40 Burst results for "CFO"
Fresh update on "cfo" discussed on Gold with Jeanette Schneider
"Well, you've heard athletes talk about that yet. They visualize themselves making the shot. Yeah. My daughter Plays Golf. She visualizes that ball she visual she imagines the resonance of the golf club hitting the ball in seeing where it goes in the same thing with a softball bat we're just talking about what it feels like they hit a home run. There's a resonance in in. A good. A good athlete can envision in really feel what that feels like in. You know it's study that we forget in our visualization that feeling is just as important as building that image in your head not only do you envision what it looks like you feel what it feels like it living in that feeling of what it feels like that it actually becomes true. It's interesting. It's like I feel like that's something that you must have to. You have to practice on a daily basis. So if you're especially if you're building a business because as an entrepreneur I, completely understand especially with a virus the Oh hell, what's what am I? What are we doing next? What's the pivot? What like? How are we handling this and you could operate from that place of fear I have to actively talk myself into the future? Of of what I envision and what I see and I have a lot of people like, how are you doing? How are you going to make payroll? How are you going to do this? How are you going to do that and I'm like, please stop asking me questions I don't WanNa talk about it anymore you know what I mean it's almost like I need in my mind to see that future and I think any business owner does right now. These things are so strange I think anyone that's creating the business There's there's definitely. There's definitely the work that has to be done a friend of mine and I were talking about this recently because we're both really good at visualizing the future. And she's like I've visualized this amazing thing and then I, forget my company's not there yet. So I have to do a lot of work. I mean, it goes hand in hand. Well. I know I just took this new assignment in. I I stepped into it visualizing what the outcome is going to be, but yet the day-to-day it feels like I'm in A. Just a hailed here last night in those tiny little marble sized hail balls. You know it feels like, I'm up to my neck in Marvel's like that it just it feels like I have to move. So slowly to try to make something happen because the. Picture is so crystal clear I forgot that I've got somehow impart that vision to all the other people that I need to make it happen. Yeah. At so much harder. That's why we need help in honestly when it comes to making that vision come true I, have to say that. I've become a big believer in finding one mentor. And in following that. That Guide and you might end up at the end of this period of time you might end up saying thank you very much now I'm GonNa go work with this mentor but I think sticking with one mentor at one time is so important because in my mind A someone who has already demonstrated that the path works. I I spent a whole lot of money in building my own business working with multiple mentors. And hoping to piece together a plan in ended up being a mess. and. I committed myself that I would always help people to find the right mentor to to help them carve the path. It's right for what they're building. Yeah. Actually I've been working with an executive coach for about three years and he's amazing. He's giving me so much. I don't think I would be where I am had I not grown my confidence through our interactions and getting really clear and and all of that stuff and having someone outside. Be So. Objective and Christly Chris Line in the way that he communicates with me, it's like very kind but firm. And then I had one these free coaching sessions. That I took a couple of them and finally at the coach and I was like, Hey, I feel like this is redundant. Like I've already I'm already on this path and like even though these are free gift them to someone else. This doesn't make sense for me But one of the things I think that was so valuable about. Having someone in your life that you work with as like your specific mentor or whatever. But I also have a lot of advisors I have a lot of people who very specific skill sets that match specific areas of my business. So I have a friend WHO's a CFO. So. If I'm struggling on the numbers I can call him and he's like I've got you what do you need and he'll send me his calendar Lincoln let me book an hour of his time i. have another friend that's an author, and they're like look over your your wording of someone who's a therapist who can look over some of our coaching stuff. So it's it's nice to have that person that holds you accountable but I also think it's really important. Also find people that you trust that specialize in certain areas. Who can help you I think that's been such a huge boost to my well and especially to the length of time, it takes me to make a decision. Right I know. So. You're on a good path I think it's really smart to just stick with one voice of Wisdom. Absolutely what do you as far as? As far as this platform is concerned I I know that you know the name of it is love is viral, and so the whole premise of the platform is that. We want to. Make love go viral, and so I'm curious from your perspective how are you doing that every day or what would you advise other people to do in order to make that happen? I love it. You know I love the name of your APP and you were on my podcast I was so excited about sharing. This whole concept of making goodness viral. Working on an epidemic kindness campaign in the town where I am right now and You know there's a there's a community I can't remember where in Colorado that has signs in the yards saying. the only thing stronger than viruses hope. So the concept of creating a viral effect, an epidemic effect is that it spreads.
Fresh update on "cfo" discussed on Unofficial Partner Podcast
"Great for old like Music Mentor on the other great to give something back by what the foundation do. What's what does the marketing industry when you think of it? What is it sort of looking sound like from a diversity perspective? Not, as diverse as it should, you can cut this. Several ways. Let's start with them My I find the supply side agencies. Overly. Focused on use. Slightly Ages in their outlook is obsolete decide with migraines. I'm sorry. If you look at a typical media planner is probably twenty, six, twenty, seven lives in a media bubble they consume and doesn't understand the media, the people who make. The wealth of this country. Do conceive. So you've got that end of it the other end much more importantly. United States. Gender Balances Being fixed on my last. Job I was delighted when I left to believing a company that had a CEO, a CFO, both on the main bowed by women. Really remarkable and actually achieved by the boards focus on driving diversity in next up. is driving the BEIM agenda. Actually if you look in marketing. We do not represent fully the population that we said this is in stock contrast, for instance, if you look at the front line of. Let's take a bank in front line of. The NatWest Group looks exactly like the population that says great mix of. Old Colossal, he's all genders, sexual preferences, and that's the way it should be but we're not there yet in terms of the marketing industry in a way. You know what the foundation of doing is to try and put that right to make sure that we have diversity. Of everything including cognitive diversity which I. Think is also important people think differently. This is a sort of. An OBE is brexit parallel. There isn't a you know me in terms of the way you say about the when you and I agree with you go into an ad agency it's important because ad agencies are communicating messages. And the media planners and and they offer a certain social sort of group which. Again the argument is that they know. And you get into some tricky territory, but they're not living the lives of of ordinary people is that is that that's a problem when it comes to marketing general is that's more than. EMBIID. That's why not one of the. Keys. To being a great marketeers to be curious about people and understand people will sex and sizes not think there. was. A Robert pasted in. He wrote a book, The name Chapter Which W. T. Longhand that. The opening chapter of which was basically him apologizing to his father. Because his father used to tell him that he lived too much in a London uppal in a middle-class bubbly didn't really understand what was happening up and down the country and I was a conversation that they didn't have his dad was alive incredibly moving chapter because he explains that he's sorry to his diet because his true and it was brexit proved it to that he hadn't been attached to the country and how it was feeling up down and I do think that's a danger thr- agencies to make sweeping generalization terrific agencies that attach themselves to customer and consumer inside doing the sandwich gathering of. The. Let's talk about your..
Fresh "CFO" from The GaryVee Audio Experience
"I just such a big fan of it because it has such proxies I loved when my or it's like doing business in China or Russia the Naievety of America going doing business in China is so funny to me. They. Think it's the same rules right or when you get a tough guy into mixed martial arts because they were good at boxing. It's a different sport man like, so know it in our things but then in business we do the same shit. We make fun of people who don't work out consistently and think like a pill or drug is going. Do you gotta do the right things GONNA eat right? But then business those saint like all the muscle heads on instagram that the make me laugh so much discipline in the gym and the way they eat. But in business or looking the shortcut, which is exactly they make fun of fitness. Right like epochal all my all my fucking buffed out buddies are like, no no but Gary, what's the fuck in? There is no steroids fucking business. You know like. It is what it is my man. Thank you brother I could tell thank you for the month. That's awesome. You talked about east of guess. What what do you do the best way to gain touch? Would you still media company? Did you have a better so I've done much better with my bb investments that might be the investments in helping them on social media. You literally know the names of the people you're trying to reach. I mean that's insane. You know awesome that is being has been a gift compared to wine library. Anybody potentially could have been interested in buying wine beer and liquor major media. Super Simple. Mike the Craft and proctor and you know Toyota and Pepsi. So I would make content on instagram. Excuse me on link didn't facebook. With dollars, targeting employees of the organizations that you're trying to get to guys how many people be to be in here. So just for a couple of you. Great. Hire hands just WANNA fence. Be Scared. Okay. So to me, there's a if back to the last question right being practitioner. When you run a facebook ad, you can run against anything. How many people here have spent one hundred, thousand dollars on facebook and they were the people that clicked the buttons made the creative hand. To this is huge. This is huge. This is a huge opportunity. When you become a practitioner facebook ads, you'll shit your pants of how good it is. It's incredible. You can run ADS against. Employees of. A company that you'd love to use your product. Give me one. What's that? Your sir. Good. You could literally make a video that targets their employees on facebook. And literally, the creative, the writing or the video says does your CEO? No. And you could literally forward it to them like you can literally target him on Lincoln. It's incredible. You know the names so but you have to make the creative smart. So a lot of people to be the CIO or CTO or CFO the person making the decision and people say to me they're not on facebook I'm like I get it. So run ADS against employees of the company and the title of the video does your CFO? No the CFO gets thirteen emails and she's like what the Hell is this she watches it and she contacts you it happens every day DB's incredible social. Yes. Great go to instagram and twitter where they're half assing it and them since they never get any DM's. Cool I got a DM. Instead. of saying my shit, bring them some value lured listen always listen. Figure out what they're struggling with. And give them a make an e book or up or powerpoint or video for free. That takes you some time and money and then DM and say, Hey, number one thing I've noticed in the in the mixed martial arts world is that studios aren't doing the following and it's titled Eleven things you should be doing you'll be three minutes and nineteen seconds you'll give them value and one in every three of them will look deeper into you and give you business. WE HAVE TO START WITH VALUE It's funny women entrepreneurs are always more intuitive to my style of marketing because they've been the ones hit on and you know like sole to. Right. So they intuitively understand they respond more winners value broad front. You know and so there's a very small and smart cadence of hunting and farming bringing value. We need to romance our customers a little bit more. Value. It always wins. Were sold to all the time, right. We're pounded like you know what? Everybody's Lincoln Strategy is. Bulk spam email. Email everybody like I know that some of it works it works a hell of a lot better if you bring them. Next. Man Thank you. My Students posted the on facebook page. What you ask. One question. That I got already. It's. Avenue immigrant. Yes. Yes. Yes. Feel about the stands on nearly in the NFL. Were part of New York. Yes. So, couple of things first and foremost when you're an owner of the NFL, you have to worry about the other thirty, one owners. So the way I would handle it is I get a pulse of what my other thirty business partners thought. As far as kneeling as somebody, you know this is Americans are. oftentimes confused from a kid that was born in the Soviet Union. The thought of not allowing people to. Express themselves in any shape or form including if it really hurt your feelings is something that I'm just not willing to go down that path. So we're gonNA respect our amendments. If we're going to respect number two with the right to bear arms, we're going to respect number one with freedom of speech, and so it would not bother me if a player kneeled during the national anthem, I'm awfully aware that breaks people's hearts. It makes them mad at me for that stance just it's just how I feel about it because I think most of the people making comments about it have never lived in a communist country and what it tastes like to not have the option. They're not overpaid athletes. Overpaid athletes. I listen I understand the stance by the way. The great thing about our country is I'm deeply empathetic and respect the living shit out of somebody's opinion the other way. I would just remind people definitely not overpaid because they're paid based on the reality of what the market conditions created. We allowed them to be paid this way because we drive the revenue if everybody wants to stop watching football and drive that down, they're more than welcome to I. Just you know I've had a lot of fun with a lot of my friends who take the other stance they don't like. Pro Football. But when they're homeys at Alabama and LSU and Texas start kneeling they like their longhorns they care about their Bama Boyz. So it's been really interesting to watch. I have a lot of empathy. I'm super in tune with it because of the. Communist. Freedom of speech kind of thing. It's so given my both my grandfathers spent ten years in jail in Russia because they were Jewish. So I also, really I also have the benefit of having six of eight core friends in college be African Americans, which led to me going to the mall. I four times in college and getting pulled over three times like the big thing that we're missing in our country now is empathy. We're not putting ourselves in other people's shoes and we're letting everything politicized like are we going to make everything a political issue because? Basically we're in a emotional civil war right now, which is cool. I'm fine with every empire should fall. You're. Welcome. WHO's? Five. Now's easing removed husband more Florida's. And you know fair sports haven't seen. In. Signing martial arts. Guys with the UC. What what you think is the future of arts. Industry or opportunistically. What you see? Yeah. Listen fighting is old as. It is court I mean it might. It probably was the sport right? If you really if I had a bet on it, it was the first sport maybe maybe racing you know I'm trying to think about like how down but nonetheless. Venus sports is only football right out. The next two sports that will expand into based on mining interest are most likely East sports.
Fresh update on "cfo" discussed on The GaryVee Audio Experience
"Sell it because they see some other opportunity they sell it that other opportunity was nothing they knew anything about they take the money they put into that that goes down they could have been five years later people don't like to work for some reason sometimes, right so like I never want to sell anything and never have really sold anything. I like working and building ever-greening legacy but I'm also super empathetic and a lot of my friends. Have, sold a lot of companies that they were right buddy media was right Mike Lazzaro eight, hundred million dollars and it wouldn't have been worth. Eight million if you waited for years later, so you have to be smart if it's a moment in time, there's a lot of different variables, Right Bibo Solta all for eight hundred, fifty, million dollars because that was the social media. Platform scares of the two thousand with my space and facebook and Bebo. High Five, and so you got to figure out how real your businesses. And what you're GONNA do with the money, but it's a very personal thing. Right? We're all going through our own shit like so much. And then finally, if you know, you're going to sell it. A lot of US entrepreneurs are not fiscally great like I'm great at revenue. But I don't love the CFO work of maximizing profit. If you decided that look in the next two or three years, you're going to go I highly recommend bringing a strong financial partner whether CFO or controller right because a lot of us and I'm making assumptions because it feels very entrepreneurial and here we're good at the selling part but the maximizing the prophet or what expansion looks like a lot of entrepreneurs get caught when we start getting to that next level and if you're not going to sell going to look very hard at those financial you WanNa. Start prepping yourself. Not. Mike. recited. Thanks. So, much of your material. Is anybody out there action more content on as many platforms as you. Is If, you've ever forget a writer law her. To hung out so Blessed. Or Yeah. Yeah Yeah so so this is something funny that Irish in my team on the creative side probably talk about behind my back, which is this just unlimited streaming content that I'm able to come up with to be very frank is I mean this I just think a lot of Seti. Like and not because I love hearing myself talk which I do. It's just that it's just that I like I'm really going to end up being known as somebody who's really good I think I'm grossly underrated for all the fandom I already have my really can feel it as I'm starting to audit myself against the players of society I. Think I got Lucky that my mom and dad had sex at the right moment. I mean it's the. Seem that. So many of you whether you can sing or play basketball rapper draw or be good business like this was like. There was a reason. I was an anomaly in the `Nigma when entrepreneurship wasn't cool like I've always had this thing and so for me comes very natural I will I have eight to twelve core principles and I'm very good at synthesizing culture and making it feel fresh even though it's the same shit and the only reason people here have been following me a long time is if they follow me for a long time because if you follow me for a year, you pretty much figured out what I'm up to. The reason somebody would stay longer is I'm good at understanding what's happening right now. You you you eventually figure out what I'm up to whether. It's the first thing you ever saw. How many people are actually this is fun for other people say by Chopin's how many of you the first time you came across my stuff actually thought I was a street dick face. They didn't like me didn't like it raise your hands tell the truth it doesn't hurt my feelings raise it, raise it right. So to me, I know that that kind of percentage happens. But I think in a year or if you catch four or five pieces of content rate eventually, like wait a minute, I'm expecting you figure out my gift of Gab makes a lot of people on initial insight where my cursing makes people initially be like this guy's addict face right but but my actions win over over time because what I'm asking for. I. Think that for me. It's the reason I'm worth following long-term I know audio's popping. I know what to do like I'm pushing some people here to make an Alexa skill or a briefing for themselves on pushing like, Hey, do this podcast it's going to matter for him and so for me, it's been very easy. It comes natural. I always recommend for people that it doesn't to use other people. Why do you think almost every podcast that successful interviews somebody else? I'm like one of the only podcast that straight content to your face. Every other podcast interviewing somebody. Because it's hard. You know it's a lot easier. Ask Him questions. So whether it's using another person to be guest or using. One of the reasons I do call in shows is that's an easy way for the ask show for the work right? Because I can just walk into ask her I'd be like this. I'm doing it right now. And the reason I can do it is I know my craft. The reason. A lot of people pay attention to WHO doesn't do. You Want WanNa tell a subtle talent who doesn't know their shit. Pay. Attention ducks. Some people just don't WanNa do q and that's fine watching dunks QNA. I've been able to read people one sack like the amount of fakers I know right now because they won't do an like contractually. In. They don't do Cuna because they're not real. Super easy to memorize something and regurgitate it it's called an actor. So, using other people. You know what else is good using other people at the most macro step one another person interview easy step to QNA. If you know your craft easy step three something I've seen nobody do that I would love to do. I'm just too busy social commentary. I love the idea of taking your iphone times square looking at everybody sneakers and talking about sneaker culture and who's wearing what or going to a whole foods and looking at packages and pricing like auditing culture. It was crazy. It's cool. Right I mean I do it all the time as a person. So much of what I, know like I knew slimane was coming for eight-year-old girls because I was watching culture. Right like I love watching culture. If you're good enough if you've always had intuition people love discovering new bands and then you hold onto the and gets popularly get mad at them because they sold out you know if you've got that skill, try to synthesize that that would be an super fascinating thing to watch or listen to. I wish I did show where I told you what was actually going through my head when I come in to the airport like, do you like like flying so much the watching the people at the airport..
