hosted by our own frank holland. it's not football night, it's crypto night, 6:00 p.m. eastern. all right. that's going to do it for us on "squawk on the street. have a great long weekend, everybody. we'll see you back here on tuesday. tech check starts now. good friday morning. welcome to "tech check." i'm carl quintanilla with jon fortt. deirdre's off today. a big show this morning. the key question, what is the state of demand in the economy is i.t. spending slowing, doing just fine? we've got three enterprise software ceos to give us some guidance snowflake, "z" scaler and auto desk two additional adapt points on the optimistic side, good earnings from dell and marvel today. those stocks are rallying. and on the research front, is it safe to buy now? ubs says, yes, investors can start increasing exposure as the nasdaq looks to break a seven-day losing streak, but not everyone agrees. citi is still cautious they reiterate, underweight, adding the bubble could continue

to deflate, john and as for mixed signals, on a day where workday is down 10, but dell is up 11, and z-scalers is up 8, it's not clear cut. >> the question echoing through my head thris morning is why no buy now. that's not my way of telling anybody to buy or sell, but the question is, given how far things have come down, what do you have to believe about the macro picture, about the demand for technology, et cetera, to think that these valuations are not attractive so, you know, you know me. on the other hand, right i like to test out both arguments. and i think so much, we've been talking about, you know, the bottom falling out of things but eventually, you reach a point where some of these growth stocks that have good technology, where if you've got a time rhorizon that's measured in years, not in seconds, it actually makes sense to buy. that's the question that i want to explore in this hour with the many great guests we've got.

>> yeah, i mean, as we said earlier in the week, john, a lot of it's going to come down to your client mix. we've got the likes of elon musk saying that bankruptcies need to happen, right? and we've talked a lot this week about the sly deck at sequoia, the urge to start focusing on cash flow, recognizing this is going to be a difficult period, a difficult slog for not the short-term, for at least the medium or long-term. and those clients, there is risk in whether or not some of those clients continue to increase their spend. let's dive into the enterprise story today. our next guest does forecast a big pullback in hiring and discretionary spending expecting it to hit hr and marketing first, before spreading to other areas joining us today, bessemer venture partners, byron deeter what a treat to have you with us >> always a pleasure great to be back on a green day in the markets before a holiday weekend. >> we've got one dow may go green for the month we'll see. but i wonder, to the degree that you are starting to see

departments rein in spending, where do you start where does the company start >> well, i think the most impressive thing to date has been the continued outperformance of tech companies, and it really has been all about valuations, the interest rate reaction, the multiple question, et cetera what we do think will start to happen, though, is the boardroom conversations are going to roll through to spending, which is that just about every board room in america certainly in tech and enterprise is having the growth version cash flow discussion how should we think about tuning these dials for more efficiency? the implications of that are going to be slowdown in hiring and discretionary spending cuts, as these companies are looking to rim that margin, the burn rate to increase the margin profile. we haven't really seen that to date but i absolutely expect that the earnings updates are going to start to roll through, where people are going to do those trade-offs and you'll see a few points of growth given up for more than that on the bottom line impact over the coming year and it's a conscience trade-off, given the increase in cost of capital. >> right

where does i.t. spend and really, i guess, advertising, as well, are those one of the last to get cut, one of the first, somewhere in the middle? and i guess, in terms of seasonality, i mean, we're still more than six months away from year end i guess, next year's budgets are starting to get talked about now? >> they are. and what you're seeing is, there had been some tech debt and so a lot of these enterprises, as they were investing in covid responses and distributed systems, they have the infrastructure needs that need to be attended to. and so, i think that those will be back burner priorities to be cut, meaning that they will be forward projects to address. however, things like payback on sales and marketing spend, that companies used to be able to spend at a two-year clip to get a two-year payback when cost of capital was low and valuations were high, that's now come in, where companies are looking at one-year paybacks. and as a result, you're going to see cutbacks in marketing budgets first and foremost, things like recruiters and

