber that woman get

to ride-hailing to charge into that. -- when we go ride-hailing to charge into that. fedex is the largest carrier of western truckloads in the u.s.. it is also the most tractors and trailers of anyone in the u.s.. we are working with amazing folks today. emily: talk to us about the longer-term beyond trucking. where could this technology go? how long is it going to take? much of our coverage recently, you said you have been in this industry for 20 is years. it hasn't still come fully to fruition. >> one of the challenges is get to develop our technology out in the public because we are on the road. you get to see a little bit behind the curtain of what it takes to develop world changing

technology. it's exciting to see some of our competitors on the road with no drivers in places like arizona and san francisco. we are on the road every day with our trucks hauling loads for our customers. that's exciting. we look forward to the next few years. we have been a leader in transparency. we have shared our roadmap from here to launching a product with our operator and we want to continue to do that through the current disillusionment. >> can you give me a number? how long until long-haul trucking is driverless? >> we shared a roadmap for us. at the end of q1, we help it to be fully complete. by the end of next year, we wanted to be ready so that if we had a truck platform that was

autonomy enabled, we would be able to pull the operators out of those trucks and have them operate without anyone on board. we hope to launch in 2024. emily: we are getting breaking news across the bloomberg about apples hiring plan. apple is hiring -- pausing hiring for roles outside of research and development. i talked to tim cook earlier this year and he said they were going to be deliberate in terms of how or where they cut or where they spend and grow. this is apparently an escalation from earlier budget cuts and a signal of hiring slowdown. again, apple pausing hiring for many jobs outside of r&d. we asked earlier about the environment. have you thought about cost cuts? layoffs? it seems like everyone is thinking about it.

one said we are stepping on the gas not the brakes. >> for us, we continue to focus on being efficient with our capital. it pushes into mid-2024. we look at where could we do things sequentially rather than parallel? that's one of the reasons why we focus so much on trucking. have more streamline off the back of what we do and trucks. we look at how can we restructure things to be more efficient. we've made changes to the way people report. we looked at what are the things we need versus what we want. we're just getting the things we need. we are being thoughtful, extending the runway where we can. the opportunity is so exciting, the position is so amazing that we need to charge through this. ed: will you hire any of those

laid off from argo ai? give me a picture of the consolidation in this industry? >> we are always looking for great people. we have lots of jobs open, if you are interested please apply. we are reaching out to some of the argo folks. consolidation is happening. let's make sure aurora is set up so it can be a consolidator. that's why we have taken the independent path we have. while we have raised the capital we have at the times we have. i expect that at the end of the day, there's going to be a handful of companies that cross the chasm and we are positioning to be one of them. emily: we appreciate you sharing your thoughts with us. coming up, to major power

players and crypto just reported earnings. coinbase and square. this is bloomberg. ♪

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emily: coinbase and block just reported earnings. what are the highlights? >> it's a pretty good day.

block had already sold off 67% this year. coming back with gross profit above expectations. i want to hone in as it pertains to crypto. we have a very crypto friendly ceo in jack dorsey. it is still up 128% on a three-year compounded growth rate. if you're looking at the crypto market and what it makes -- what it means for these fintech companies it's not as bad as it could be. quickly pivoting, coinbase they really highlighted a lot of headwinds. you do see a jump in subscription and services revenue. that is larger, it would be 82% when you hold crypto prices constant. you are seeing these firms leaning on the diversification of the businesses in order to show investors what they are worth.