Fresh update on "cfo" discussed on The Marketing Rescue Podcast
"They were never able to catch up Nokia's profits for the third quarter of two thousand eight dropped thirty percent well, iphone sales took off jumping three hundred, thirty percent during the same quarter inch and in two thousand, nine Nokia was forced to lay off seventeen hundred employees around the world. And the smartphone market was now hugely competitive, not only apple and Samsung, but also you have blackberry, htc. LG. And more and Nokia's completely behind the curve and part of why this happened is that during this time period actually shortly before apple comes out with the iphone in two, thousand, six in new CEO takes over named an I'm GonNa get the name wrong olli-pekka colosio. And the culture of Nokia shifts significantly, it was a company that was based on freedom innovation trusts, loyalty and commitment employees basically kind of took responsibility and accountability, and then they had a lot of autonomy to innovate and come up with initiatives and really do a lot from an RND perspective. and. So this new CEO that comes in his background was a lawyer and a CFO man we you know I've worked at a company before suppose, we'll just not say the name big massive organization that did just that right there were struggling from a finance point and then they appointed a equity firm that drove the organization through the numbers and they basically squashed innovation and. To be frank. Culture for that perspective that then drove out. All creative. People. So, it is kind of sad to see struggling company do just that. That's kind of thing that really hurt them in the end is very numbers guy just really focusing on how do we squeeze the best numbers out as possible? So they go through this shift of ownership from traditional Finnish investors into international investors, specifically American mutual funds, and as we know with the stock market, everything is very quarterly based and when you have mutual funds are basically your key stakeholders. All they're really gonNA care about is quarterly profits. Exactly. They have this super nearsighted myopic view of what success looks like and no loyalty to the company no understanding of what the actual real market dynamics and pressures of the company are and what the company actually has to work with. And really, very little incentive to ensure the profitability and stability of the company long-term because that can always just swap it out with another stock in their portfolio if the performance starts dragging, so they're just trying to squeeze as much as they can out of it. And to your point exactly what happened that we experienced with this private equity company coming in the same thing happened here, vision was lost. Innovation was lost rnd was lost all of these things that a company like Nokia who their entire businesses founded on innovation. Essentially kind of came crashing down so that to do something right. But at this point, they went from bad to worse with a running the organization through a numbers and trying to please stockholders versus looking forward and. But would it be too little too late. So in two thousand and ten NACCHIO appointed a new CEO. Stephen L. UP. Previously he was the head of the Marcus of business software division and he became the CEO. And he was actually the first non finish leader in the history of the company. So prophets soared briefly that year but job losses continued as knock you. Work to find its footing and Elope gave a speech to the NACCHIO employees in two thousand eleven coining the term. That's actually been widely quoted in business circles thereafter and he called it. We're standing on a burning platform. That's what he said. He everybody Jeez that's very confidence instilling. Confirm your leadership. Hey, everybody. This is not only a sinking ship, but the ships on fire to he gave a speech in the Nielsen and that a memo to everybody, and you can find this memory online. The whole thing where he talks about knock his business was a man standing on a burning platform. which is very destructive of where they were, but it's still pretty scary when you hear the. So, in a desperate bid to solidify their business Nokia partners with Microsoft announcing in two thousand eleven that they'd be using the windows phone operating system on Nokia Devices and the result was the Leumi, a seven, ten and eight hundred smartphones. Sales were disappointing and in the first quarter of two thousand twelve Nokia announced operating losses of one point three billion euros in the quarter. So of course that follows by cutting another ten thousand jobs. And by this time takeover rumors are running rampant, which CEO work to defuse. But in two thousand, Fourteen Nokia is indeed bought by Microsoft and the once-powerful giants fall is now complete. So at its height, Nokia was valued at over three, hundred, billion in twenty sixteen Microsoft sold the final remaining parts of what was the legacy Nokia business in two separate sales for a total of just three hundred and fifty million pounds. And owns are no longer produced in Finland currently. It's going to said. Says yes it's the epic decline. Yeah. But it's a lesson in how completely completely they misread the industry trains and the companies politics get a new way of success, right? So yeah reading reports of Nokia's internal culture at the time. It's an all too familiar story next something at and I've lived before yes. Where the workforce report attention and infighting among staff and leadership and the executive team was ignoring the actual problems and the state of the consumer technology and the ways they strategically missed the boats and instead of focusing on that, they would focus on restructuring or reorganization right? Because that's something that you can see on the PNL it's instant rights, stike. Ten thousand people and we're going to get new leadership. Yeah. But as we know and if we've seen on the show, that's not a good breeding ground for innovation and. Between two, thousand, four, and two, thousand, and thirteen. Nokia Kiana Wayne Four.
Stephanie Fleming on organization, life hacks, and how she built 'The Happy Planner' and 'Me & My Big Ideas'
"Are so excited to. To introduce incredible Stephanie Fleming. She is a creative entrepreneurs speaker of and wellness seeker. Most notably, she is the CO founder of me and my big ideas creator of the happy planner, and what began twenty years ago as a tiny garage business is now an industry leading lifestyle brand and offers a wide variety of products that inspire customers to live creatively and plan a happy life. Please welcome Stephanie to the show. Okay, we'll Stephanie. We are so excited to have you on the here for her podcast. Thank you so much for joining us. And we are so curious about everything that you've created and your and so I think. Our audience is going to be very very interested in the business aspect of. Everything that we're about to talk about some super excited cool. I'm so excited to be talking to you. Guys for those who don't know. Tell us a little bit about your health. I'm Stephanie. Fleming and I'm a creative entrepreneur. I actually call myself like an accidental entrepreneur. I started my business me and my big ideas with my mom twenty actually over twenty years ago started in my garage with an idea of just one idea for making stickers for the scrapbooking industry at that time and. And really just kind of wanted to do it too. I needed a creative outlet. Yes, but I needed to pay the bills like I. was you know a young mom and struggling to make ends meet, and just really wanting to like. Go out there and I would do anything because I you know I wanted a better life for myself, and for my kids and and so I was definitely you're. You're? The definition of a hustler like I was like I have no money, but I will put in the sweat equity so. We been hustling with me and my big ideas for. Over twenty years now, and we've created everything from paper stickers and now planner, so planners is our latest the happy planners, our latest product line and It's just been such a a wonderful thing for us to get into because we get to share a love for creativity for positively, and that's been kind of where I have fallen in the last probably five or six years which. Not only being an entrepreneur in a business person, but also being able to be the spokesperson for our product and our brand, and that's something that I've been totally passionate about. It's amazing. I'm curious. So, what did you do before you started your business? Were you a stay at home? Mom? Did you have have a job, so I was? I was pregnant when I was eighteen. Not Married had had a baby, and when immediately from high school to I need to find some way to take care of my son and I did in home daycare for eight years, and was daycare provider for six kids usually at one time and it was you know it's honest work? It's hard work. It's eleven hour days for you know for eight years and you know all I to do is be a good mom, and and so I didn't have a college education. I grew up in the craft industry though my. My parents had a manufacturing and distributing business so I grew up from picking orders in the warehouse. To you know watching my parents who are entrepreneurs basically navigate the craft industry and come along with them to trade shows and things like that so I always had that creative bug, and and even as an entrepreneur as a kid I was making little catalog, so you can buy these cards here, my designs and so, but then life hits, and then you have to go out, and you know and do the best you can and and so at the time. In one, thousand, nine, hundred eight. My mom and my mom had sold that business, she and my stepdad divorced and they sold their business, and so she was kind of at this place in her life where she was like okay. I'm ready to start over, I need. She was probably my age now, and it was like thinking I need to start over and figure out what life looks like for me. Now and I was saying I just I want to start something something I want to do anything and so my mom had some seed money and. Like I said I would do. You know so. I stayed up all night trying to find just hustling to find hair. Competitors are advertising in this trade magazine. So that's a potential a mailing list for so anything possible. I was willing to do so. Yeah so it was not like I had this pedigree of an MBA, and I'm going. Go start a business, and that's why I say I'm definitely. An accidental entrepreneur, but I've I've loved it. We'll story. It is very very cool. It seems like you had it in your blood like raped in the beginning. Though like it was something that you're meant to do. I, think so. I think without knowing that that's what it was like. I was just cleaning out. One of the things we've done in quarantine is cleaning out our garage and so all my memorabilia. That's where I found my card. Catalogue of here are the things you combine I'm like I always was. Experiencing entrepreneurship right in front of my is growing up but I never really knew it. In fact, my mom was in charge of all of the creative side of the business, and was the one in charge of new products, and out there trying to find out what creative women were doing next, and so when my mom would go on an rnd shopping trip and take all of us with her. We didn't realize what we were doing was watching her shopping trends and seeing what was out in fashion, and how we can bring that into the craft and creative industries, so when it just seemed like something natural, and now I'm trying to identify people go. Where do you find your trend Mic-? Just Watch I. Just look and so yeah. We were Kinda groomed without knowing that that's what was happening. So cool and so. You had your first business you? You began doing that twenty years ago. And then you landed to the happy planner, which has been a huge success and It's a it's a beautiful book. It's something that you want to. Hold in your hand, and just like carry with you all the time. It's so cute and fashionable. Where did that idea come from? And how? How did you of get to that point? Where like I want to be in this market of making planners? Happy like honestly we've had a lot of great products that of sold weller mckellen's pretty cool, but the happy planner is like it's so me. It's totally me so the the way we came up with. It was pretty much the same process that we did it with anything. As we and my sister is heavily involved in product about men in our company as well, but we watch in decide okay. scrapbooking was huge for a while, and so we were able to kind of ride that. That wave and we've kept coming out with products and line extensions and and then you kind of see that it was kind of starting to taper off. It was not as popular and the products weren't as weren't selling and going doing the having the sell through that they did before, so we're like okay. We need to know what creative women are doing next. which is what my mom did, so we would always be looking for what. What what do i WanNa do what is something that's interesting for me. and and then also kind of searching pinterest looking around water, creative women doing so for some reason on pinterest people were taking just regular planners from staples, or whatever and they were putting our scrapbooking products, stickers and things and making them cute but the scrapbooking don't really fit like they don't fit size-wise. They didn't fit if you're you know the stickers we were. Were to commemorate memories and things, and that's not necessarily the things that you need for planning so I kind of just you know, and they were boring to staples like office supply things. They have black brown different color bays. You know really great. You know what I think. Someone would would think the businessmen would like. And then there was like three designs that were like purple. Paisley or some ugly grandma color. You know I'm a woman, I. I don't want that, so we thought definitely we could do better in design. We could get them more affordable. We could create accessories that would go specifically for them, and then you could put in those accessories like things that are positive so that every single day when you're planning when you're having fun putting stickers out ever, there's this creative positive message that makes you happy that keeps you going, and so it was just a kind of another. Offshoot into what we normally do. What are creative women doing? And at this point? It was like people are busy, and they want to be creative, but they need that little bit of licensed to say it's okay when you're planning your schedule. You can kind of put a sticker downer. Says you can do it or just. Those little positive affirmations make a make a big difference. I love that so much were all about positive affirmations and There's something that I still love about having a planner in front of me like an organizational planner. Where where I. Can you know touch the pages and I can mark things off. It's so different than a calendar on Google you know and I've always I've i. still have a planner, so I love that, but I'm curious because you have built such a successful brand and obviously. You've separated yourself in so many ways by having something very unique You offer as something that's very I would say year to the millennial woman. But how how have you separated yourself with your branding? I'm just so curious about like where your sales come from utilizing social media, you have a huge social media following. So, how what kind of what was your? What was the method to your madness at that point when you started thinking ahead? Yeah, so at that point. We had we had a very successful company in the craft industry and up? Until that point, we had what I figured successful products. We didn't really have necessarily like brand. Following social media was just coming up, but you know there was something about the happy, and I think my own personal passion for the product helped in planning it. No Pun intended. because. I feel like we got to this place or like this product line. I just feel like we need to be able to have a brand. There's gotta be a message behind because the message of the product is so powerful and so really. What happened I mean there wasn't? A Master Plan I love this product so much. That I just started talking about it and sharing on social media back in the periscope days. You remember, periscope yeah. Remember. About it and I just said you know what I would anytime we would come up with something, or we had something new exciting happening in office. I'd like I'm just GONNA share. It's just going to be I wanted to our product and the brand to feel like like we were just friends sharing like. If I was you know to call you up and say Oh, my Gosh I'm so excited. We just got this prototype in, and here's what it looks like. Here's how I'm going to use it and every. Every new products came in. We previewed it on periscope did live Q. and A. is, and and that's before people really doing that and we were sharing the process and the product, and sharing my excitement, geeking out over stickers and a paper planner you know, so. It became I thought there was really no plan other than to share authentically, and that was really before, but you know everything authenticity be authentic was just such a overused catchphrase, but that's what it was because I didn't actually want to be the spokesperson. For our company, and because it's such a team effort, and so I'm not. I'm not maybe maybe I wouldn't had the idea for. Let's let's look into to paper planners, but I didn't create designs, and I not the artist, and I'm not the one who source the product and sold it in such a team so but. In order I felt so passionately that. Don't have relationships with companies. They don't have relationships with products, but they have relationships with people and brands, and if I could be that conduit. To Give A. Personality to our land our company then. I'm like all right. I'm willing to do because I was the one before it was like no, I don't really want to know I'm just I'm fine to not do it, but when I was sharing something, I was so passionate about the following just came. We did not say hey. We want to get to I. Think we're over six hundred thousand on instagram. We didn't have a plan for that. I mean eventually to grow. It takes you get to a certain point. It's like okay now. You have to plan, but we grew our numbers very very organically, and by just engaging with them. You know true engagement and it's. It's not even just the number in the plan, but it's like. Are you engaged? Do you care about your followers? Do you care about your customers and deal you know? Are you engaging that way? Are you doing it for the rise near following? Are you doing it for the sale? Are you doing? Are you doing it because this? Just feel so right to you know. Yeah while you're on that topic, too. Because so cool that you grew organically because. I mean it's such an easily marketable product, but also like how how do you stand out amongst your competitors are? There's other planner companies out there. So what's your differentiating factor with your product? So at the beginning? We were the only ones pretty much doing what we did, so we stood out really quick, and it's almost like I. Always say like it was like. Like when I had my first when I said WHO's very well behaved typical. I am such a good mom. And then my daughter came a second, and she is like great, but she's you know totally like wild spirit and I'm like oh my gosh. I need to to work at this little more. So when we did when all of a sudden you're like It's growing and you're thinking. Oh, my gosh is great. People are just listening, and then all of a sudden when you're onto something, people and other brands and other companies go. They're onto something I. Think I'm going to try that, too. And then what you were doing so authentically is being duplicated right so. So what we have always done I think and even back in the scrapbooking and paper. Crafting days was just advice. My mom gave me is just really don't worry too much about what other people are doing. Find out what you uniquely do. What is it that your company or your brand do what do you? How do you stand out and for US There's a lot of people who have high end stationary and people. People that are saying a professional and I want it to look like this or I. Don't like this about your as well. This is who we are. We are colorful and fun and were affordable. We have a disc bound system where you can change things in and out, and those are some things honestly and with the brand that will turn people off when you really claim like who you are. Some people are going to say. Well, I. Don't know but I. don't like that well, but this is who we are when you can really find that those are the things that just kind of narrowed down, and you nail it down so much that these are the things that make us unique, and so for us. We embraced all of that. That is who we are fun and colorful, positive and an interchangeable, and all these things about the product and about our messaging. That's what we focused on, and I think even especially going forward when it becomes harder and you. Maybe at this point, we're going like you see a slowing in not just gaining followers as fast when you get up high. And there's more people in the space so for us it's how can we find? What, we, what is it that we offer? That's unique whether it's the message product. And, you kind of have those pillars of our being authentic. Is it something that's different or are we just white noise in the space? Should we be making a change? We be pivoting. Right now do. Is there something we need to be doing to be more aware of the surroundings of the economy of this of society so You're constantly looking for you have to just be aware. Of who you are where you're going and not being paying too much attention to. The competitors and the people aside. It's really hard though it's hard to do because you find yourself looking. They're doing so good over there. Maybe I should change and go that way so knowing who you are is a huge part of that success for us. And, I love how you really made an emphasis on. Being okay with not being a good fit for everyone, and you know we talk about this even on social media. How you know people always give us questions on. You know my Gosh I I lost if I don't post for three days. I'll lose one hundred followers well if those people want on, follow you because you haven't posted three days. They're not your people. Like they were never people anyway, so I love that you have you have a focus and you understand your branch so well. The you know who you're catering to, and also you mentioned pivoting when you need to because. You know I think that people get so focused on the end goal, and if it's not if it doesn't turn out exactly how they anticipated that it would be, they give up right, so I think that's I. Love that so much and it kind of brings me to my next question on. The hardships entrepreneurship because I think that when people look from the outside, they see this beautiful brand that you've built a successful mom who's who's doing it all, but it takes so much work and behind the scenes that the people don't see. Can you walk us through some of those hardships that you faced in how you've kind of gotten through them? Oh yeah and I think. I'm so glad you brought that up because you especially on social media, people will see their, so they'll say. Where were you because I'm pretty active on my own, and then also I with the happy planner, but it like where were you? We Miss John there. I'm like you guys like if I would have shown. What I was doing for the past seven days, it was get up in the morning. Go to work. Stay there till seven o'clock have like meetings altay come home barely figure how I'm going to get the door dash before I wanna fall asleep, and then you know over it over and over again and I'm like it's not glamorous. It's hard There's a lot that goes into it. You know and you have to love it if you are somebody who has your own business or your own brand? You have to love it because it is not I mean I would say. Ninety, eight percent of it's not glamorous, but it's rewarding. You know it's something