recruiting software are going to be slowed down a number of companies are starting to roll that through. layoffs are starting to happen as well. so you're going to see some flex that's why it's not surprising that companies like workday and core hr tech exposure are seeing some softening, and we expect that to roll through some other names, as well >> okay, byron good morning, it's john. so we've got z-scaler and auto desk up 8 plus percent so far this morning so i'm going to ask the question that i asked at the top of the hour the why not buy now question i know that you've generally, of course, been bullish on the future of these innovative tech companies, especially, when it comes to the cloud and sass, but what would have to go wrong? whether it's a longer, deeper recession than some expect, that changes the p\e calculation, the revenue calculation here what would have to go wrong for this to be a bad time to buy >> so, i think that's a question

we all need to be asking right now, because these companies are down to six and eight times revenue right now, six times forward, eight times run rate. which implies at a 40% long-term net income margin, that tlahey'e really trading 15 to 20 times p\es on a pro forma basis, which is really a bargain, even excluding long-term things like hypergrowth tam markets, technology disruption, et cetera so these companies that are growing rapidly, you see z-scaler posting 60% plus growth rates and approaching 20% free cash flow levels, are some of the best names in all of the industry, nonetheless, tech and software and so, at some point, people need to step back and say, we've seen it before we've seen adobe, we've seen viva, we've seen cloud companies run their mature models, high 30s free cash flow

that's absolutely possible for the majority of these companies. they're just not yet choosing to do that, because the investment prospects are way too compelling so you're going to get both. you'll start to see a little moderated growth, but still hypergrowth by broader standards and high free cash flow leverage i admit, we got out over our skis last year, as these multiples were deep into the double digits. we're seeing single digits and low double digits for premium top names. and i'm not calling bottom yet, but we have to be near it. these are bargains, if you look out a couple of years, these will be worth more >> how much does a bottom really matter if you've got a time frame that's more than a couple of years but people are scared, understandably snowflake was up near 400. now it's out 124 you know, z scaler, let me see, it was up also around, let's see, 1350ish, and now it's down 150ish but, you know, like you said, if

you've got 65, 60, 85% year over year growth rates, how long can that continue, though? >> well, i think that's a great question i'm excited you've got frank on the show later ask him, where they were posting over 100% growth rates, they've given a forward guide down 66% or so. while generating significant free cash flow it's a staggeringly good business they've got dials to turn either way, and they're just playing with those trade-offs, as their cost of capital goes up, they're saying, we'll pull in our payoff periods a little bit for those troughs. but i've got to believe we're near fundamental valuable for these businesses and i believe there's a lot more there. i believe they're leading a tech transformation we're seeing this in tech. and these are the names that are driving it across the cloud computing industrye a trader pls a few months, who knows. we've got massive volatility, macro uncertainty, geopolitical that you're dealing with so people are moving money da around daily to get these

spikes if you're looking to move out several quarters or several years, names like this you can put in a drawer and will be worth more in the coming years the multiples can't come down that much more, and the organic growth rates will power them through to stop gains in the years ahead. >> that's a good way to put it there are an awful lot of trees and they're trying to see the forest through all of that volatility good weekend see you soon >> you as well, cheers >> let's dig into one of those names we just mentioned. zscaler, citing strength in cybersecurity and ceo jay is sh sh shelldry joins us this morning it's no surprise that security is one of the top concerns >> that is correct thank you for providing me the opportunity to hear my thoughts. cyber a big priority, but in addition to that transformation, it's a transformation to make businesses more competitive a priority, with markets getting a little bit uncertain, cost

savings and consolidation is a big priority and zscaler actually provides all three of those >> of the guidance you gave, you know, we're in a period where arguably, companies are no often rewarded for good guidance, just because of the sogginess of the tape so how good does it have to be for you to put promise, some of the numbers that you gave us on q4 revenue on guidance, it's generally pretty prudent we look at the pipeline, we look at the house of business, that's when we come forward i think what's good about zscaler is not just that we are growing our revenue 60 plus president year over year, wher also having strong free cash flow margins the two together is beating the rule of 70 colourrently and we think we can do better and that's based on our customer engagement some of the largest companies want to become more agile in this market. we hope they'll be comparative and will become more secure.