robinhood we have to point out as well because revenue top estimates. stock wise, they are down the least of the group about 30% this year. crypto decreased 12%. options and equities were up. they're coming in with an adjusted profit number that is better than expected. cannot hold when it's not on an adjusted basis? emily: jack dorsey has been in the news all year. did we hear from him on the call? talk to us, he was really instrumental in launching some of twitter's early crypto project. tell us more about the

connection. >> we know jack has supported a lot of companies in the lightning network trying to integrate it with twitter. he was on the block call. he is focused very much on block and financial services. he did not discuss twitter. the question i would have is as it pertains to block and twitter , we asked someone at sophia a similar question. -- sophia -- sofi a similar question. looming open question. it is yet to be seen, but one yesterday seemed like they were open for business should that be something that twitter wanted to explore. emily: we just got another headline on the bloomberg at elon musk is asking twitter to cut infrastructure costs by $1

billion. this on top of 3700 employees that we have reported will be laid off tomorrow. they will be informed of whether or not they are going to be laid off tomorrow. again another headline from reuters that elon musk is calling on twitter to cut infrastructure costs by $1 billion. coming up, a choppy market for founders. signs of resilience from businesses run by women. we'll talk to one of the reports sponsors coming up. this is bloomberg. ♪

emily: pitch book just released a story on venture capital. women founders have posted the

second-highest deal value figures. talk to us about the silver linings that you found for women run businesses. >> thank you so much for highlighting our report again. the data continues to tell the same story. you have heard the narrative that female founders continue to outperform no matter the circumstances despite market conditions, turbulence in the markets, they continue to be resilient yet under invested. while we are seeing higher numbers compared to 2021 with deal value becoming a lot higher in the recent months, what is not on the upward trajectory that we are really looking forward to is the proportion of deal value and deal count. a lot to unpack from exit value

to the outperformance in general even looking at the burn rate of venture capital funding. emily: you found that women founders had lower burn rates, greater evaluation growth. what do you think is behind that? >> people always ask us, are you surprised by the numbers? the reality is we are not because women continue to outperform in week -- leaps and bounds. the good news is they have not traditionally had a lot of funding and they have had to work with what i had. that means they are resilient, they are good with cash management and they are able to weather the storm. this means it's a little bit of a funding winter and the storm is here and while there will be winners and losers, it's clear that women have been smart about

planning forward and their cash management is showing right now. as you mentioned, the drop in late stage finding in terms of valuations that we saw the crash from valuations from 2021 which was a blockbuster year they are starting to see unravel now was really showing how there were a lot of companies that had valuations that were not sustained and with female founders, there are always a lot more i wouldn't call it conservative but smarter, more realistic about the projections and what they can do and therefore the valuations are sustained. that's explaining the numbers of why the drop has not been that much for the wider market. emily: i'm not going to argue with your adjectives. talk to us about the sectors that are seeing the most growth. we were talking about health tech, self-driving tech.

the narrative is different for all of them. >>6 the good news is that women continue to innovate in all sectors. we see the data where there's a lot of growth in retail. some of the top unicorns that have female founders at the helm our health tech and software-as-a-service. we are seeing a lot of growth in retail health tech fintech and sas. women continue to innovate across the sectors despite market conditions even if they are in a sector that is being hit hard right now with market conditions. there pivoting and figuring out what next. emily: how are dynamics between

lps and gps changing? there's a lot of money sitting on the sidelines the venture capitalists have raised. does not necessarily a place to put it all. >> thank you for asking all of that. the lp and gp connection is when we focus on a lot of. you picked that up rightly despite what has been said about the fundraising winter. it is clear there is a dispersion. winners and losers and firms that continue to raise billions of dollars. we have a lot of dry powder sitting on the sidelines. lps are being a lot more cautious. the word is we are optimistically cautious about the way forward. despite money in the bank, a lot of them are being slow to deploy. while you are seeing money being passed on to gps, this doesn't necessarily pass on to the founders which is where they are

feeling the crunch. the winners will emerge and it will be more more important to see founders emerge in this crisis. i think a lot of the big names you and i know like uber, airbnb emerge from a ton of crisis and this is going to be a good time for gps that are focused on what next. the next generation companies to do the right thing. emily: thank you for sharing all of that with us. it's worth checking out your report in more depth. friday, peter kern will talk to us about the travel rebound or lack thereof. this is bloomberg. ♪

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