that you love, but you're GONNA have failures. You can't be afraid to work hard and fail. Because, you're GONNA. Do both of those all the time? And you know and learning from your from your failures for me. It's like you know we've had products that the ones that you've mentioned like happy planner that quadrupled the size of our business in the matter of two years But in the in between, and we had already had like a pretty successful company, and we were like well, but what you don't see, are all of the things where you come out with the product and you're like that's a dog. You Know Kate next. What do we? Can we learn from that? You know that's what you can't. You can't shy away from it, but nobody wants to see that nobody, but those are the lessons. Are you know what you're seeing? When when you see the happy planner is our success of you know Gosh over twenty we did that. It was fifteen years. I think into the our business before we hit that like Grand Slam, we'd had several. You know that was. This product was a triple. This one was a strikeout. This one was a base hit. And then you know, we never know we not. Even we're not even. Promise that we were going to have that big of a success that we just kept going and every time we did we learned something like Oh we didn't do. The packaging wasn't right or you know. Maybe we rent to too early into that trend, or maybe we didn't research it enough or maybe we learned something every time but I mean we've had. We've had product failures. We've had really difficult times in the economy I've been around here through September eleventh through the two thousand eight crash where the business was doing great, and then all of a sudden we've had were having to like have layoffs and figure out how to make the hard decisions. To keep your business healthy and around and surviving, and that's really hard. I mean that's something that right now we're going through. You know we have. Luckily we've got a great basin. We've had a very successful business, but this is a gut punch, and for a healthy business like ours. This has been really difficult and I can only imagine if you're struggling before this, but you just have to figure out you. It's almost like a business as almost like being a parent. You've got to make those tough decisions. Decisions you know that not everyone's going to understand. That's going to be hard. It's going to keep you up at night. and those those you don't see those on social media. No one's sharing like we had to really hard today and or have been meetings all day, and if they are, they're showing you the picture of themselves looking really cute, and you know here I am with my thing and it's. It's just not always like that victims hardly ever like that, so I think it's sometimes i. I've shared lots more real version especially on my own personal social media on instagram. Especially because I, think we do a disservice to. Everybody but to women's in general specifically where it's like if you're trying to be an inspiration and trying to share with other women, this is what if I can, we can all be here for each other. You, know in business, and this is how we can succeed. We are doing a disservice if we are just showing what our lives really never looked like And how how then do those? How'd you push through? How do you push through at the worst times for people that are listening that are entrepreneurs have launched their business or not seeing success right away. Like what have you learned to cut has kept you going. I think i. mean this sounds like something that my husband would go. No, if you can't measure it, you can't manage it because he's. My husband was our CFO CEO and. But for me, I, it's so much into an instinct. And then pushed through because I believe in my instinct very strongly. There's a thing like I feel like you know for us. We were very fortunate that the business that we started stayed healthy, and was viable forever, however I. Kind of look at our product launches in our product releases and different product types almost like many businesses, because there comes a time when you know this isn't working, you know there comes a time when you're like. We just need to let this keep going. We need to work at market. We need and you just you kind of. If you're really being honest with yourself, you know when it's like am I pushing too hard for something. That's not really making. Any headway or do I just need to keep working harder and I feel like You know if we ask ourselves how we done everything. HAVE WE EXHAUSTED EVERY OPTION? That's what I think. We need to kind of listeners, though because I just feel like if you are sitting here like. With a struggling business, let's say whether it's from the economy or just like I'm just not going anywhere It's hard because some people will say just keep going. Just keep going all the time. I don't think you should do that all the time. Sometimes you want maybe need to move onto. Something different doesn't mean you're not going to be. In business or start your own company, or but maybe this, isn't it? Maybe it is? Maybe you're just sitting there going. You know what this is going to be tough times, but I believe in this business i. know we have and we're going to keep going, so you kind of have to listen to that. You know you're got to say. Where are you? Are you? You know? Do I need to keep pushing through this, or is there something else that I need to be? Doing are exploring. It's such a weird time to because with everything going on I. Mean People are obviously doing less news less really to plan but I think there's still an opportunity and it's great that the product isn't just a manner planning out your daily activities that can also be used for intentional set goal setting in just writing down thoughts that you have journaling so I love that it's it's I town that regard Have you guys thought of ways to during this tough time? Kind of still sell your product in different ways or maybe thinking about different product lunches. Were you know what kind of has been brewing in the last few weeks, so it's like a perfect example of. Of evolving and pivoting right so like. Yes, when you're when we're looking at people that are planning your days just filled. My days were just like I couldn't even have the whole damn thinking. How tiny can I right because there's so much going on, but you know one of the other things we have in our product, minus positively journaling and guided journals, and then when you you know for us, it would be so tone deaf to be talking. Talking about we know you're busy. Let's just talk about busy busy busy schedule Hustle. Let's go because this is not the time for that, so we had to look at. What do we have in? You know in our offering. And what do we have What do we think is important or is there something else we can offer so for us? you know slowing down journaling 'cause for me. It's all about putting the pen to paper. I Love I love my. Technology and I. On my computer as well, but there's something to me about writing stuff down whether it's my schedule and prioritizing key efficient or whether it's like you know just journaling what I'm grateful for writing that down I did a whole like wellness like year in two thousand eighteen, where every single day for the entire year I journal. Like what am I feeling I thought it was going to be like more. Of a fitness thinks I like. My cholesterol is high, and I needed to lose weight, and I was going to do all these things I'm going to travel the stuff and what it became was. Oh my gosh, I'm realizing that I'm tagging my emotions now like when I would write things down the journaling became the biggest part for me is what I was feeling like I was really I felt very marginalized that meeting today, and I came home, and I think like I was going into hibernation. You know and I was angry and I was, but I was identifying my feelings. Why was I instead of just going like writing down my food log? You know it's like it wasn't helpful for me. I. Know How to eat healthy. But to realize that when I feel angry, I don't know what to do with those feelings and to eat them you know, or and I'm like an eye stuff them and I. Try and do anything in Canton. and that was like a realization for me, so we're kind of leaning into that and saying hey, right now when you're stressed or you're afraid or whatever it is that you're going through. What can you lean into? And how can you get in touch with your feelings whether it's do journaling or if you really do maybe you're a mom who is trying to work fulltime at home and also. Also home school your kids to the distance learning the. Maybe you need to be really efficient, so you need to you know. What is it that you need and listening to that? Do you need to be productive? Do you need to be kind of moving a little more inward, and then just writing it down and really getting out of your head and onto paper, so you can help process it. Yeah I need to start journaling. That is something that. I know he's for the whole year. Did you notice that it had a huge impact on? It changed the way I thought it totally and I'm the same way because I'm like I'm so famous for starting a journal. And then it's really good for like a couple weeks, and then it's empty, and I keep it and all these like you know journals that have a little bit done in the beginning, and then like I wish I could combine them all. And are they now? It's like so I just said I have never made like a year long commitment to myself I. Will I mean I will do anything for my kids. My husband, my family, my, you know the team of me me and my big ideas, but for me. It'd be like I'm always the first one to get shoved off the list and so I, said I need I was stressed because just like what you were saying. Our business was. Wildly successful that year, and the year before that but I was so stressed out. Because when you quadruple the size of your company, and you're trying to do the same things that you did before scaling it and learning how to do that so quickly is really stressful for a for a creative person who likes to do things like. As I'm inspired. And so. So dealing with that was huge, so all of these things that I saw which were gaining weight having high cholesterol, not sleeping at night, having hiring Zaidi I was thinking, it was because I'm out of shape or this and I didn't really realize accepted the journaling. which that's not what I started to do. That it was more than just that and so this journaling process just gave me. Such clarity and insight into my own feelings that I had no idea and I don't think if I if I just tried to do that at the very beginning for just a little bit I, don't think I would have. Gotten as deep because like doing it every single year someday the destroy today sucked. He knows the worst day ever and I didn't know how to see it through, but then as I got used to journaling just as an exercise every day. I learned to go. You know to just kind of. I guess like look a little deeper. Really. Shed light on stuff that I had no idea I was looking for. I feel like now. I'M GONNA. Go buy one of your journals because I'm so inspired by that by just what you said and I think that I'm someone that just keeps everything in my head and I talked to myself all day every day just. All the things that have to do all the things that should you know that are behind me? That I should have done yesterday it's that's great. I love that with you. You know you don't realize that when you're not like kind of emptying out. It's like for me I was not able to. I was not able to like think of I was kind of creatively blocked, and then I was like even motion. Lee blocked and they just didn't realize because I'm the same. I am an over thinker. I like I process everything and I just I kinda hold onto it and I get very wrapped up in my own head, and so it was just almost like an emptying of it and helps me sleep. Helped me do all that stuff, so my guys. I think you'll love it. Okay. I'm sold. journaling. Borsch, now let's talk a little bit about living intentionally, which is very much related to what we're talking about now, bite. What does it mean for you to live intentionally? And how can people cultivate a more meaningful life? Because obviously you found your passion, you work really hard at you. Know keeping your mind rate, and it seems like you're a very self, reflective person, but how how have you gotten there? I think. I've always been somebody who really likes. Growing looking inside I ask a Lotta questions of myself and. Other people like I. Try and tell my husband like I'm not really trying to psychoanalyze you. Even I would love to just get into everybody's head, but I think that there's so much we can learn. And one of the things that I have learned just by trying to grow as a person and being teachable. Has Been You. Know there's nobody in the world that is going to take charge of my life, my happiness, the things that I want that me. Matt what happens around me it doesn't you know we can all we can all be complaining about what's happening in the world with your job with your relationship, but when it really comes down to it, you're the one that's responsible for what it is. You want in your life and how happy you are. And so for me, it started with number one. I needed to. Learn how to love myself because I didn't love and accept yourself believe you're worthy of all those things, and then once you believe that those things started kind of coming into my life and a realize it's like you know. That was something that I had to really focus on. I had to work on with myself I am. We're a project, so if you go out there, and you really want a job, or you really want to start a business, or you want a relationship. You have to almost I think. Go for the life that you want with that same passion and I mean for me. It's just been about really starting to identify. What is it that you want? What is it that makes you happy? And how do you need to get that? I think that's why I'm a planner at heart, because living intentionally as really planning, you're trying to like you have to identify something first and then figure out how you're going to get it right, so it's like for me. Identifying. What makes me happy? What the name of our podcast plan? Happy Life at the Tagline for our company. Or for the for the happy planner, because really feel like you know if if for me, I need to identify what it is, that makes me happy right, and so I'm not somebody who is an Adrenalin Junkie I'm not someone who needs a lot of activity in my life, I need I need serenity a need. Calm I need a place to be creative I want to go travel I want to be with my family so when I. Start to really identify Granular Li, like what it is, that makes me happy and what I want I can easily say you know okay well. Then I am intentionally going to make the choices that get me closer to those things that I want and. It's really a responsibility. You know it's really taking responsibility for For the actions that we take and you know and I think it's empowering I actually feel like instead of going like Oh. My Gosh I'm responsible for all of these things in my life and no one's going to do about me that makes me. I think it just gives it gives me the power back to say you know. Stuff can happen all around me. Crap can just be going on like everywhere and internally I can live intentionally with what makes me happy, which what? And I can be. Responsible for especially this stuff that's going on in my head. You know so setting intentions of you know whether it's daily whether it's setting an intention for a year or whenever you're feeling like you need a little more clarity into. What am I working for I think it's a really powerful thing to do and I know sometimes when things get more popularity. They gained that whole like people in Oh. Yeah, okay. Setting intentions are doing all this, and it sounds a little Wu, and all that and I'm like it, but it really really makes a difference in how we live our lives, and the decisions that we make yeah, and it's all it all goes back to taking accountability, right and totally nine I. always talk about this on the podcast where a lot of people struggle with that I. Think they kind of have this. Poor me, mentality or you know I could never accomplish that I'm not ex- enough. I'm not educated. Enough I'm not. You know fast enough smart enough pretty enough whatever it is, and I just do I. Hope that if pe- when people listen to this episode, they really if they take anything from it. I really hope that they listen to what you just said. Because it's so powerful, that's such a like. I can't I've had a lot of things. People will ask me like well. Of course, it's easy for you to be happy because where you are today, you know and I said, but but here's what you don't understand is that? The reason I'm happy is not because I have all the things that I have the reason I have all the things that I have is because a happy positive person who believes that I have. that. What happens in my life is a result of you know of the way that I go about it and what I believe I deserve and how and then I can have those things I'm happy. And I'm positive period. Doesn't necessarily. Happy happy I just mean like I'm going to be content and positive and optimistic in my life. No matter what is going on and I have lived through a lot of things I've had like I said I shared with you. Guys had some traumatic things in my childhood that have happened I was had a child eighteen I had a lot of money issues. I'm growing up. I was in an abusive relationship with physically and mentally, and there's a have been drug abuse them I mean lots of things that I've had to deal with and. I could very easily any of those instances been. Why did this happen to me? I could never start a business because I don't have a college education and they don't have any money, and they don't have this and you know. What will people think of me and you know a? Growing and believing that you can do something, no matter what like having that resilience and having that. Like I'm just going to figure it out like I said I. It pretty much anything now I'm probably going to be more of a of a jack-of-all-trades master of none but that's okay. That's who I am, and that's really has gotten me where I'm at, but yeah. I just I think if anything I totally agree with you. If I share anything, it would be that no matter what your circumstances are in life. I think optimism and. And believing that no matter what happens to you, you will get through this, and you make something of yourself, and you can get the things that you want in life If you know if you're working, you work hard. You have to be willing to work hard. You have to be teachable if to learn to be confident, but all those things are things you can control. And it doesn't really matter what your circumstances are. So that would be something I mean. Yes. I love the product. Yes, I love our brand. Yes, I love all these other things, but that's just something that I think everyone can take with them throughout their lives. Such great life advice, and it's so true I feel like there's been looking back and reflecting on my own experiences to and the hardships that you know everyone has different forms of adversity, but how you respond and react to that is I think all the difference and I think it was a murray furlough that said everything is figure out. That just. When you said that because it's true like if you have that drive and that hustle enough to do what it is that you WanNa, do you can figure that all out and I think Alex also reiterated several times. There's this concept of just start now. Figure everything else out along the way as you go. Otherwise, you're never gonNA start. You're never going to achieve those goals but in terms of goal, setting and just organizational tips. I mean I feel like the ideal buyer of the happy planner is a very organized individual, or maybe they're aspiring to be more organized. So what are some good organizational tips just in general that people can start practicing and then apply to the happy planner. And I am not a naturally organized person. At like what you see back there on this video that we're recording over is not what it normally looks like I'm a creative person so I'm very like. Just kind of scattered and I will follow an idea like if I have an idea, I'm like I'm down that rabbit hole and. There's a chaos and mastic usually follows so being organized and using happy planner and using organizational tools is actually been essential for me to be like a productive society member of society or running a business, so one of my favorite tools and I think we kind of alluded to this a little earlier was getting things out of your head in getting him down I use a master What I call him Master Action Item List, so it doesn't matter if like you are thinking of I've gotTa. GotTa do cupcakes the Kids School I've got empty. The dishwasher I have a huge project that I'm working on. That's do every little thing. Take space up in your head and It doesn't really you know you're not really. They all have the same weight, so you're thinking constantly of the Dishwasher, the cupcakes and all of these things and you don't have the space to really think about Give yourself like. Hey, now. I'm really focusing on the project because there's so much stuff spinning in your head. And, so I think David Allen I think is his name he said you're. You're headed for having ideas, not storing them so like for me. It's like Oh, my gosh, that is so perfect so I take and had this one massive list actually I have to, but it's ones home in one's work, but usually for most people one will do and. If everything that comes out of my head is something that I have to do if it's an action item. I put it on my list and then I work from that list. Would plan my weeks when I plan my days, so I look at Monday and I think okay. I've got five meetings not lot. Stuff's going to be coming off that to do list, but on Tuesday I have one meeting in the morning and I had the whole day that I. have so I'll go off of my master list and then start working from there. I'M NOT GONNA forget my tasks that way. It's not going to be like oh shoot cupcake sting it. You have your your things that have due dates and everything so when I'm working from it I don't have fifteen sticky notes everywhere and a piece of paper that I wrote over there. That I got lost cause. I left it in my car and you're constantly then figuring out. How do I remember where it was that thing so keeping everything kind of in one place has been a big tip for me. the second organizational tip that I use I plan every Sunday I plan my week out every Sunday so or whatever the day before the start of week.' In for me. Mondays the start, so I sit down I. Take a look at what are all of the to the must do's appointments. The the deadlines that have to happen that week and get all those things in there and I. I plan everything out from date night with my husband every week. we're putting that in their first wins the time that I need one of my GonNa. Go exercise. When am I going to those put in appointments, and then I start to fill in again with things from that master to do. If I don't do that, then you know, there's things that come up and they're just time. Thief's and they come in to take in all of a sudden. You look and you've spent. Monday and you're thinking I've done nothing you know. It could be a week and you're going like shoot. There's nothing off my list. conversely you can take a look at that, and if you've been really productive, there've been times. I had no idea I could get that much done. So those are two tips for me to stay on and just to contend me. Being organized means being productive, because if I'm not productive, my stuff's all over the place. I get very easily overwhelmed, and that is not a good place for me to be. I was GONNA ask as well with with your master. Master list you add everything from like emptying the dishwasher doing laundry like every task so usually I have like if those are ongoing I will have just started doing this, which helped a lot, but all I kind of assign like if something that occurs every week for me I have a list. That's basically recurring tasks, so if you're if it's a cleaning thing, it's like an you know you've got