we have become a trusted name by some of these largest companies out there. >> jay, i believe you projected total revenue of $304 million to $306 million for fiscal q4, where the street was looking for something around, in the low 290s in this environment, that's encouraging, impressive, perhaps. but give us some texture here, some color what industries, what geographies to the extent that it's outside of north america, western europe, what's driving that in particular which customer sets are particularly confident >> so, we had dominated large enterprises who trust us, who depend upon us for example, 40% of fortune 500 companies trust z scaler 30% of global companies are impacted by zscaler. in fact, in the last two quarters alone, we added just shy of 80 fortune 500

companies -- sorry, 80 global companies to our customer base and these companies in these harder times need to become more agile. they need to eliminate a lot of legacy, security legacy network that's setting out there, costing them a lot of money, making their user experience slow so these are the customers who are saying zscaler, you have a new zero trust architecture which is simpler and safer so i need to eliminatelegacy type of firewalls and vpn type of security, and they trust us, because they've seen us do this transformation time after time and that's what gives us confidence that we have a good business >> how much momentum in particular behind the large deals. you've put some numbers out there, 1891 customers spending 100,000 or more in annualized

recurring revenue. 288 customers spending 1 million or more. what differentiates those customers, why are they spending that much more is that sort of a share of wallet success that you've had there? and to what degree do you expect that to continue >> it is actually driven by roi and cybersecurity, both. when z-scaler gets deployed, every dollar a customer spends on z-scaler, we are able to save them four, five, six, or seven dollars because of the legacy. they have network, lots of security appliances. we go in and show the customer that we can do three things for them one, rereduce cost and complexity two, we improve the security posture.

and the user experience goes up significantly, which means their business productivity goes up. the value proposition of z scaler is very compelling, and it's very compelling because of the zero-trust architecture we built, when i started the company, i had no legacy firewalls or vpns or boxes to worry about. i start from a clean slate it is like tesla starting as a clean engine and having to remove the old legacy internal combustion engine kind of cars on other vendors are trying to take the legacy staff, trying to bolt on zero trust on top of it. it just doesn't work that's why our architects are working, it's delivering results, and customers are trusting us and depending upon u us >> finally, you did say in the call, we're not just growing rapidly. to what degree are you trying to install some newfound spending

discipline >> you know, my cfo and i have always been disciplined in investments. remember, i started this company with my own money, my own funding. so we've always been prudent, but we balanced the two. we have been actually generating free cash flow for quite a while. and our projections are very good so are we going back investments? not really could we invest more and grow some more? probably yes but we are striking the right balance, where we think the rule of 80 can be achieved by us and that's what our forecast is talking about. >> jay, definitely one of the bright spots today in tech we appreciate your candor in coming on. we'll see you next time. >> thank you so much i appreciate the opportunity and we're not done still to come this hour, the ceos of snowflake and auto desk, plus we've got an upgrade of roku to talk about "tech check" just getting started.

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welcome back to "tech check. elon musk being sued by twitter shareholders who allege that he engaged in market manipulation julia boorstin has more on how this might play out. julia? >> well, john, there is a lot of twitter news this morning. twitter shareholders filing a class action lawsuit against elon musk and twitter alleging that musk violated california corporate laws and engaged in market manipulation, claiming that musk benefited by delaying his filing of the required disclosures for his stake in the company. the lawsuit also saying, quote, musk proceeded to make statements, send tweets, and engage in conduct designed to create doubt about the deal and drive twitter stock down substantially in order to create leverage that musk hoped to use to either back out of the mches or to renegotiate the buyout

pr price. this morning, the ceo revealed a letter in which it questions musk about why he did not filed his disclosure within the required ten days from the date of acquiring twitter shares. twitter stock is down about 18% since the deal was announced yesterday, the company said it was moving forward with the deal as originally negotiated at $54.20 a share also at yesterday's annual meeting, shareholders voted against the re-election of silver lake co-ceo to the board, but the company said in a regulatory filing that it will not accept that vote twitter saying that it believes durbin wasn't elected because of concerns that he served on too many boards. the filing say that durbin will reduce his commitments to other public boards from six companies

to five. twitter saying that, quote, accepting mr. durbin's tendered resignation at this time is not in the best interests in the company. certainly seems like an ally of musk's on the board. >> julia, it seems that on the one side, elon musk is gathering more evidence that he's preparing to buy twitter, but on the other side, he's also not been clear that he's going to stick to his original last and final offer of $54.20 a share. is there a clarity on the status of this. and there was a bot thing. he was concerned about bots, but we haven't heard as much about bots, at least on twitter from him in the last few days >> yeah, a few days ago, he raised red flags saying, hey, this deal is on hold until we resolve this question of how many bots there were but as of this shareholder meeting, john, the company said