changes sheets. You know the bathrooms or whatever I've got empty Roomba. because. Just, all those little things that are like take the trash out. Those are of things that I put off to the side which are more recurring tasks. And then when I sit down. Unday, I think you know empty room by the today's the in the evenings and do my meal planning here and those things happen all the time. The the Master List for me is you know the things that are their projects or their like like for me for my work one. It's like every time like I need to talk to him about this Call up this person and make sure I return this thing and check out on. All of the let's marketing meetings scheduled out. Make sure to reach out and so then I can cross them off. On Cross them off. And then when they're done, they're done, and of course you know once it gets to about halfway marked off at create a new list because it's prettier. And I like doing that, but yeah, the reoccurred things I keep separately. Of It, so we're GONNA. Get this all in. Your home about really what you're saying is it comes down to time management skills right, and yes, you know like you said there are some days ago by and I'm like. How did I just spent two hours scrolling through instagram? Checking emails bearing bearing myself in emails that really don't I don't need to get back to these people right away and you self reflect and go like that I see I'm busy, but to hours of that time was wasted. Time management is huge, and that was another thing that I uncovered in my memorabilia box that said think I was in like fourth grade and the teacher says like Stephanie needs to learn time management. Because it is true, because I do the same thing and I feel like there's so many times when people say I just don't have enough time and I'm thinking i. just spent four hours binge-watching. Whatever I. We. Do have the time and that's okay. If you're going, you know what I'm going to. It's going to be a binge party like I am going to be watching and It's fine but I think we need to be aware like you don't WanNa miss out on the things that you either want to be doing our need to be doing because you're not managing your time well and like I said it's a constant struggle. This is going to be something that I'm GonNa be. Be doing for my whole life. Because you know because I'm just not naturally inclined to be that way even, but it's a habit you know, and it's easier for me now, but managing your time well and scheduling it out is is a habit that we form you know, and it's just like it just becomes easier and then yeah, you find him. There's nothing to me like when I look at a list I'm like. Oh, my gosh look! How productive I was this week! That is such a good feeling when you even when you finish the day, and you're like man I was on point today like I knocked this off the list and I. Did this and you just feel good? There's just this feeling it brings. There's something about they say like an actual like I don't know what gets release, dopamine, or whatever that when you cross things off your list. That, yes, go. It is what? What are some other resources that you? You've enjoyed yourself or that? You would recommend to listeners in terms of time, management or building, good habits, organizational tools and practices. I think that like to meet. Okay decluttering. Making sure that you like you don't have because again. The more clutter at the worst and I know they say you know a messy desk or whatever they say, but the MESSI dozen. Beans or whatever and it is, but it's probably one who's just driving themselves crazy 'cause they can't find anything so developing somewhat of. Of A protocol for how you're GONNA. Plan your weeks and then also. One of the things I don't know if it's not really a resource, but it's something that I learned that. I kind of tend to first thing in the morning. I want to like answer all like you're saying I. Want to answer all my emails, and then of course I go down. Somebody's asking you know unsubscribe to all these things now and then I started subscribing, and then I go down, and so somebody told me to block off your days and at the beginning. Do the most important thing for you that you need to. To get done in the morning or whenever it is that you work I work best in the morning and freshest van, and then about three o'clock, I'm looking for anything else. I'm looking for something to snack on or any distraction and it, but some people are not also if you're like going, this is when I do my best work. Then make sure you can identify those times because you're gonNA. Find that you have. You're going to get more done. You'RE GONNA feel more efficient more. More productive and I think that's going to help I. Definitely, figure think that if you can figure out how technology and productivity work for you. I am kind of a hybrid between outlook and all of the technology that we can't. We have that really does keep us I've got when I have meetings. All my stuff is stored. I, don't WanNa. Right down the zoom. Call Identification Number and the password, and all these things you know, that's all stored in my outlook and I have a really good relationship between paper planning and my tech, you know. And then but I have a process every time I have like a nice system. I think I think that works I've been I've used a lot of productivity tools into honest with you. Nothing's really kept me more productive than just keeping it simple and planning things out and getting stuff done I mean it. It starts off great, but then it's just something else for me to. Keep track of so having something just right in my face whether it's my outlook, calendar or or my paper planner I just like I, said I've tried I've tried them all I've tried. And I know they were really well for some people, but for me it's just all about keeping it really simple and just getting stuff done. Yeah, and you know what I love the realness because we get questions, sometimes of like. How do you have a business and you work fulltime in your mind like? How do you do all the things? And I always kind of self reflect in its and I always think you know. You make time for what's important to you. That's the bottom line. We all have twenty four hours a day. I think that that hustle mentality isn't always helpful and isn't always positive, but at the same time if you have something that you want to accomplish. You just have to do it. You have to figure it out and do it. That's the bottom line. So Yeah? I love what you said on that. You know what I'd like to ask you Stephanie. If there's some sort of book or podcast or resource that you'd recommend for our followers, I don't know if you have any in mind that something that is is really impacted you in some way. Yes, so two different two different things so a book that basically just changed my life completely were was the gifts of imperfection by Bernard Brown. And it was one of those things where I just realized I don't have to be perfect I'm worthy of just the way I am, and that just really kind of just her whole. I love her so much that book. When I started to believe those things about myself, things change. They think changed in my life. They changed in my business That's why I think that no matter what you're looking at doing that. Inner work is I. Don't don't try and like. Get the promotion or getting the relationship, because you think that's GonNa make you more successful or happier, or whatever, because if you're not okay with that first step I it's all going to be empty. You know you're going to get the promotion, but it's not gonNA. Feel as great as you thought it was. Because you're. There's there's that whole in there that you're trying to fill so. That personally was amazing for me and then I love how I built this by Cairo's and. The podcast and for business. That's something that I listened to and I just. If, you're ever wanting to start a business and you think well I don't fit the typical either entrepreneur or business owner, or whatever I don't fit that mold listen to those stories there from every walk of life and every kind of story. It's so empowering to listen to them, but it's also really interesting to see how some of those people dealt with you know the setbacks, and how they how they innovated, and how they funded their businesses, and it's really interesting, and so, and they've covered just about like every aspect of business so I love those, too. Such third-rate episode actually heard how I built. This I've never listened to it, but I've heard it is great good, so that'll be one that'll that'll be added to my podcast list. podcasts our life right now in quarantine. Basically do anything and just have headphones on and listen to podcasts. For sure so good. Well this has been great. We are so happy that we have had the chance to chat with you and an answer all of our questions. Where can people find you on on social media? And where can they purchase happy planner? So they can find a me personally and INSTAGRAM's. Where is my John? That's what I love the most. People over it Instagram, so you can find me at Stephanie Score, Fleming. And then you can find the happy planner, which on Instagram, as the underscore happy, underscore planner or the happy planet Dot Com. I also have a podcast called planet. Happy Life that host with my daughter, sharing tips about how you can choose to be happier and planned to be happier and. And we love that, so that is planned a happy life. You can find that. At Planet Happy Life Dot Com so and then the happy planner you can buy at craft stores all over Michael's Joanne. Hobby Lobby Walmart and that'd be planner DOT COM, so we're all over. Love it. It's awesome. That is so great. We will link everything in the show notes, and it has been such a pleasure Stephanie you offer so much wisdom. As it relates to not only business but life so thank you for sitting down with us today. Thank you appreciate it. It's been fun talking to you.
Lawyers for Huawei CFO say she’s Trump bargaining chip
"Involving child in walk away this time in Canada, lawyers for a senior executive of Chinese Tech giant Wa Way, says her extradition hearing should be dropped because comments by President Trump Reduce her to a pawn in a political economic contest. Ming Wan Shiu is the daughter of why always founder and Canada arrested her at Vancouver's airport in late 2018. The US wants air extradited to face fraud charges. Her arrest infuriated Beijing, which Caesar cases of political move designed to prevent China's rise.
Washington, D.C. mayor warns of negative outcomes to slashing police budget
"Cuts to the city's Police department budget could backfire. Protesters have been calling on the D C council to defund police. Muriel Bowser wrote to the council chair yesterday, saying If they approved flashing $6 million from the police budget, it would mean far fewer officers, which would trigger overtime cause that I'm not sure have been properly accounted for. She wouldn't say whether she recommends the CFO not certify the budget, but says if the cuts happen, income J where your march when our overtime numbers are through the roof, I don't want to hear anything from anybody because I warned them other Curtis on W M A. N W, a male doctor. Mom in one of the area's most
Capital Allocation with Blair Silverberg and Chris Olivares
"Blair and Chris Welcome to the show. Thank, you good to be here. We're talking about capital allocation today and I'd like you to start off by describing the problems that you see with modern capital allocation for technology companies. I'm happy happy to start there. So I think it might be helpful to give. The listeners, a little bit of our backgrounds so I was a venture capitalist at draper. Fisher Jurvetson for five years I worked very closely with Steve. Jurvetson and we were financing are very MD intensive. Technology projects that became businesses things like satellite companies companies that were making chips to challenge the GP you new applications of machine learning algorithm so on and so forth and I think the most important thing to recognize is that the vast majority of technology funding does not actually go to those kinds of companies. The venture space is a two hundred fifty billion dollars per year investment space. The vast majority of the capital goes to parts of businesses that are pretty predictable like raising money in in investing that in sales, marketing and inventory or building technologies that have a fairly low technical risk profile, so the vast majority of tech companies find themselves raising money. From a industry that was designed to finance crazy high technology risk projects at a time where that industry because technology so pervasive you know really do the great work of of many entrepreneurs over the past twenty to thirty years, technology is now mainstream, but the financing structure to finance businesses not has not really changed much in that period of time. Yeah, and then I guess I'll talk a little bit. My my background is I came from consumer education sort of background, so direct to consumer, thinking about how you use tools and make tools that ingrained into the lives of teachers, parents students I was down in the junior class dojo before starting capital with Blair. We were working on the Earth thesis He. He was telling me a lot about this. The the date out. There exists to make more data driven in data rich decisions. How do we go software to make that easy to access in self service and sort of servicing the signal from the noise, and we kicked around the idea and I thought that they were just a tremendous opportunity to bring. What Silicon Valley really pioneered which is I think making software that is easy to use in agreeing to your live into kind of old industry fund raising capital Haitian. The kinds of capital allocation that exist there's. And debt, financing and different flavors of these. Of these things say more about the different classes of fundraising in how they are typically appropriated two different kinds of businesses. So. You have the main the main groups you know. Absolutely correct, so there's. Equity means you sell part of your business forever to a group of people and as Business Rosen succeeds. They'll get a share in that. Success and ultimately income forever. Debt means you temporarily borrow money from somebody you pay them money, and then at some point in time that money's paid back and you all future income for your business, so equities permanent, not permanent. If you think about how companies are finance like. Let's take the P five hundred. About thirty percents of the capital that S&P five hundred companies use to run. Businesses comes from debt. In the venture world that's remarkably just two percent. And the thing that's crazy is this is two percent with early stage seed companies, also two percent with public venture, backed companies in places like the best cloud index, which is like a one trillion dollar index of publicly traded technology companies started their life, and in with injure backing many of them SAS companies, these companies, also just two percent finance with debt, but nonetheless within these these classes, the reason it's obviously economically much better for a business and pretty much every case to finance itself with debt because it's not. Not It's not permanent, and it can be paid back. It's much much cheaper to use debt. That's why you buy a house with a mortgage show. You know you don't sell twenty percent of your future income forever to your bank help you buy a house, but the reason that people use equity comes back to the risk profile so just like. If you lose your job and you can't pay off your mortgage. The bank owns your home. Same exact thing happens with debt in so restorick Louis, if there's very low. Certainty around the outcome in typically early stage investment you're you're doing a lot of brand new are indeed you have no idea if it's GonNa work you cope. You know over time that you'll be successful, but there's really quite a bit of uncertainty equities a great tool because you're. You'RE NOT GONNA lose a business, you know everybody can basically react to a failed. Are Indeed project. Decide what to do next had saints. Equity is kind of the continent tool for high technical risk, high uncertainty investments, and then debt is basically the tool for everything else, and it can be used as most companies do for. Ninety percent of The places that businesses are investing so if you're spending money on sales and marketing, and you know what you're doing and you've been running campaigns before. That were successful, very. Little reason you should use equity for that if you're buying inventory if you are a big business that's. Reach a level of success that on. Means you have a bunch of diversified cashless. Coming in businesses might take out dead on business kind of overall, so it's less important what specifically you're using the money for, but it's important to recognize that most companies are financed roughly fifty fifty equity versus dead, just just intra back companies that. That are kind of uniquely Equity Finance. Scaling a sequel cluster has historically been a difficult task cockroach. DB Makes Scaling your relational database much easier. COCKROACH! DVD's a distributed sequel database that makes it simple to build resilient scalable applications quickly. COCKROACH DB is post grass compatible giving the same familiar sequel interface that database developers have used for years. But unlike databases scaling with Cockroach DB's handled within the database itself, so you don't need to manage shards from your client application. And because the data is distributed, you won't lose data if a machine or data center goes down. cockroach D is resilient and adaptable to any environment. You can hosted on Prem. You can run in a hybrid cloud, and you can even deploy across multiple clouds. Some of the world's largest banks and massive online retailers and gaming platforms and developers from companies of all sizes, trust cockroach DB with their most critical data. Sign up for a free thirty day trial and get a free t shirt at cockroach labs dot com slash save daily thanks to coach labs for being a sponsor and nice work with cockroach DB. The capital that is being steered towards a recipient. It's often originating in a large source, a sovereign wealth fund or family office in it's being routed through something like capital allocators cater like a venture capital firm for example or a bank. How does this capital get allocated to these smaller sources? What is the supply chain of capital in the traditional sense? You know it's kind of funny to think about capital and things like the stock market in the form of a supply supply chain, but this is exactly how we think about it so at the end of the day. Capital originate. In somebody savings, basically society savings right you. You have a retirement account or your population like you know in in Singapore and Norway with a lot of capital, it sort of accumulated from. From the population and these sovereign wealth funds, or you're an endowment that's you know managing donations of accumulated over many many years, and ultimately you're trying to invest capital to earn a return and pay for something pay for your retirement pay for the university's operation so on so forth so that's Capitol starts, and it basically flows through the economy in theory. To all of the economic projects that are most profitable, inefficient for society, and so, if you step back, and you think about like how how is it that the American dream or the Chinese Miracle Happen? You know in in both of those cases different points of the last hundred years. Why is it that society basically stagnated? You know the world was a pretty scary. Scary place to live in up until about seventeen fifty, the industrial revolution started. Why is it that you know basically for all of human history? People fought each other for food and died at the age of thirty or forty, and over the last two hundred fifty years that it's totally changed. It's because we have an economic system that converts capital from its original owners. Diverts it to the most productive projects. which if they're successful, replace some old more expensive way of doing something with newer better way and so I think when when I described that like you know I, think most people can step back and say yeah, okay I. kind of see how capital flows through the system, it goes automatically to someone making an investment decision like a venture capital firm ultimately gets into the hands of the company company decides to invest in creating some great product that people love. Let's. Let's say like Amazon and then everybody switches from you know buying goods at some store that may or may not be out of you know may or may not being stock to the world's best selection of anything you'd never wanted. The most efficient price that's society gets wealthier basically through these these kind of steps in these transformations, but it's asking if you step back and think about it like nobody actually thinks it's processes as efficient as it could be like. We asked people all the time. People were interviewing journalists companies. We work with sewn. So how efficient do you think world's capital allocation is? I've never met a person that says it's pretty good. You know we're like ninety percent of the way there. In fact, most people think it's pretty inefficient. They think of companies like you know we work, and some of the more famous cases lately of of Silicon. Valley back businesses that that totally. underwhelmed disappointed. Their initial expectations and I think most people admit that the efficiency of capital allocation is either broken or nowhere close to achieving its potential, and so we basically we'll talk more about our technology and how we do we do. We basically think of this problem our problem to solve. There's an incredible amount of Apache inefficiency in how data that goes from a project or a company, ultimately funneling up to an investor flows, and so you know it's hard to place blame because there's so many people in the supply chain, but. But I think it super clear that if it's difficult to measure whether or not a project or a business is good at converting capital into value in wealth, and you know products that people want, it's nearly impossible for society to become really good and efficient at allocating its capital, so we're we're here basically to make the data gathering data transformation visualization communication of what's actually going on under the out of business as efficient as possible and you know from that, we thank some great things are going to happen to the economy. Goes a little bit deeper on the role that a bank typically plays in capital allocation. If you think about our bank works like let's take. Let's take a consumer bank that most people think about you gotTA checking account. Right, now you've got some money in that checking account. That account actually takes your money or dot and most people know this your dollars sitting in that account. You know just waiting around. You'd withdraw them. Your dollars are actually rolling up into the bank's treasury. There's somebody at the bank working with the regulators to say hey, how much of this money can we actually put into things like mortgages, commercial loans, all of the the uses of capital that society. Has In some some effort to. To, move the world forward and make the economy efficient, and so those deposits basically roll up into a big investment fund, and there's ratios that regulators set globally that say those dollars needed to be kept in reserve, versus how many are actually able to be invested, but with the portion that's able to be invested. It's there to fun. You know building a house to fund a business back -Tory to fund sales and marketing or inventory procurement for some other business, and so a bank was was basically the original investment fund, and a bank has unlike venture funds and other sources of. We typically think private capital. The bank has tricky. Problem were any moment all of the depositors holding the checking accounts could show up and say hey. I want my money back and so that's why banks have to deal with reserving capital predicting the amount of withdraw and classically everybody wants her money at once at the worst possible time, and so banks have to deal with quite a bit of volatility now if you take an investment fund on the other hand. Totally totally different structure, so your typical venture fund will have money available to it for a period of ten years from you know typically these larger pools of capital. We talked we talked about so very rarely. Individuals are investing retirement savings in venture funds, typically sovereign wealth funds down that's. Basically pools of that individuals capable. Win One of these funds makes a commitment to a venture fund. It'll say you've got the capital for ten years. You've gotta pay back. You know as investments exit, but other than that will check in ten years from now. We hope that we have more than we gave you the star with and there there's no liquidity problem because the fun has effectively carte blanche to keep the money invested until some set of businesses grow and succeed and go public and make distributions so one thing that's fascinating. The Tappan in the last twenty five years is private capital capital in the format of these kinds of funds. Have just grown tremendously and so today. There's a little over five trillion dollars. Of private capital being allocated in this way to think like buyout funds venture funds so on and so forth. Funds don't have the liquidity problems of banks. They can make much longer term for looking investments. This is created tremendous potential to make the economy more more efficient by taking out the time spectrum. You know this is why venture investors can do things like finance spacex or Tesla. Really. Build fundamental technologies in the way that a bank never could so this is an amazing thing it. However leads to a very long. You DAK cycle, so the incentive goes down when you take out the time line over which investment needs to pay back. To carefully monitor and understand what's going on in the business day today, so it's pretty interesting thing about the different pools of capital. There's not not to. Make it sound too confusing, but I think everybody will admit that the financial markets are incredibly diverse complicated we track basically about fifteen different kinds of capital, and they're sort of pros and cons with each one, but you know a bank is one. A private fund is wanted insurance companies balancing as another. You've got things like ETF and public vehicles that hold capital so there's quite a bit of complexity and the the structure of the financial markets. All right well. That's maybe the supply side of Capitol on. All kinds of middlemen and all kinds of different arrangements, but ultimately there is also the demand side of Capitol, at least from the point of view of companies getting started which is. Startups or computer in later stage with the maybe they're not exactly considered startup anymore, but they're mature. These companies have models for how they are predicting. They're going to grow, but oftentimes these companies are very. Lumpy in terms of how their their revenues come in how closely their predictions can track reality. So how do technology companies even model their finances? Is there a way to model their finances? That actually has some meaningful trajectory. Sure so first. Companies you know need need a base think of all the places that they're spending our money and. We're pretty. We Do I. Think a pretty good job of organizing this and making it simple so when we look at companies and we can, we can talk more about how the the cabinet machine operates, but when we look at companies, we basically think they're only a handful of places of money. Get spent you spend money on. Short term projects that you hope proficient things, sales and marketing. Houston money on paying for your sources of financing like paying interest on debt, making distributions to your investors, and then you spend money on everything else and everything else can be designing software building products on, and so forth, and so if you break the demand for capital down into just those three buckets. And look at them that way. Some pretty interesting things happen. The first is for the short term investments that you hope productive. You can track pretty granular nearly whether or not they are, and we'll come back to that. For paying back your investors, you sort of know exactly how much you're paying your investors so a pretty easy thing to track, and then for the operating costs you know most people will help us. Apax, that you're paying to keep the lights on things like Renton the your accountants, the CEO salaries on and so forth these are these are table stakes expenditures. You need to stay in business and so. Amongst each of those three things, there's different things that you wanna do to optimize and I'm happy to go into more detail sort of go through each one. If you think that'd be useful. Yeah Bliss a little bit more about about how these companies should be a modeling, their revenues are that is meaningful to model their revenue so that you can potentially think of them as targets for for capital allocation so. If we think about. Understanding what company might be a viable recipient of capital? How can you accurately predict the trajectory of that company, or or do they? Would they present a model? Would they develop a model good through a little more detail? How a company would serve justify? It's need for capital. So typically what what most companies do and this is not terribly useful or accurate, but I'll tell you what most people do I mean by the way like how central the entire economy predicts, predicts demand for capital works like this. Companies take. Their income statement on their. Balance Sheet historically. And they they basically have this excel file got a bunch of you know, rose and have different things like my revenue, my you revenue that sort of linked or my expenses that are linked revenue Mukasey could sold so on and so forth, and they grow each of those rose by some number that they hope to hit so if you want your revenue to double next year, you'll say my revenue one hundred dollars today I wanted to be two hundred. Hundred dollars twelve months from now I'm just GONNA draw a line between those two points and every month. There will be some number that's on that line, and that's why monthly revenue I want my expenses. You know everyone knows. Expenses are going to have to go up if my revenue goes up but I don't want them to go up as much as my revenue, so I'm going to draw a line. That's you know somewhere less than a doubling. and. You pull these lines together on one big excel file and there's your you know they're your corporate projections. In general, this is true for big companies small companies, but that's not actually how. Company revenue works because if you go back to the three categories, we talked about before, and you just focus on the one that talks about the short term investments. The. Way Company Revenue Actually Works is a company this month. Let's say they spend one hundred dollars on sales marketing. Well. They're hoping to get a return on that sales marketing, and so they're hoping that in the next you know six months. That's paid back. Twelve months that's paid back. You can actually track every time they spend money on sales and marketing. how quickly it gets paid back so it's that level of precision that can accurately predict revenue, and so what we do is we basically just get a list of every time? Money was spent on one of these short-term investments, so you sales and marketing for for an example, and then we get a list of all of the revenue that was ever earned. And we attribute between both of those lists causing effect. And we do that using a bunch of techniques that are pretty commonplace in your typical data, company or machine learning company. We use some math things like factor graphs. We use simple kind of correlations. We have You know a whole kind of financial framework to. Guess. What attribution should be because you learn a lot as you see different businesses and you see a bunch of different different patterns, which you can basically cluster on, but it is this linkage between spending on something like sales and marketing emceeing seeing revenue, go up or down, but makes or breaks a business, and you want to look at it and I is. Not a bundled. Entirety which is how financial projections are typically built? Okay, well! Let's talk a little bit more about what you actually do so if you're talking about early stage technology companies. Describe how you are modeling, those companies and how you are making decisions as to whether they should receive capital. When a company comes to capital they they come to our website. They sign up for this system that we built which which we've called the capital machine. And the first thing that they do is they connect their accounting system their payment processor typically, so think like a strike, and then sometimes they'll provide other things like a pitch deck or a data room, or whatever other information they have prepared. The system pulls down. All of the date in the accounting system and the the payment processor, and we look at other systems to these are the two key ones that all all dive into detail, and so, what ends up happening is from the accounting system. We get a list of all the times. Businesses spend money on these things like sales and marketing that we were talking about before. From the payment processor we get a list of all the revenue transactions in crucially we get it at. The level of each. Each customer payment, and so you know we scrub I all we really care about is having a customer ID, but once we have data at that level. We can start to do this linkage and say all right look. You know this business spent. A million dollars on sales and marketing and March of two thousand eighteen in April of twenty eighteen, and we saw revenue grow by twenty percent. That was a pretty substantial chain. You know what actually happened here. You can typically identify the subcategories of sales and marketing and start to do this link between these two, and this is really the you know the magic behind our our data science in our team pairing with our engineering team to figure out this problem and solve away that is, that's robust. Bud once we have these two data feeds, and the system goes through, and does all of these attribution. Populations were able to present that back to accompany a pretty clear picture of what's going on, and so we'll say things like hey. Your Business is pretty seasonal, and in the summer is when you're typically more more efficient at converting your sales and marketing dollars into growth so I, you want to finance growth in the summer. The second thing is only about eighty percent of your businesses financeable. There's twenty percent where you might not know it because you're not looking at this level of detail, you're busy building your business, which is exactly exactly what you should be doing, but Twenty percent of your businesses, not efficient. You're spending money on on your sales and marketing categories, product lines, and CETERA that just shouldn't exist and so if you get rid of those. If you double down on the part of Your Business, it is efficient. Then we predict your revenue will be act fifty percent higher, and we'll tell you exactly how much money you need to invest to raise money to to raise the revenue by fifty percent. We give you a bunch of charts that allow you to see how history and projections merged together and dig down. Inspect how we do that linkage to make sure you agree, but. This is what the capital machine does at its core. It Converts Company data into a fully audited completely transparent picture of. How business works where it sufficient where it's not efficient. And then that's where our technology stops, and where balanced she comes in, and so we then take this information, and we make balancing investments directly in companies, and so primarily at this point we lend money to technology companies that we see from their data are eligible for non dilutive funding. We make capital available to them directly. We basically allow them to access it through the capital machine. We use one system to communicate changes to the business. No keep both sides and form so on and so forth, but this is the kind of analytics layer that's essential to making these capital allocation decisions more efficient, and so I think you could imagine a day at least for us in the not too distant future when it's not just US using our balance sheet in this tool to make investments, but in fact, just like excel, every investor can benefit from a similar level of analytics and transparency, as can companies by getting more accurately priced faster access to capital less friction so on and so forth. Get Lab commit, is! Get labs inaugural community event. Get Lab is changing how people think about tools and engineering best practices and get lab commit in Brooklyn is a place for people to learn about the newest practices in devops, and how tools and processes come together to improve the software development life cycle. Get Lab commit is the official conference. Forget lab. It's coming to Brooklyn new. York September Seventeenth Twenty nineteen. If you can make it to Brooklyn, on September Seventeenth Mark Your calendar, forget lab, commit and go to software engineering daily dot, com slash commit. You can sign up with code commit s E. D.. That's COM MIT S. E. D.. And Save thirty percent on. Conference passes. If you're working in devops, and you can make it to New York. It's a great opportunity to take a day away from the office. Your company will probably pay for it, and you get thirty percent off if you sign up with code, commit S, e. There a great speakers from Delta. Airlines Goldman. Sachs northwestern, mutual, T, mobile and more. Check it out at software engineering daily Dot Com slash, commit and use code. Commit S. E. D.. Thank you to get lab for being sponsor. The inputs specifically if you think about a model for determining whether or not, a company should should be eligible to receive capital. I'd like to know how the the models are built. The the data science models that you're building are constructed from the point of view of the inputs. So how are you determining or how do you like company comes to you? How do you turn that company into some structured form of data that you could put into your models and determine whether it's worthy of capital. Yeah I mean it comes down to what what the data is your down so when we talk to a system like striper transaction records system, you know that that's the revenue of the company now where things get interesting when we connect to balance sheets in penalizing, it's of accompanying really onto understanding. Weighing. What exactly these numbers mean, and that sort of where we made our pipelines were built from the ground up to give us that granular. Of A company's cash family revolutions. Where's the money going where they allocating? And it's savable greenway or you once. What do you understand that data through that Lens? That let's build pretty sophisticated financial models Linda. And you know as soon as you have the picture of Company You can really do a lot of flexible analysis on the back leg distributed computation. Come stuff that you would never be able to excel and quite frankly a lot of these companies don't have the stacking internally or really the tools to understand for themselves, so you'd be surprised it you know when we surface this analysis back to the company by virtue of just being transparent on how we're making decision how it is perceived their business, the signals that were uncovering. These operators the CEO's the CFO's that are really focused on building company. Really surprising. They're really making these insights really transforming. How they think they should have capital. Should invest growing business. Are there any? Sources of Third Party data that you can gather to improve decision making. There are at a macro economic sense, and so it's actually quite useful to look at public company performance and say hey. SAS businesses in general. Most people notice, but facilities in general are seasonal in the fourth quarter. Budgets basically expire and people come in, and they buy a bunch of SAS. Software and so to take concepts like that basically shapes of curves, signals and apply them to private company. Financials is useful. Crucially though there is no private company. Data repository of any kind like it just doesn't exist, and you know notoriously even even with small businesses. It's actually quite quite difficult to get access to any sort of meaningful credit data, and so, what ends up happening is these aw. These businesses. Give you a picture of their business directly as an investor and you have to interpret it directly, and that's basically how this works totally unlike consumer credit, there's no credit bureau that people paying so most investors are analyzing the state and excel. Excel notoriously breaks when there's about a million cells worth of data, and so we've got this great visualization showing our data pipeline, and it's basically a bunch of boxes, and there's a little tiny. Tiny box in the bottom of corner that's excel, and there's a bunch of other boxes across the entire rest of the page that are nodes in our in our distributed computations, but accelerate very very limited, and so it makes it impossible to actually understand what's going on in business from the source data, and it's at the source that you see this variability in this linkage between profitable capital allocation decisions in unprofitable capital allocation decisions. Describing more detail, the workflow so a company comes to you and they're going to put their inputs into the. Would you call the capital machine? What does that workflow look like in a little bit more depth? Yes when they come to the website, they creighton count much like you would on. Twitter facebook account. When your details your email, you terrify your email, and then you on what's recalling like the capital portable on there? You have et CETERA. Tools to connect your sins record and these are typical offload. So you know people are very familiar with you. You know you say hey, let's connect by quickbooks you in your credentials and sort of be as secure way, and you click okay and the system checkmark by your quickbooks in the system start pulling that data out of regular cadence and. Depending on what system you're connecting you of the characteristics of that's not go systems of record, and how much data you have you know. The data's available anywhere from ten minutes to a couple of hours later and you know once we have Dr. System, we run that through our partake analysis pipeline in the users as a company. You get you get charged. In Tableau kind of call it, the insight Saban's these refused that we think would be helpful for you as an operator company understanding about Your Business in separately. We also get views of that data that are useful to our our internal investment team. Whoever is looking to capitalization systems? Are there certain business categories that are a better fit for modeling in better fit for the kind of. Predictable capital returns that you can, you can expect with the investments that you're making so like you ride sharing or Gig economy businesses or some businesses. What are the categories that are the best fit? Say Very few categories don't shit from the from the perspective of of linkages, but they're certainly models at their easier to think through and easier to understand, but our our system can underwrite today A. Lease on a commercial aircraft, a fleet of ships and Insurance Agency ask company the most important. Thing about our system is that the financial theory that underlies it is very general, just like p. e. rate is very general, and so that's kind of sounds crazy like. A lot of. A. Lot of people say what what businesses the best fit for your your system and you know it's kind of like asking what businesses the best for Warren Buffett like Warren. Buffett is a generalist. In any business, and he has a framework in his own head to figure out how to make ship comparable to American Express our assistant has a very similar framework. It just operates at the level of transactions instead of at the level of financial statements, but certainly within. That framework there's some examples that are just easier describes I think like you know thinking through the fishing of sales and marketing something. That's a lot more obvious than thinking through like the stability in refurbishment of commercial aircraft parts, which is a key question you know. Pricing pricing refurbished parts, which is a key question if your financing commercial aircraft and Our team, the ambassadors that use the capital machine internally which we primarily do internally do a little bit of partnering with without the groups to to use this as well. These people are all specialists in some particular area, but it's crucial to understand. They're looking at the exact same chance as all the other specialists and all the other areas, so it's like literally the the Fast Company and a commercial aircraft will have the same series of charts at investors. Are there two two draw their conclusion? Is the question for Chris. Can you describe the stack of technologies that you built in more detail? Yeah Yeah. Of course on the front, we are react type script, xjs, you know everything is on aws, and in the back, and we're. We're all python, and in really the reason for that is if you're doing any serious machine, learning or data science today can't really get away in python stack, so we're all python them back in. We have flasks. As a as our API late here and That's the that's a high level. And get a little bit more detail about how the data science layer works. Yeah, yeah, yeah, of course, so we put on the dea into basically a data lake the that goes down into Ardito pipeline in that's all air orchestrated on top of each called airflow, and we use a technology called desk for are distributed computation, and I think that this is a good choice. Choice for us at this moment you know I see us doing a lot of work on. You know using a spark in other distributed technologies in the future and his team and it turns out that when we pull this data down organizing the data was really important to us as we build a lot of attractions to make accessing that data, really easy for quantitative analysts. Important central to our whole technology is that we're able to do a lot of different financials experiment very quickly on top of this so the the implications of that really cascade down all the way into. You know what technologies where choosing how we structure our delayed. Even even how strokes are teams, so it really is brought up locations across all product. How is it when you're analyzing company that you have enough data that it warrants a spark cluster because I can imagine? The financial data around the company. How can there really be that much data to analyze how you do surprised in a lot of these transactions systems taking up the companies have been around a couple of years and their direct to consumer. These data sets can be can be pretty large. You know we're talking about in the millions and millions and millions of transactions that were pulling down and storing. Storing and that just on a per company basis. You know that's not even talking about if we wanted to. Benchmarks Cross companies, and also if we want to do scenario analysis, so you know one of the things we was part of a pipeline is take this data, and through like nine ninety nine hundred thousand simulations to understand the sensitivity of different variables on the performance of Your Business and If, you're starting out with starting that already large. Sort of a multiplying effect. On how much data the system is the old process? is you go through those different stages? And, can you tell me a little more detail? What would a typical spark job? Look like for a company that you're assessing. Yes, so first episode is ribbon. Our our financial didn't ingestion parts, so we download something on the order of you know forty fifty bytes of Tim's action data for for a company. We have to do all the