they weren't going to answer any questions about the deal other than that they were moving forward with it as planned and the fact that musk filed that additional disclosure saying that he was going to be raising additional financing and potentially keeping jack dorsey around, as an investor, rather than having dorsey sell his stake. that filing would seem to indicate that musk was moving forward as planned, so certainly a lot of hints dropped about potentially wanting to renegotiate, but the company does not seem interested in that and no details from musk on what he might be going forward in that regard. >> stick with us, julia. we've got this call on roku. pivotal upgrades from sale to hold they say the valuation is now at levels they think are reasonable no longer an attractive short. still, they note the concerns that led them to the original sell rating haven't really changed, including the potential for recession, the emergence of a top cable provider going into streaming. they also say the ad tier over

at netflix, julia, could help them a bit they say in addition to valuation, maybe some easing of chip shortages, as well. not quite as bedevilling as before >> yeah, but look, carl, this is really a question of valuation, at the end of the day. roku shares down about 60% year-to-date and then about 74% over the past 12 months. this is a company whose valuation has come down so drama dramatically two interesting pieces i would want to pull out here. one, they believe when it comes to an overall ad recession, they believe this type of digital streaming television ad targeting -- advertising, which has targeting capabilities, will be better equipped to ride out any kind of contraction. and also, they think a potential recession could shift more people from paid tv over to streaming. and that would also benefit roku john >> yeah, roku might be the walmart of streaming we'll see. i mean, lots of people go in there to get streams a lot of people forget julia, thank you

coming up after the break, snowflake ceo shares rebounding off of yesterday's lows. at least they were, down fractionally right now plus, take a look at the nasdaq composite. on pace to break a seven-week losing streak. it could happen. tech check returns after this. miss allen over there isn't checking lesson plans. she's getting graded on her green investments with merrill. a-plus. still got it. (whistle blows) your money never stops working for you with merrill, a bank of america company. at adp, we use data-driven insights to design hr solutions to help you engage and retain top performers today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪

welcome back to tech check i'm carl quintanilla with jon fortt. take a look at apple and amazon over the last week big tech has led this rally that we've seen over the last month it's been other names outperforming those. some of the year's biggest laggards leading to the upside meta, netflix. the only f.a.a.n.g. names in the green over that time let's get a news update with our

dom chu. >> so, carl, good morning. new numbers from the government indicate that inflation may be easing the personal consumption expenditures price index closely watched by a federal reserve policy maker increased in april by 6.3% from a year earlier. that's a decline from march's four-decade high of 6.6% and the first slowdown since november of 2020 at the same time, customer spending was up about 9/10 of a percent in prevail compared to march. that's more than the month-to-month inflation rate, but the savings rate fell to 4.4% the lowest level going all the way back to 2008 and the white house says today, no decisions have been made yet, but "the washington post" reports the biden administration is currently planning to cancel $10,000 in student debt per borrower the post says president biden had hoped to make an announcement this weekend, but the timing has changed after the texas school murders, so we'll keep an eye on that story.

john, i'll send things back over to you >> dom, thank you. after the break, an exclusive with snowflake chairman and ceo frank slootman on an important quarter. don't go away. joel, since kansas, we've taken our own path. we've never done what everyone else did. we took on the fear. we ignored the doubt. we lov the excitement. we believed. even when our path didn't make sense to everyone else, we kept going. we keep going. until our path is the one they wished they had taken. ♪♪

at adp, we use data-driven insights to design hr solutions to provide flexible pay options and greater workforce visibility today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪

self-driving cars. so you can have more success our power grid. water treatment plants. hospital systems. they're all connected to the internet... and vladimir putin or a terrorist could cause them all to self-destruct... a cyber 9-11 that would destroy our country. i'm dan o'dowd and i wrote the software that keeps our air defenses secure. i approved this message because i need your vote for u.s. senate to send a message... congress needs to fix this.

let's get a gut check on amazon today another bullish note out, this time from luke capital the firm reiterating its buy on the stock, calling amazon a stalwart with a defendable mote, saying that if unit economics can rebound by 2025, the stock price could double although loop adds that they misjudged the impact of inflation in the near-term firm has their price target now at 2,825 amazon shares are higher on the week, but for the month, they are down 9%. the worst-performing f.a.a.n.g. name in may. and don't forget, this name was about 3,700 in thanksgiving of last year, john. >> we've forgotten how much people seem to need amazon during covid but now, i guess investors will have to recalibrate in this new economic environment and another earnings interview straight ahead the ceo of auto desk is going to be with us after frank slootman, who's coming up. we'll be right back.