work to interpret and understand what that means in reorganized that data in a way that are downstream analysis and primitives can. Make sense of and use for useful analysis so really the first step at this point job is is transformed the datum some it's useful, and then there's all the work on what are the clusters in order to machines and analysis in the computational. Resources needed to run simulations. You know not not just say local computer locally owned of fall over the only about thirty to sixty four gigabytes of Ram what league, so that's where workflow comes in creating easier faces into data, clusters and being. Should you know when you run a job? You know when it fails. You know it's done. You know when the team can't okay. This part of analysis done I had intermediate date asset to do more analysis on now get back to work is a lot of the time we spend developing internal tools to make. One other thing that'll mentioned that I think's important is. A lot of the underlying technology in our data pipeline it's no different than like what a tableau or you need. Traditional BI business would have access to, but what's fascinating when you have a vertically specific domain so financial data in our case you can make a lot of interpretations about the date of the let you do much more intelligent things, and so for example we. Don't have to make your own charts as a user of the capital machine. We make all the charts for you can of course. As a business we work with. Give us ideas for charts. You can mock up your own. We we basically have an interface for for business. The I team's to to write some code if they if they want to bought when you have clients who are thinking about financial risk, financial attribution across all of the companies that we see distilling that down into a series of indicators that are detailed, but generalize -able, and then publishing that back to all of the companies that use the capital machine to run their own capital, allocation, decisions and access, external fundraising and capital. Some pretty amazing things happen in so it's only with a vertical view. You actually having these we, we call our data scientists Kwan's, but but actually having these people who you know typically are graduate level economists, thinking for the first time about using transaction level data in their analysis, which is notoriously not not available to to normal economists that you get the kinds of insights and analysis the actionable for businesses, and then in terms of the data pipeline that then means we actually store a bunch of intermediate data that's opinionated in that way, and that makes it much faster to access much easier to benchmark much more useful across a network of companies, versus just that isolated excel model that. Explains only one business. One thing I'd like to ask you about. Capital intensity so there are kinds of businesses that are capital intensive for example where you have to pay upfront for a lot of ridesharing rides, and you know as Uber or lift. His has known in much detail. You allocate all this capital two things to subsidize rise because you try to win a market, there's all kinds of other capital intensive businesses. How does capital intensity change? What makes sense with regard to the equity financing the debt financing that you are shepherding for these companies? That is a great question and be because of where you focus in your audience. You totally get the most financiers don't so. The first point exactly like you said. Capital intensity means a business consumes a lot of capital. It doesn't mean a business has a physical factory or plant or railcars, so it is absolutely true exactly like you said that there are a lot of tech businesses that are incredibly capital intensive. If you are capital intensive business that means UNI especially if you're growing, you need to raise a lot of external capital, and so it is even more important that your capital or a big portion of your capital base is not dilutive. That's that's just essential. Table stakes because what you see with these businesses, the ride sharing companies are great. Example is by the time one of these things actually goes public the early owners in the business on a very very very miniscule. KEESA that business, still if you contrast that to company like Viva Systems which I think is one of the most capital capitol efficient businesses in venture history, I think that this race something like twelve or fifteen million dollars total before it went public in a at a multi billion dollar market cap. So capital intensity. Is a synonym for dilution your own way less. Than you think when you exit entities even more important that you figure out a way to raise capital non ludicrously upfront. Some broader questions zooming out in in getting your perspective. Do a thesis for what is going on in the economy right now where you look at. The fact that We have. Obvious pressures to. Reducing the size of the economy through the lack of tourism, the lack of social gatherings while the stock market climbs higher and higher, and it appears that the technology side of things is almost unaffected by Corona virus is there. Is there a thesis that you've arrived at or or their set of theses that through conversations with other people, you've found most compelling. Sure the most important thing to realize about the stock market is that it discounts all cash flows from all businesses in the stock market to infinity, and so the value, the stock market about eighty percent of the value. The stock market is. Pretty far into the future like more than three years from now, and so if you believe that the current economic crisis and this is why there's always a. At least in the Western, world, last two hundred fifty years after an economic crisis. If you believe the crisis will eventually revert, and there will be a recovery, then it only makes sense discount stock market assets by anywhere between ten and twenty five percent. If you believe businesses fundamentally going to go out of business because of this crisis, that's a different story, but that explains why something as terrible as Kobe nineteen and a pandemic. Only discount the stock market by by roughly thirty thirty five percent in a in March, but that's not what's actually going on today as you mentioned and so stock market prices now have completely recovered. That is something that we think is a little bit of out of sync with reality but I. I mention you know we're not. We don't spend too much time about the stock market beyond that we just look at you. Know Private Company fundamentals. We try to understand what's actually going on in individual businesses across all businesses that are network to see what you know what we can understand, and you know what kind of conclusions we can draw, and so if you take that Lens and you actually look at what's happening to businesses due to Cova nineteen, it's fascinating. Some businesses like think the food delivery space have gotten a lot more efficient, so those businesses lot like ridesharing businesses back twelve months ago, there was sort of a bloodbath between bunch of companies competing in local markets to acquire customers all all fighting Google and facebook console, and so forth you subsidies drivers, etc.. That's essentially stopped. These businesses incredibly profitable, the cost acquire customers has fallen by more than half a lot of cases. The channels were slot less competitive, and so if you're running one of those businesses. Now is a great time to be aggressively expanding. Weird things like commercial construction businesses. They're actually a handful businesses that we've seen do things like install windows and doors and commercial buildings whose businesses have accelerated because all of these buildings are closed down. Construction project timelines have gotten pulled up. All of these orders are coming. Do in they're you know sort of rapidly doing it solutions? There's obviously a bunch of other businesses have been that have been hurt by by the pandemic, but our general thesis are we've studied. Pretty detailed way the Spanish flu in nineteen eighteen, you know. These things eventually go away. There will be a vaccine. Economy will get back to normal, and as long as we can stay focused on working through this as as a society and of maintain our our fabric of of kind of economic progress then. DESAGUADERO values today will eventually make sense just sort of a question of of win for the stock market, and then if you're if you're actually running business in thinking about your own performance in isolation, really being clear about is now the time to invest and grow my business now the time to be very careful with my expenses interest, get through this for the next year or however long it takes for there to be a vaccine. So the way to think about your company, if I understand correctly if I was to to put in a nutshell, is that. I think of you as a data science middleman between large capital allocators, and and start ups deserving of capital, so the the sovereign wealth funds the banks the I guess. Funds of funds. These kinds of sources are essentially looking to you for guidance on where to direct the capital, and you're on the on the other side, absorbing data and creating opportunities from these startups to source the good directions of that capital. Just wrap up. Would you put any more color around that description or or refining anyway. Yeah I mean I. think that at the core of what capital is is where the. Core Technology Ambler of sort of. The private market if you think about public markets today, you've clearing-houses like the New York Stock Exchange, and you have companies that provide analysis on top of that like Bloomberg, you know we see a tremendous opportunity to shift the paradigm where you know the place where all the financial transactions happen. is also the place that collects the data improvise information for those making these decisions and yeah, so I think capitals really at the center of making a transparent technologically enabled financial marketplace. Guys. Thank you so much for coming on the show and discussing capital, and I guess one last question is. Do you have any predictions for how capital allocation for startups will look differently in five ten years? Sure so! The first prediction. And this is happening now. I mean the the infrastructure is. In place both within. And others. Most startups fairly early in their life. Think is equity only way to do this and. So. That's a cultural shift. That's that's already happened. People are starting to ask that question. The second prediction is. Seed and series a funding will be entirely unchanged. After series. There'll be a bifurcation between businesses that. Are Really. Capital intensive gigantic rnd projects think like SPACEX. The series, B. C. d. e. enough are really about building and launching a rocket. Those businesses will by and large not. Turn outside of equity to finance themselves, but there's very few of those businesses. Pretty much every other business businesses that you see raising a series B. Serie C. Will like any normal business in the entire rest of the economy raise maybe half of that capital nine allegedly either in the form of debt. Royalty financing factoring all of the other instruments that normal companies use to finance themselves in the void delusion that will happen roughly three years her. Now that'll that'll kind of we'll see obvious obvious signs of that from very early very early base, and then the final the final thing is. Steve Case talks a lot about this. With the rise of the rest, he's got this great venture fund that invests explicitly outside the coast, so kind of the rest of America and we've seen that there's there's a pretty dramatic distinction between being a coastal business non-coastal business from capital access perspective, but there's no distinction from an actual performance perspective, and so we'll start to see some of the regional. Differences in bias sees around where capital flows, go away. And so I would maybe put that on a five year timeline like raising capital is actually much more predictable, much less biased, and that's great back to the beginning of our conversation. That's great for the economy I mean every project or business that can convert capital, two products and services that people love should get finance. No questions asked doesn't mean it doesn't matter what the color of your skin is. What background you have whether you went to college didn't go to. College doesn't matter. You have a business with data that can prove whether people love it
Dealing With Financial Stress in Your Business
"The first thing I want to talk about in today's topic is. Where does this financial stress come from? And it's actually quite simple. It comes from a lack of visibility. It comes from a lack of understanding the dollars and cents of Your Business. How much money is going? And how much money's coming now? I get it as an entrepreneur. Many of us were not really numbers people. People were creative people. We'd like to build things we look to see things. Come to life. We want to be bogged down by all that kind of Mumbo jumbo right, but like I mentioned. Money is the maker and breaker of businesses. It's the lifeline and no matter how big or small your businesses whether you have a theme park, or you have an online business selling services. Money to run. It takes some money to pay yourself. It takes some money to keep it going into. So my first tip four today's lesson is to make sure you get some visibility, and you can easily do this by having some sort of financial adviser a cfo of some. Sort to take a look at your finances now you might be thinking Omar I'm going to spend money now to learn how to lower my stress. Well, this is actually money well spent, and you don't have to spend a lot and you don't need a fulltime CFO. You can hire somebody part time as low as three hundred to four hundred five hundred dollars a month. You can even just hire them for one project or one month. Just relieve this stress. Immediately and what they're going to do. They're GonNa Look at Your Ledger. They're gonNA look at your pianist. which is your profit and loss? They're going to create a profit and loss sheet, so they can say okay. This is all the money you're making for all these different sources. Here's how much you're making Wrigley. Every month is the total you made last year. Year this year, and then they're going to do the same for your expenses. You may have some spreadsheets around, but they're really going to look deep into it, and they're gonNA be able to be able to give projections and say hey, at this rate you'll be able to grow x amount, or you're able to kind of live off your earnings this much. Or. You need to act fast. You need funding right now, or you're not gonNA. Make they're going to give you a clear understanding of how big your problems are, and give you some options of how to relieve your stress, but if you don't know where you stand, you don't know how much of an issue your finances are causing you. You'RE NOT GONNA. Really know how to solve the problem so a simple profit law. She's going to be able to show you that and also show you. You know where you're heading now the other. Other thing that this person can do for you is give you an overview of your expenses and where you're making your money. Why is this important? You're in the weeds. You're building. You're working. You're delivering your service or product. You don't really see the overview They can take a look and say hey. By the way you're spending most of your money. Most of your expenses are these three things. Is there way you can negotiate? These prices of Nyu can lower these expenses. Somehow journey, we can subsidize finance somehow. Get these down. And, they're going to make a huge effect and allow you to release some of that stress by having an overview of those expenses. They're going to be able to say. Hey, here is where you're getting hurt the most. Let's solve these problems. This is where most of our efforts will make most impact same thing with the profits I. Think it's look at how you're making your money and say you know by the way you're making most of your money with this product or this service. You may not know this. You may not be exposed this. You might think you know, but. But, they kind of highlight say you're not forty percent of the income you make is from this product, and this product actually doesn't cost you as much as the other products, so you're actually making more profit, so maybe push this product more because it makes the whole business
Huawei CFO Meng Wanzhou loses key court battle as British Columbia judge rules extradition bid should proceed
"Google spokesperson said. We have always built privacy features into our products and permitted robust controls for location data with a four to setting the record straight in a blog. Post Invidia G. Force now vice. President Phil is lower announced that the company's Cloud Gaming Service will only feature games from developers and publishers who have opted into service game developers and publishers who have not opted in will be removed after may thirty first previously include titles on g force now without express permission of publishers resulting in sudden removal of titles from publishers like activision. Blizzard and Bethesda British Columbia Supreme Court ruled hallway. Cfo Wings
Canada judge rules Huawei CFO Meng's fraud case will proceed
"A Canadian judge has ruled that the U. S. extradition case against a senior Chinese Huawei executive can continue to the next stage Canada arrested bank when ju the daughter of waterways founder in late two thousand eighteen the U. S. wants her extradited to face fraud
The Return on Investment Grant Question
"Okay Andy we are going to need to file a couple of extensions for our form nine ninety and we have grant. Our of teas were responding to that are asking for our most current form. We expect we'll have our twenty nine thousand nine hundred ninety by the end of the year if not a bit sooner. What do we do in the meantime? Is there anything else we can or should do to ensure this doesn't make our organization. Look bad to the funder. No I think in this situation I think funders are probably going to be okay with that. I mean most organizations extensions before they're nine nine hundred anyway. They just sort of do it as a matter. Of course so that they can make sure that they don't accidentally miss the deadline and get in trouble. If it's asking for your most recent ninety send them the most recently fired ninety if it takes you a super long time to get to it this time. I think you're going to be okay. I Look I look at ninety sometimes and I do have questions like in just normal years if somebody takes a really long time to get it filed it makes me makes me wonder like what are you actually doing. It's not that hard. I mean it's a lot of work but it's not like an absurd amount of work. Plus it happens every year so you should probably pre prepared for it so you know. Just follow the instructions. The most recent ninety s filed so well. So but I'M GONNA I'm GonNa ask you something so you talk about. Gosh might raise questions if it's a really long time like period of time until they get it filed in a normal normal years that don't have pandemic with them so. I'm curious to know what that like. Do you have a recommendation? About what becomes too long. Like what is a normal amount of time? So if I'm if I'm looking up ninety s for whatever reason and it's like so now we're in the middle of twenty twenty roughly right so I would expect to see a twenty eighteen or two thousand nineteen ninety. Those were the be the the two that I would expect. If I saw two thousand seventeen I would say why. Are We still looking at twenty? Seventeen thousand ninety. I mean there there should be a two thousand eighteen by now so that would be my question like if it's either going to be this year or last year it's two years ago then it's probably too long. And so maybe Andy like. Maybe that's also I mean. I think that totally is answers. The question but I guess I'm also thinking if because we don't know I mean exactly it sounds like it's just the two thousand nineteen behind on but I know there's a lot of organizations that get really behind sometimes on the nine nine hundred and I would say if if it is something like a twenty-seven feels like it's excessively long like we're a couple years past due or few years past do I mean if there's room on the grant proposal maybe there's maybe you can put a quick paragraph or a few sentences just trying if those aren't going to incriminate you further right but if you have I mean there's the caveat and if you don't have to lie about it but my point is is like if you if there's a good explanation for it perhaps just even making note saying we expect any day to have our whatever twenty whatever year it is you know a nine hundred ninety here and as soon as we get it. We'll update our files like something as a funder would make me feel better that they at least acknowledged it versus like that's business as usual and things around every year too so even if you file a bunch of extensions I mean even. It's like this even with our personal taxes right. Yeah they move the extension out to July. But that doesn't mean next year to like you still have to do it again starting in January. So all. You're doing you're compressing the pain. It is just over a rip. Just get it over at the band off get it over with and and and the you know what's legitimate reason for having a two thousand seventeen ninety at this point it's like The building burned down a lot of files. Were in it. I'm trying to think of why you with manny reason. Yeah I mean have you know maybe so are the the. Cfo was actually indicted for fraud And stole a bunch of money from us and it's taking a longer time to untangle what they did I mean. I think there could be legitimate reasons that you might have an old nine ninety but not not a whole lot of them that you really want and probably not things you wanna put in writing either. I mean that would be a little embarrassing to even talk about the Frie- yeah. It's probably not going to help. Your case happens but yeah I wouldn't WanNa talk about it
The Return on Investment Grant Question