welcome back snowflake trading about flat this morning, after some choppiness after earnings. the stock was way down, recovered a bit yesterday.

its forecast called for narrower than expected margins. some slowing in revenue that had just been growing gangbusters. joining us now in a cnbc exclusive, snowflake's ceo, frank slootman frank, welcome so you've been growing 100 plus percent year over year, still at about 85 but some concerns about consumption. tell me what exactly are you seeing with certain customers, consumer facing, internet companies that consumed less in the quarter than you expected. and what does that mean for the rest of the year >> you know, consumption is still doing incredibly well. and you know, you look at our guidance, you know, both for the quarter and for the year, as well as the ten-year guidance we give you know, we have extraordinary confidence that, you know, that's going great the thing that people are coming to terms with, that this is not

a sass, you know, ratable revenue recognition model. i mean, recognized on the basis, you know, of what customers are actually consuming during the period they're still under contract, in that sense, it's exactly the same as for the sass model, that every single dollar that's under contract, you know, will end up being recognized as revenue. but from day to day, week to week, month to month, that can vary based on what is happening specifically, maybe people are on vacation, maybe they have a change in priorities on projects any number of things that can cause a surprise for us in consumption, over the contract term all of that will land as revenue. people are trying to see it as macro related. we really have zero reason to assume it is macro related in many instances, we know that it isn't >> it's not macro related. tell me what you mean by that.

because my interpretation, apparently, incorrect of what you are saying, these consumer-facing names were consuming less, because, hey, the fed is trying to get the economy slower, maybe inflation is higher, people are buying fewer units. but there is some macro impact there. no what way is the macro economic situation not what's causing this >> we're not at liberty to divulge exactly what people's internal reasons are but one of the things that's very common, you know, with customers, they go through growth cycles followed by an optimization facing another growth cycle so there's an ebb and flow to it that can show up, you know, at times, unexpectedly. because we guide on the basis of historical data, because that's all we've got to go on sometimes we have insights specifically from the teams as well that we will weigh into it. but there's any number of factors, you know, that can cause -- sometimes the aperture

is just too narrow for people to try to drive conclusions from that kind of data. because we awe some weakness, as we reported in april, but in may so far, things have been very, very strong. and the aperture is to narrow, to draw conclusions from it. and we can only see what we can see. >> okay, so that is why you are not pumping the brakes on cost to the degree that some competitors are. my understanding is that you are continuing to add to head count, because your sense is that the model is working, that this is not a macro impact that you're seeing are you putting measures in place that will allow you to hit the breaks if this develops in a way that the das changes and did i characterize what you're doing with costs correctly? >> i think you have. we have an extremely high growth business at scale with upgrading efficiency and profitability and everything is going great. i see no reason to hold back i'll end up regretting that

later on that said, you know, we literally observe revenue on a daily basis. that's very different from other companies. we can see what our revenue is on a daily basis we have a very refined grasp on exactly how our business is developing week to week, day-to-day, month-to-month and we can adjust, if we need to we have a business we want to invest in, because it's yielding tremendously >> frank, i think that's interesting. i wonder what you make of some of this newfound cost discipline in the vc world, and are they overdoing it there and i notice on m&a, you say there could be some interesting opportunities, maybe not huge, but that's something you're not completely discounting >> you know, unfortunately, i've been around a long time, and have been through, you know, more than one of these cycles before and every single time, the vcs send out this end-of-days messages, batten down the

hatches, and days later, it's a distant memory you have to take that stuff with a grain of salt. people are overrotated on the plus and overrotated on the minus. and i don't think that's all that helpful >> what are you doing when it comes to employee compensation, to morale, you and i have talked before about your approach to who you get in the door, in the first place. and how motivated you want them to be. no pats on the back, but clearly, some people's expectations on compensation, which tends to be tied to the stock price, have had to shift so how are you positioning around that. what are you tweaking to keep productivity high? >> so the real issue is not that stock prices go up, stock prices go down. we don't ask for stock back when the stock is up, either. that's just part of life what is very, very really is that people that hire on at lower stock prices, that becomes an inequity.