"Okay Andy Andy we are going we are to going need to to need file to file a couple a of couple extensions of extensions for our for form our form nine ninety nine ninety and we and have we grant. have Our grant. of teas Our of were teas responding were responding to that are to asking that are asking for our for most our current most current form. form. We expect We expect we'll have our we'll have twenty our nine twenty thousand nine nine hundred thousand ninety nine hundred ninety by the end by of the the end year of the year if not if a bit not sooner. a bit sooner. What do we do What in do the we meantime? do in the meantime? Is there anything Is there else anything we else can we or can should or do should to ensure do to this ensure doesn't this doesn't make our organization. make our organization. Look bad Look to bad the funder. to the funder. No No I think I think in this in this situation situation I think funders I think are funders probably are probably going to be going to be okay okay with that. with that. I mean I mean most most organizations organizations extensions extensions before they're before nine nine they're hundred nine anyway. nine hundred anyway. They just sort They of just do sort it of as do a matter. it as Of a matter. course Of course so that so they can that they make can sure make that they sure don't that they accidentally don't accidentally miss the deadline miss the deadline and get in and trouble. get in trouble. If it's asking If it's for asking your most for your recent most ninety recent ninety send them send the most them the recently most recently fired ninety fired ninety if it takes if you it a takes super you long a super time long to get time to it to get this time. to it this time. I think I you're going think to be okay. you're going to be okay. I I Look I Look look at I ninety look at ninety sometimes sometimes and I do and have I questions do have questions like in just like normal in just years normal if years somebody if takes somebody a really takes a really long time long time to get to it filed get it filed it makes me it makes me makes me makes wonder me wonder like like what are you what actually are you doing. actually It's doing. not It's that not hard. that hard. I mean it's a lot I mean of it's work a lot of but work it's not but like it's an not absurd like an amount absurd of work. amount of work. Plus Plus it happens it every happens year every so year you should so probably you should pre probably prepared pre prepared for it for it so so you know. you know. Just follow Just the instructions. follow the instructions. The most The recent most ninety recent s ninety s filed filed so so well. well. So So but I'M GONNA but I'M I'm GONNA GonNa ask I'm GonNa you ask something you something so you so talk you about. talk about. Gosh Gosh might raise might questions raise questions if it's a if really it's a really long time long time like period like of period time of until time until they get it filed they get it filed in a in normal a normal normal normal years that years don't that have don't pandemic have pandemic with them with so. them I'm so. curious I'm curious to know to know what what that that like. Do like. you Do have you have a recommendation? a recommendation? About what About becomes what becomes too long. too long. Like what Like is a what normal is a normal amount amount of time? of time? So if So I'm if if I'm I'm looking if up I'm looking ninety up ninety s for whatever s for reason whatever and reason it's like and so it's now like so now we're in the middle we're in of the middle twenty of twenty twenty roughly twenty roughly right so right I so would I expect would to expect see a twenty to see a eighteen twenty or eighteen two thousand or nineteen two thousand nineteen ninety. ninety. Those were the Those be were the the the be two the that the I would two expect. that I would expect. If I saw If two thousand I saw seventeen two thousand seventeen I would say I why. would say Are why. We still Are We looking still at looking twenty? at Seventeen twenty? Seventeen thousand ninety. thousand ninety. I mean there I mean there there should be there a two should thousand be eighteen a two thousand by eighteen now by now so that so would that be my question would be my question like like if if it's either it's going to either be this going year to be this or year last or year last it's year two years it's ago two years then ago it's probably then it's probably too long. too long. And so And maybe so maybe Andy Andy like. Maybe like. that's Maybe also that's also I mean. I I mean. think I that think totally that totally is is answers. answers. The question The question but I guess but I'm I also guess I'm thinking also thinking if if because we because don't know we don't know I mean exactly I mean exactly it sounds it like sounds it's just like the it's two just thousand the nineteen two thousand nineteen behind behind on but on I but know I there's a lot know of there's organizations a lot of organizations that get really that get behind really behind sometimes sometimes on the nine nine on the hundred nine nine hundred and and I would I say would say if if if it is if something it is like something a twenty-seven like a twenty-seven feels feels like it's excessively like it's excessively long long like we're like a couple we're a years couple years past past due due or few or years few past years do past do I mean if I mean there's if room there's room on the grant on the grant proposal proposal maybe maybe there's there's maybe you maybe can put you can a quick put paragraph a quick paragraph or a few or sentences a few sentences just trying just trying if if those aren't those going to incriminate aren't going to incriminate you further you further right but right if you but have if you have I mean I mean there's the there's caveat the caveat and if you and don't if have to you don't lie have about to lie it about but my it point but my is point is like is if is you like if if you there's a good if there's explanation a good explanation for it for it perhaps perhaps just even just making even note making note saying saying we expect we expect any day any to day have to our have whatever our whatever twenty twenty whatever whatever year it is year it you is know you know a nine a hundred nine ninety hundred ninety here here and as soon and as as we soon get as it. we We'll get update it. We'll our update files our files like something like something as a funder as a funder would make me would feel make me better feel that they better at least that they acknowledged at least acknowledged it versus it versus like that's like business that's business as usual as usual and and things things around every around year every too year so too even if so you even file if you a bunch file of extensions a bunch of extensions I mean even. It's I like mean even. this It's like this even with our even personal with our personal taxes taxes right. Yeah right. Yeah they they move the move extension the extension out to July. out to July. But that doesn't But mean that doesn't next mean year next year to to like you still like have you still to do have it again to do it starting again in starting January. in January. So all. You're So doing all. You're doing you're compressing you're compressing the pain. the pain. It is It just is just over a over rip. a rip. Just get it Just over get at it the over band at the off band get it off over get with it over and with and and and and the and the you know you know what's what's legitimate legitimate reason for reason having for a having two thousand a seventeen two thousand seventeen ninety ninety at this point at this it's point like it's like The building The building burned down burned down a lot of a lot files. of files. Were in it. Were I'm trying in it. to think I'm trying of why to think of you why with you with manny manny reason. reason. Yeah Yeah I mean I mean have have you know maybe you know maybe so so are are the the the. Cfo the. Cfo was actually was actually indicted indicted for fraud for fraud And stole And a bunch stole of money a bunch from of money us and from it's us taking and it's taking a longer a time longer to untangle time to untangle what they did what they did I mean. I think I mean. there I think could there be legitimate could be legitimate reasons reasons that you that might have you an might old have nine an old ninety nine ninety but not but not not a whole not lot a whole lot of them of them that you really that you want really want and probably and not probably things not you wanna things put you in wanna writing put in either. writing I either. mean that I would mean be a that little would embarrassing be a little embarrassing to even talk to even about talk the about Frie- the Frie- yeah. It's yeah. probably It's not probably going to help. not Your going to case help. Your case happens happens but yeah but I yeah I wouldn't WanNa wouldn't talk WanNa about talk it about it
Huawei Meng's U.S. extradition case hinges on key ruling in Canada on Wednesday
"And the three way fight between China the U. S. and Canada over while way reaches court later Wednesday when CFO mung wan Joe has our first shot at beating an extradition hearing the Supreme Court of British Columbia will rule on whether her detention meets a key threshold of Canadian law if the judge says no she could be released from house arrest if not extradition proceedings to the U. S. will
AI Opportunity in Insurance, from Process Automation to Decision Support - with Gary Hagmueller
"This week's episode is focused squarely on insurance. There's a lot to keep track of in the space from claims to underwriting to back in process automation to customer service every six months the landscape of AI vendors and known use cases in the enterprise companies changing in altering in part of our work involves staying on top of that that means speaking to heads of AI and innovation leaders at companies. You might know like Geico allstate or Axa. Some the biggest insurance players in the world as well as staying on top of the start up ecosystem this week we speak with one of the players in that. Startup ecosystem. Gary Moeller is the CEO and president of Clara Analytics Clara analytics based in the bay area. And they are focused squarely on insurance artificial intelligence applications Gary previously was the chief operating officer at a house. D One of the rare companies in Silicon Valley to raise hundred million dollars plus for an artificial intelligence company and he was before that the CFO at Zoro which is an incredibly successful subscription management payments. Firm out again in the bay area so gary has got a pretty storied past in the startup world. Clarice raised about twelve million in there. Certainly on the way up insurances ripe for disruption and there's plenty to cover so gary gives us his perspective on where is making its way into insurance where he thinks it's going to make the biggest impact in the relative near term without further ado. We're going to hop right. It says Gary Hag with Clara analytics here on the business podcast so Gary. I wanted to start us off with just your idea today as to where is making a difference in insurance what what functions. It's being adopted into where the traction is today. If we look at a in the Insurance Enterprise Great Question. Damn yeah so so. There's definitely a whole bunch of different places where we're starting to see a proliferate. I will say it's probably very early days really for a big time. So we're you know. Obviously we are very focused on the claims operation space and so we're seeing a variety of different places where this is getting applied. It's getting applied. At least we're we're we're seeing it generally in two flavors things that can kind of be automated away. You know think simple tasks that it you know today. You got a human doing that. Maybe doesn't need to be done and in the second place where we're seeing it. Generally is is occurring in places where there are very complex in weak signals. That have a pretty large bearing on the outcome of whatever the person is working on or whatever the group is working on in is really being used as an augmentation of human capability but so think about the ability to kind of see around the corner and figure out where the things that that could affect what they're working on positively or negatively are In giving them action in on so like nausea as he said. Our focus is on claims ops but yet we have it a guy on my board works in in underwriting and we seen a bunch of different places where this is starting to apply even in the actuarial space. But it's been you know it's really feels like there's a. There's a groundswell of interest activity coming. I like your break out here when you when you look at a impact and insurance. Maybe we could do this with any sector. But you're talking about two categories. One is what can be automated away. I like the term. A lot of vendors are afraid to use that phrase even because it it comes across. You know immoral. You're one of those automation. People stealing job I. I hear a lot of vendors been far too tender with being able to say that phrase Second informing decisions. So it's sounds like a short breaking things up into we look at insurance. What might be an example of each just to give people a Nice Representative Lens into space some automated stuff and then some some decision informing. So I'm GonNa give you some thoughts on both of those but I do WanNa touch on the point on the automation automation away. I feel like that's a topic. That comes up a lot in this whole a discussion on. I don't think it's as sinister as which you portrayed it as I think it's really a situation where there's a lot of tasks that are being done today that I guarantee you that people do not. I don't WanNa do. And it's part of their regular job and so if you free them from doing tasks that they don't WanNa do in focus them in on the things that they would rather be doing that. They are probably better at doing right. That actually ends up making everybody better off instead of giving you kind of an example right. There's a lot of places where you have things blow through processing right where you can get a claim you can analyze. The machine can analyze the claim. The machine can make a determination that like this routine claimed. Let's just go ahead and eight. You know issue payment or issue settlement or whatever On this particular thing so that's maybe an example of things that the kind of flow through the machine can take care of An ambitious close out without necessarily having to kick it up to somebody who is just going to you know. Look at it. Roll their eyes. It's just another one of these ones again. You know do a couple of things. Close it out and move on right. So that's kind of an example of the automation flow the other side of it. So think of it as kind of decision support or or kind of enhancements human enhancement is what I would basically think about it. Were that's where you know. This is this by the way is common across all areas of machine learning. Were what you're doing. If you're tapping into an appropriately. Large amount of data. You're going to begin to pick up weak signals right in in things that are actually deterministic. That most humans aren't going to be able to go off and do right in in. That's for two reasons number one. They may have been doing this job for ten fifteen whatever years to have a certain way of doing the job and they're just never going to look at those other sources of data right. The secondary part is that some of those sources flow in places that people generally don't even look at so if you've figured out how to tap into all these different data sources and you can then get a much more complete picture like in the case of the sorts of things that we do. We can do a much more complete sense of what's going on with an individual claiming give evidence on like exactly how to attack this problem. Right now to mitigate loss or wind up doing something that's going to wind up making the claiming happier subtle faster. That sort of thing in. Maybe there's an interesting sort of exercise that we could do so I guess one quick thing I did I certainly wouldn't call automation sinister per se. I think there are to be some cases where someone gets freed up to do something more cognitively interesting and it's a thank goodness kind of experience. There will be other times where you know. Abacha folks in India Needham Filing TPS reports anymore. You know what I mean. They'll find somebody else to work with point blank period. There's going to be that and I think everybody needs to be pretty honest about it but there will be plenty of of experiences where we'll be able to move people up in work more interesting things when you look in a business and obviously insurance is your space and you aim to sort of help. Maybe business leaders think through where I can find a fit. You look at a business and say oh here's some identifiable for our potentially automative bucket and then here's some ones that we can also identify for the decision bucket. How do we put on a pair of goggles to to see those opportunities an insurance? What might be helpful.
Siemens says profits down, this quarter could be the bottom
"Now to earnings and Siemens a script is fully a full custom softer Europe's largest engineering company saw profits single divisions second quarter adjusted a bit from its industrial businesses fell eighteen percent of the seo checker is a spoke to Bloomberg's and it would serve you and said he expects to see the bottom of the downturn this quarter take a listen I'm not happy to see that the market is responding well to what they have been saying the oldest leave Siemens has been very early in restructuring the company could have a civilian portfolio be it healthcare beating Dustin automation and also the actions we have been taken on the energy side the right on plan with our spin off of the Siemens energy business so we will have by that time we would have a very very beautiful because company portfolio so I think that's what you're looking at and of course the times are turbulent into complicated and very hard to deal with because there's so much uncertainty from other partners scenarios but the fact of the matter is there will be a time after court or not and that's also the time to look at to get prepared for the upswing and how we can benefit from that in in a proper way and I always say to my peoples the night the starkest before dawn so think about the future too without neglecting what needs to be done now at the very values CV or double crisis yes some comforting words I'm sure it says the balance sheets and how you prepare the balance sheet for this crisis as and then Joe you've recently secured another three billion euros in credit lines do you have concerns around the Quincy no we don't really though and I mean the you know cash is not endless obviously so we are mindful about cash position to but you have a very experienced very strong CFO who holds things together email as you know we have had about eighty M. Italy February in twenty twenty to be paid out the dividend of C. ninety euro per share which was up ten cents from the prior year the Soviet we are done with apple and buys September by end of September we will putting that the Siemens energy assets to the market as a spin off that means this is a dividend in kind of material science so that means that there will be a shareholder value associated with that tool for fiscal twenty twenty on the equity side this is true we did secure a three billion loan but that loan actually he's supposed to transfer to the Siemens energy assets so that well financed and built you know the good position for a successful start into
The Chief Security Officer in (and out of) a Crisis
"When I first started working in security you would generally have see so that reported somewhere under workforce. It like a very focused. I will make sure your laptop is secure and that was security. Probably Twenty years ago I had to study the nature and design of chain link fences. That was protecting my data center right. That was very much a part of the curriculum. If you wanted to get information security was understanding physical barriers. We no longer run data centers. Everything's Amazon everything's in Google. Everything's Microsoft the world has gotten more complicated technically and there's a combination of factors. There one is just the evolution of the cloud. Every company has a hybrid environment. Now if you've been around for more than five years and you have the emergence of crypto currency and the pressure. It's putting on financial security in particular. The laws have changed so you have. Gdp are in Europe which is just starting to see the massive fines come out on the companies that didn't invest the right way insecurity or had major security incidents we're seeing boards and CEOS held accountable. And so there's a personal sense of anxiety that those board members and senior executives have and they want to have a senior leader who can help them navigate the security issues that they face looking at all those complicated factors. I think it leads to this question of is that too much for a single roll to handle as these teams get to be really large. It's hard to find a security person that can run a couple thousand people organization that can run a hundred plus million dollar budget. We've never really develop that muscle memory in that skill set in some of the larger organizations. You're still seeing the decision not to go with Ceasar's Eso and have different leaders for each of those functions sitting in different parts of the company. When I was the CFO at Uber I had responsibility for the technical security of the company. Meaning make sure we don't get hacked but also physical security of our offices and safety of our employees oversight of our attempts to minimize fraud and then rider and driver safety. Those are four very different disciplines that require very different technical teams. Sometimes you'll hear why don't they have a senior security leader and it may be because they've decided our physical security risks are so different from our technical risks and we don't have one executive who can do a great job over both of them the fact that these companies sometimes are structured in a single role. Sometimes they're structuring it out based on the different types of problems. What do you see as the trade offs in those two? Different structures is one better than another more. I think it definitely depends on the company and the business that they're in but there is a bit of a pendulum that swings from centralized to decentralize and I think I'm on the second shift of that pendulum. Now as we've moved from building highly centralized organizations we get these massive security teams and then we can't really find leaders that can run these security teams and then so it goes back towards a decentralized approach. My personal opinion is centralized the organization. You're sort of seeing this accountability. Wave twelve years ago. I went through a massive breach at a very large bank. I was running the incident response program so I was kind of frontlines and they held a cio of business align technology executive accountable and the security team actually got more budget. Now we're seeing when there is a breach of the ceasefire has held accountable. There's a new team that gets brought in. There's a complete restructuring and a big driver is the regulators saying that they want to see a meaningful commitment to change and that the sea so should be empowered to make changes in the organization. I want to talk a little bit about win. This role makes headlines. What's the role of the sea? So when there's a breach or when there's an event will if you step back and think about the role of a security leader regardless of which of those functions you're talking about physical or digital or safety cars. There's really three different responsibilities number. One is prevent something bad from happening. That's what we all come to work every day and probably why most of US chose the profession in the first place but then job number two is assume that you've failed at that and have a good incident response. Plan have the ability to detect something bad going wrong as quickly as possible. Then there's the third discipline which is okay. There's a crisis. How do we respond to it? And the interesting thing in this profession is that a lot of us joined because of number one prevent harm but get judged on number three crisis response. There are a lot of really good security engineers who say wow the head of security Job I don't want because I don't want to be a sacrificial lamb. I think it's really interesting. You brought up the concept of sacrificial lamb. 'cause we did just see capital one replace there see so following the data breach. To what extent are these breaches inevitable and is it fair to beholding anybody to account if you go to the closed door? See so conferences. This is one of the topics that debated heavily right now. So the first time I took this role was at facebook and I got great support from the executive leadership almost unlimited budget ability to grow and hire great engineers and by technology and the most surprising thing is that you realize you can't buy your way too good security you literally can't write a blank check and have great security tomorrow. Security requires long-term investment requires you to run alongside the development teams and the business teams understand them and help them reduce their risks. And on one hand you'll hear the sows who think it's unfair saying look. I shouldn't take the fall if I don't get to make all the decisions to prevent the fall but the reality of the role is you. Don't get to make all the decisions security. Such a cross functional process. There's so much that goes into what risks the company decides to take versus what they don't and then on the other hand there's no going in. I'M GONNA be the fall guy or fall girl if we don't do it right and so they're going to probably be more vocal and championing their cause among leadership
Alphabet: A tale of two quarters.