that we feel we have to deal with and we communicated to all of our employees yesterday that, hey, we're not oblivious too it and we are going to take a very detailed, specific look and we're going to bring that along in our annual equity adjustments that we're making. we're not going to let talent walk out the door, hard-fought, that's super important for us. we were doing incredibly well on delusion, when the sptock price are sky high and we're prepared to do it. >> so sounds like you continue to take the long view. so as you do that, talk to me about these large customers and the momentum that you're seeing there. what are the hills that even as, you know, the market in general, perhaps some competitors are getting a bit timid, what are the hills that you want to take? >> you know, we're very broadly

invested, not just in every geography, but also in every industry so, we touch everything. you know, what's really interesting about our business, the way it's developing is that we're becoming very, what we call, mission aligned with our customers. meaning that we have ceos from hospitals reaching out to us and they say, we have a ton of data we know there are insights in there that can add to people's longevity and quality of life, save people's lives, and that's what we want to do but there is a huge gap between having all of that data and envisioning the outcomes that you want and that's where we're going to insert ourselves it's very exciting it's not just in health care, but in every industry. it's in advertising, in retail, in manufacturing, and those conversations really dominate our reality right now. it's no longer moving, legacy,

on-premise work flows through the cloud. yes, we're continuing to do that but the conversation has very much shifted towards industry-specific challenges and what data can do to them to enhance and further their missions >> is the competition and cooperation with the hyperscalers, aws, azure, google cloud, has that dynamic shifted in this environment at all the competition as well as the cooperation? and how they operate in the ecosystem? >> well, i think these relationships have all incrementally become better, you know, over the last three years that i've been here. i would not say that sort of that this location, that the world is experiencing right now is changing one way or to the other. we're actually quite pleased how those relationships are developing they're really maturing and they're more grown-up and more reasoned and you know, less aggressive and less reactive than it used to be in the early days. >> okay. and finally, on net revenue retention, you're still there in

the 170s how do you expect that to trend, even as, you know, these meteoric growth rates, doubling year over year, maybe comes in a bit. what do you expect to happen on net revenue retention, and is that an area that you're pointing investors to to watch for the health of the company. >> we've said that we will leave, that we'll stay north of 130 for a very long time it will come down over time. but one of the things, that is driven by the consumption model, ri right, because there's no lid on our ability to grow, because customers can consume at will. there's unlimited capacity and infrastructure more them to do it so some sell-side people have a consumption model, it is the explanation why we have such tremendous growth and why we

have such great net revenue retention rates. >> all right certainly a positive tone. for now, the stock's gone green. >> speaking of going green, dow is just going green for the month of may and the s&p just about five points away. as we go to break, quick programming note don't miss a cnbc special, crypto night in america, 6:00 p.m. eastern tonight, with our frank holland. you don't want to miss that. we're back after a break zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. ♪ ♪ i came, i saw, i conquered. (all): hail, caesar! pssst caesar! julius! dude, you should really check in with your team on ringcentral. i was thinking like... oh hi, caesar. we were just talking about you. ha ha ha.

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welcome back let's turn now to autodesk shares surge this morning after beating the street in the latest earnings, delivering record revenue in the quarter, but lowering the guide for the year. so with the igv already down about 30% in 2022, is there even more downside ahead for software well, joining us now in an exclusive interview, autodesk ceo, andrew anagos so you've got growth here, but an uncertain macro economic environment. and when i think of you, i think you've being an important part of the pipeline of things getting made, things getting built. what are the signals telling you about the rate at which things are getting made or built and digitalization how much turbulence is there

>> yes, see, that's a great point, john. people aren't reacting to the quarterly results. they're reacting to the resiliency of our business and what it might signal to the broader kind of health and long-term strength of offer business and we were which is a big indicator of forward looking activity and things associated with that continued to grow through the quarter. there was a little pull back as invasion of ukraine happened in europe that pull back was kind of contained within europe. then monthly usage began to grow what you saw was lot of people using and renewing products in anticipation of future work and a lot of people tooling up to do work and that's what people are reacting to, the resiliency and forward look. >> tell me to what degree do labor shortages, people to

design and build these things, the component parts, raw material shortages that keep things from being built, at a certain point do those slow down spending on those services and software that enables that process? i imagine you had awhile to deal with that. to the extent that war continues, other factors, inflation continues, how much does that hit your business? >> jon, number one thing we hear from customers, obviously you're reflecting this, they're having trouble hiring people. and they're struggling with the time in which it takes to get things delivered on site, whether they are manufacturing something or building something, building a building at a construction site. however, what they also have is a very large backlog of business while they have some up front delivery challenges with regards to delivering the building, the product, labor shortages getting in the way of some things, material pipelines getting in

the way, they still have a large backlog of business. that's kind of what's driving the usage of products. yes, all of the things you're talking about are constraining, right now, we don't see it translate into a slowdown and people using our products and trying to get things built quite the contrary, people have a large backlog of business. >> andrew, is there a way to quantify the mix between the way in which your product is being used for new construction versus remodel, for example >> yeah. it is interesting. i can't tell you exactly what that mix is but there is absolutely a balance between new construction and people reconfiguring existing space there's a lot of activity going on around reconfiguring existing space, a lot of architecture firms will have a large backlog associated with reconfiguring existing spaces versus building new spaces however, remember there are lots

of investment in infrastructure trickling into the ecosystem now. you saw that in some of the q1 results, some of the biggest customers are investing in solutions to get ready for what is infrastructure work. >> we forget, we have that in the pipe now i wonder, we talked a little about extended reality, augmented reality and ability to envision a new space using some new technologies are customers beginning to demand that, how much investment will that be in years ahead? >> customers are beginning to hope for it, all right it is not so much becoming a demand, because the hardware is catching up to what customers need to do on the work site. however, customers are exploring in lots of interesting ways how to use this stuff to deliver a project more effectively, make sure what is spec gets built look for us to integrate more and more capability into our

technology moving forward as the hardware matures and as the consumer demand environment starts to mature they're getting wide from these things. >> take the long view. appreciate it. the ceo of autodesk. >> have a great weekend. >> you too if you missed interviews with the ceos of snowflake, autodesk, want to relive it with your eyes closed for the long weekend, perfect time to listen to our podcast don't forget to follow and subscribe. tech check is back in just a moment

humans and dinosaurs can coexist. one more thing, a sign of how the market has changed "new york times" reports substack dropped efforts to raise money as venture investments have cooled. the times reports the newsletter company had been holding discussions to raise money at a billion dollar valuation, while telling investors it made $9 million in revenue last year 9 million. that's not exact com of buzzfeed, 4 bucks a share, hasn't traded well since the

merger revenue on that one in the hundreds of millions, carl >> today, regarding spaks and percentage listed in '21 a and '22, 10% filed some kind of going concern filing it shows you the danger which we talked about at the time of having projections that far out. >> indeed. and there's a difference between being popular and having a great business model in good times, you have time to draw the line from one to the otr but all right, rip good times to borrow from one of the vc missiles frank talked about good times often come back, especially in this capitalist system we have here, carl. >> i thought his point about having a couple of cycles, vcs freak out on the up and down side interesting context to what's a big story this week. as for next week, two examples

of growth stocks being hit hard, among the tech names reporting earnings sales force, hpx tuesday interesting conversation with davos. couldn't get a lot in the quarter, that's key given all we heard about, concerns on spending on the enterprise side, client risk, how much of the clients will continue to want to spend the way they have been. >> that was a downright encouraging conversation we just had with frank about how he was saying the man continues to be strong, they continue to hire. sounded like he was saying they would reprice stock based compensation, want to keep good people doesn't seem like they're freaking out yet we'll see. could be early in a difficult cycle. >> and that's for today in terms of macro picture a lot of the core pce number coming in a print below 5% for

the year again led to a brighter picture, better price action the dow green for the month to date s&p is close we have more wood to chop next week, including the jobs number next friday as macro analysts are looking for signs of cooling on the pricing front everybody have a great long weekend. let's get to the judge welcome to the halftime report scott wapner front and center, streaking stocks the question all of us are wondering, how much more can stocks rally we discuss and debate with the investment committee rich saperstein, steve weiss, jon najarian, and jim lebenthal. check the markets. stocks on track to break the longest losing streak in decades. as carl said in the last hour, stocks positive for may or the do