"Got starbucks today. We have got MasterCard. But we're going to start with alphabet alphabet. The first quarter revenue came in higher than expected to report was pretty good but this seems like what are those times where it was the conference call. That is driving the stock to comments from senator by the CEO and Ruth Porn at the CFO. That that that's seems like what is pushing the stock up eight nine percent today. Chris Means Sudar and Ruth I think are just really taught managers and the way they talk to their to their investors of their employees. They wrote the way they run the business. I think I think we've talked about how important ruth has been to to the just the discipline of of Alphabet. Google over the last few years so she tends to be very conservative and so talked about the real challenges they had in this in this quarter especially late soon. Dr talked about the tale of two quarters to take a take a nod from the Charles Dickens novel the fact that early on and was very positive things were going very well and then really in March with with ad sales dropping by ten percent in March so it was a very tough end to the quarter and the guidance. They were very conservative. I think just talking about what's going to happen in the AD market going forward. We don't know how much of the increase in traffic will monetize. But but clearly investors are excited by of which. I am one excited by what is happening at Google. I mean like you said. The revenues came in a little bit higher. They were thirteen percent up. Fifteen percent on a constant currency. The strong dollars had a big impact so many businesses. Eps was a little bit light but it was really just more talking about what the future is. is having and the impact that that. Cova nineteen is having on their business but also in the world. I mean I was just some some comments from the call for example one hundred million students and educators now using Google classroom. That's double the number from just march to just march an extensive use of Google assistant a massive increase in demand from chromebooks. Dr Said So just there's continuing interest youtube revenues. Were up three three percent in the quarter up now more than four billion so it's just a continued emphasis on the way that Google is managing the business and the value. They are Contributing and I think some excitement now on the analysts. A lot of emails upgrades this morning. Just at the advertising market isn't going to be as bad as somebody had expected
HSBC sees mounting credit losses after pandemic halves first-quarter profit
"So much now let's get back to the banking earnings from this morning Europe's biggest lenders have reported a surge in credit losses amid the corona virus outbreak HSBC taking its biggest charged about deaths in almost nine years and saying it expects credit losses to rise to as much as eleven billion dollars this year the picture was a bit better over at UBS which saw net profit surged forty percent despite concerns about income streams from its wealth management unit for more let's bring in Jonathan Tice senior analyst for European banks at Bloomberg intelligence I'm Jonathan great to have you with us I know going into this you were hoping perhaps for some sort of guidance from the transformation planned they announced back in February a lot of which has of course been put on hold because of corona virus the shares are down just a little bit today down one and a half percent in London and a what was the biggest takeaway for you what sets the scale of the credit losses that we might see in twenty twenty but also the fact that that number as CFO you Stevenson said to us on TV could be subject to change
Rail Operator CSX First-Quarter Net Beats Estimate
"Of CSX more than a percent and a half after reporting revenues in line and six beat on EPS but the biggest headline the east coast rail pulling full year. Eps guidance. Something we've seen from another of a number of other companies and one of its competitor's Union Pacific on that Call Co. Jim Foot says production demand was simply too hard to forecast and this cove in nineteen environment also during the call. Cfo Kevin Boone said. The company recently raised five hundred million in dead end. Despite polling guidance the company believes it is in position for a potential recovery and is maintaining a strong cash. Reserve liquidity position is extremely strong with nearly two point. Five billion of tests and short term investment represents multiple what we would consider normal targeted cash level or cash may be strong but volumes. Were Week over week or year. Start Cue to the Kobe. Nine hundred impact on. Csx is already being seen in the three weeks since the first quarter ended with double digit declines each week now on the other side CEO Jim Foot. He's really praised. The rotors for their ability to work. During these conditions and keep critical goods flowing on the rail. The company also said a new efficiency metric for the first quarter. But I think right now Melissa. It's all eyes on cue to
Cyberpunk 2077 is on track
"CD project red commits to its September release for cyberpunk twenty seventy seven CD project reds. Cfo Theodore Ni. Lua wits apologies for the pronunciation there which I am almost one hundred percent certain I got wrong. But in any case he recently took to youtube to share some financial updates for C. project. Read the videos a little awkward with Neil lewitt's looking as though he has been taken hostage but it's really a video meant for investors and not. Really meant to generate hype. I CD PROJECT REDS FUTURE. But there were some interesting details in there mainly about cyberpunk twenty seventy seven and that it is still fully on track for its September Seventeenth. Twenty twenty released eight in the video new said due to the outbreak of the coronavirus pandemic the CD project team has been working from home. Since mid-march were giving it are all and thanks to the tools at our disposal we have been able to maintain all continuity of our efforts. Our goal is clear it September. We intend to deliver to gamers around. The world are greatest production yet. Cyberpunk twenty seventy seven. The entire past year was a very intensive period for US development of cyberpunk entered its final most critical stage where we put the finishing touches to the game in parallel the next phase of our global promotional campaign elevated interest in the game even further to add some veracity to things apparently moving along smoothly. Cd Project Studio head. Adam Douse key. Tweeted a follow up to a March tweet that read we just submitted at cyberpunk game to age rating agencies around the World Peggy esrb etc while we wait for the game to get rated. We work on polishing technical aspects and play testing. It game is looking better and better with each passing day but Dallas Cowboys tweet. Today responded to that tweet and read very happy to share some progress on this cyberpunk. Twenty seventy seven has already been rated by the vast majority of ratings boards around the world the rest of the financial video from new bowitz shared growth percentages for the company reminded investors that there is an online store to buy. Cd PROJECT MERCH. Now and also highlighted the switch version of the witcher. Three saying that it sold very very well which contributed a lot to the company's twenty nineteen. I think cyberpunk twenty seventy seven is the game most expected to receive a delay and not come out in twenty twenty and that was before any of these. Kobe nineteen issues. It's just a game that seems more and more impossible. Every time they show it all of this information does inspire confidence though. They've basically got five months to finish this thing up and I really hope they will.
Pareto Product Programming with Philip Poots
"Has ruby on rails been the focus of the majority of your web developer career yet pretty much so since since two thousand seventeen I go to a job in two thousand nineteen so actually in the North. I was in the In Scotland I and then I moved to the northeast of England and it was actually pretty difficult at that point to find a job in rails in the UK. He either have to go down to London which I wasn't very keen on am or what I should have done is like applied to somewhere in America like twitter or get up before they were huge right so so I started dot net job. And I'd never done anything apart from rails so during the dot net job actually gave me that experience of high horrible and Terrible. It is to program without rails especially at that point right because we're talking. I duNNO WINDOWS ARE. I don't know what don't that hot at the time they didn't even have a speed on. Nbc was literally Web view as it was it was just a mess and the things I was building I was like. I could do this in a couple of weeks with rails. Why am I spending like three months so I quickly got out of that fund? The job with a company actually started very early with the pre one version of rails but I think the version at that point was one point two point three and until I worked in that for a couple of years then. I moved to sage in accounting company. That's where we did like the real to reel. Three upgrades moved to give a like a funding platform for charitable enterprises and that was mainly rails. The only thing there was we moved from like postscript to doing Mongo DB and then moved very quickly back again and then moved to funding gets where it was back in amber jazz from Dent. And I'm where I am not club. Collectors also Manley rails. Yes Oh so pretty much ten years of reels with little ventures here and there to other things I think that's a really fascinating background and I love the fact that you have prior experience with different language and a different framework. You can truly appreciate all that rails can give you. I'm at the point where I think I'm going to have to start producing patches for developers who've done the rails two to three upgrade the rails three to four upgrade. Just because I feel like it's a badge of honor at this point and luckily we're very spoiled now. As Ruben developers were. These upgrades aren't nearly as tough as they used to be. Absolutely so I got to ask you a little bit about this in person when I met you a pair of Srb but I'd love to hear all about club collect and what your role of a VP of engineering means to you. Yes sure so. M many ways the rule of VPN engineering is at club. Collect is is very much a dream job for me so I actually started a club collectors. As a developer in in in the river tame 'em Very grateful to two atom pulse. Eric co-founders so eric was the CTO on 'em he decided to take a step back from operations he loves being involved in companies at the early stages am and he asked me to to to basically step into his position 'em so he's still acting CTO when he's still like assigning board but then I'm like handling day today operations within the engineering and the reason I like. It is the reason I'm always attracted to startups is to be in an environment where you're wearing a lot of different hats and you're in a lot of different things with the goal of seat to have a big impact is possible this versus you know. My experiences in smaller companies are sorry in larger companies. We have a smaller role in a smaller impact. And we really frustrates me. When you get you know m specs through from someone two or three people removed from you with things in them where you think you know if we just change this little bit and not little bit we could have this done in a couple of days but the way it's written it's GonNa take two weeks and then to suggest it and to get the answer back. No this is the way we're GonNa do it at that kind of whist an eliminating. That waste is why I really like working in the startup environment. And so so the you know the day today is is very very an 'em anything from talking to the rest of the management team of the leadership team. You know sales customer operations at customer success am The CFO you know by long term strategies by short-term things that we're going to be Dang 'em to like the nitty gritty of domain name. 'em STUFF FIGURING. I like D mark and all the security stuff that comes along with the role but but really the thing that I love the most about being. Vp of engineering is. Is the
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"Questions here. <Speech_Music_Male> You know given the amount of <Speech_Male> free cash flow that your company <Speech_Music_Male> generates <Speech_Music_Male> and <Speech_Male> how undervalued valued <Speech_Male> in <Speech_Male> some people's minds <Speech_Male> mine in particular <Speech_Male> thinks it is <Speech_Music_Male> won't what <Speech_Music_Male> would you do different <Speech_Male> with the business <Speech_Male> or where would you make <Speech_Male> investments <SpeakerChange> if you didn't <Silence> have shareholders. <Speech_Male> Yeah <Speech_Telephony_Male> I think it's a great <Speech_Telephony_Male> question. <Speech_Telephony_Male> I think <Speech_Telephony_Male> that the answer to <Speech_Male> that revolves <Speech_Male> a lot around <Speech_Male> the retail. <Speech_Telephony_Male> Business Right <Speech_Male> we. We have challenges oranges <Speech_Male> and making decisions <Speech_Male> every single year. <Speech_Male> About how much <Speech_Male> selling and marketing <Speech_Male> dollars. We <Speech_Telephony_Male> invest <Speech_Telephony_Male> in that particular <Speech_Telephony_Male> business. And <Speech_Telephony_Male> it's a function of <Speech_Male> where we see the opportunities senator <Speech_Male> where we see the <Speech_Male> business going <Speech_Telephony_Male> but if we're <Speech_Male> if we're <Speech_Male> looking at allocating <Speech_Male> significant amounts <Speech_Male> of cellular market. <Speech_Male> We can't ignore <Speech_Telephony_Male> the fact that selling <Speech_Male> and marketing dollars flow <Speech_Telephony_Male> through the PNL <Speech_Male> the impact <Speech_Male> in near-term profitability <Speech_Male> to business. <Speech_Telephony_Male> So <Speech_Telephony_Male> I would say it's <Speech_Male> like any other. Public <Speech_Male> Company is <Speech_Male> is weighing the <Speech_Male> pros and the <Speech_Male> cons of <Speech_Telephony_Male> perhaps sacrificing <Speech_Male> the near <Speech_Male> term profitability <Speech_Male> part for the long <Speech_Male> term health of the business. <Speech_Telephony_Male> Because you <Speech_Male> know this is well if <Speech_Male> not better than I do <Speech_Male> is that you. There <Speech_Male> is a relatively <Speech_Male> short <Speech_Male> term natured. Bias <Speech_Male> of the public markets <Speech_Male> and. That's not a criticism. <Speech_Male> It just is what <Speech_Telephony_Male> it is <Speech_Male> you know. <Speech_Male> Sometimes you difficult <Speech_Male> challenge engine <Speech_Male> is you have to go out and <Speech_Male> say yes okay. <Speech_Male> This year's performance <Speech_Male> is <Speech_Male> <Advertisement> five percent less <Speech_Male> than where you <Speech_Male> think it ought to be because <Speech_Male> I'm reinvesting <Speech_Male> in the business and <Speech_Male> next year you're you're <Speech_Male> gonna see the fruits of <Speech_Male> that Labor you know it's <Speech_Male> it's it's <Speech_Male> a challenge of <Speech_Male> balancing <Speech_Male> out the future <Speech_Male> of the business which <Speech_Male> with the what have you <Speech_Male> done for me lately approach <Speech_Male> and I think think <Speech_Male> that's <Speech_Male> that that's on us <Speech_Male> to be able to <Speech_Male> articulate that <Speech_Male> that thesis appropriately <Speech_Male> so that <Speech_Telephony_Male> people <Speech_Male> expected understand <Speech_Male> you know <Speech_Male> why those investors be be <Speech_Male> made and obviously <Speech_Male> it's incumbent upon us <Speech_Male> to deliver on <Speech_Male> the benefits that they <Speech_Male> produce in future years <Speech_Male> but that's probably the biggest <Speech_Male> challenge in a public <Speech_Male> context <SpeakerChange> for <Speech_Music_Male> us. I think <Speech_Music_Male> yeah well Kirk <Speech_Music_Male> thank you very much <Speech_Music_Male> retiring. It's always a <Speech_Music_Male> pleasure talking to you and <Speech_Music_Male> it's been an especially <Speech_Music_Male> big pleasure this <Speech_Music_Male> time because I get to <Speech_Music_Male> give it to everybody <Speech_Music_Male> else to listen to so <Speech_Music_Male> thank you <SpeakerChange> so much for <Speech_Music_Male> <Advertisement> taking the time to talk <Speech_Music_Male> nate. My pleasure happy <Music> to do so <Music> <Music> <Advertisement> <Music> <Advertisement> <Music> <Advertisement> well. That's IT <Speech_Music_Male> <Advertisement> folks. I <Speech_Music_Male> <Advertisement> hope you enjoyed the interview. <Speech_Music_Male> Sincerest <Speech_Music_Male> thanks to Kirk for coming. I'm <Speech_Music_Male> back onto the show. <Speech_Male> Also a really <Speech_Male> big things to Kevin Cole <Speech_Male> who heads up energies. <Speech_Male> IRR team <Speech_Male> this interview wouldn't <Speech_Male> have been possible without <Speech_Male> him and last <Speech_Male> but not least <Speech_Male> a huge. Thanks the <Speech_Male> Dan Hind Mike <Speech_Male> it Dan. Hi I'm giving <Speech_Male> permission to use his music <Speech_Male> on the podcast. <Speech_Male> So <Speech_Male> if you like what you hear <Speech_Male> you should <Speech_Male> really check out Dan. Heim <Speech_Male> that's D. A. N. <Speech_Male> H. ee. <Speech_Male> I am <Speech_Male> Dan Hind and <Speech_Male> finally. <Speech_Male> I'd like to ask once <Speech_Male> more for your support. <Speech_Male> If you get any value <Speech_Male> out of the stock podcast <Speech_Male> please <Speech_Male> please consider <Speech_Male> making a donation and <Speech_Male> click subscribe <Speech_Music_Male> submit <Speech_Male> or review <Speech_Male> or just <Speech_Music_Male> spread the word. I'll <Speech_Male> leave it there. <Speech_Music_Male> I truly hope you <Speech_Music_Male> enjoyed the interview. <Speech_Music_Male> Take care <SpeakerChange> and good <Music> luck with your portfolio uh-huh. <Music>
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"Own? Yeah so you mentioned in your three to call you emphasize. Maybe it's just me who who felt like you were emphasizing the word earn when it came to new investment grade and I almost got the sense that maybe you felt like you guys were already investment grade. But you have to earn it within within the eyes of Moody's Fitch and innocent P.. So I I'm just GonNa here's what you was there some sort of underlying meaning they're in or maybe I'm just reading eating way too much into that and okay and then just secondly just what is it about the business and the leverage that might make you think in Dr Jesus recognized as investment grade within their eyes and and what needs to happen. Sure well a couple of things. We just target investment grade metrics which isn't hasn't eaten announcement we made towards getting to that roughly two and a half times net EBITDA. For its own sake we did so for a reason and the reason is beyond the obvious right. You know the the the better your credit rating lower your cost to capital and access to capital that all that's true but we also see a strong correlation between the the manner in which are free cash flow is valued whether you want to call that a free cash for multiple on the one hand or free cash flow yield. Is some people like to think about it. That's the that's the free cash flow of the company divided by the market cap. If you will Right now that number for us is still in the mid teens. We do not think that reflects the relatively of low risk proposition that our company deserves and there is a strong correlation between quality of credit rating and the robustness of or lower free cash flow yield or higher free cash flow multiple. So it was really with an eye towards the equity side That we embarked on this journey towards I investment grade metrics and and later investment grade. And there's a distinction between those two because the credit rating of any company is a function of two things statistics and risk right. The corollary are there isn't like risk adjusted. Return right if I if I told you your return was ten percent but the risk was five times the market. You wouldn't think that was a very good return so context matters. They believed that the metrics that we have put forth today anchored by that two and a half times is enough to deserve or earn investment grade rating but our risk in the ratings world has translated into risk rating and it's really SNP which is the best example of that right now are restraining about is fair. F. A. R. Which is basically the same risk rating. We've had all the way back to the days when we were you know. Just stay power Producer because we've evolved the risk of our model we believe we've we deserve a better risk rating to go along with that and we're sympathetic and understanding with the folks that Rainsy's that that doesn't happen overnight and much. It's the same way the mandate is the same on the equity side and is it is on the rating agency side. We have to continue to execute as we did this year. As we fully expect to next year to demonstrate through performance that we in fact are delivering on that reliable stream of cash flows. And I think that will come with time the I I was getting the metrics where we think they ought to be. The next step is leaving no doubt in the minds of our investors in the rating agencies that in fact the lower risks of our businesses we see them manifest edifices themselves in reality. Yeah so I've got some closing.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"The retail business just a little bit more Over the past year of over the past several years of accompanies like yourself and Vista and some previously public companies have acquired retail businesses. And so there's been a lot of consolidation in the space and a lot is a relative term. But I I would just love to hear what you're sort of high level thoughts are and what you think would be important to shared to listeners about retail consolidation. In what you want in our plans are within the retail space Yes we have been as have been our competitors. There's a relatively opportunistic in taking advantage of opportunities that arise out of the consolidation trend. You know we. We have about a thirty percent market share in our whole all market in Texas. We're not prohibited from going higher but it takes increasingly large acquisitions to move the needle in terms of that particular market share. and You you know it's tended to be the case that most of the consolidation opportunities have either been very very small or relatively medium sized acquisitions and in medium size in this case. I mean less than a half a billion dollars and we've seen that in a number of cases over the years I think a lot of the would be consolidation. Candidates have been in fact just that consolidated there are other potential larger competitors out there that may or may not decide to put themselves up for sale but so also more often than not will will expect to see smaller opportunities and I don't mean necessarily consolidation from an opportunity but we see opportunities practically tickly every single year to buy just small books of customers from relatively small retailers You might ask yourself. Why a small retailers doing that? They're basically just monetize. Some of their customers to raise capital could be because they they need capital to post collateral and because they've got a hedge their power price position they don't own generation but all of that has contributed to you know some of the consolidation so the consolidation is taking place in traditional and it's also taking place in the context of what we called. SBA's or small book acquisitions which you know sounds like what it is just acquiring small books of customers from relatively smaller retailers who who are raising capital through monetize those customers we take advantage.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"Or may not be accurate. And you know what were the actual is at the end of the day so fast forward a couple years from whenever a sell side report comes out or a Wall Street analyst report comes out. That says your Yvette Dot is going to be declining into perpetuity because power just keeps getting cheaper and that's oftentimes it's not the case because power prices are super volatile. All true and and I would say that that dynamic that you just accurately describes exist for two reasons but before I go into this two reasons I would see. You're correct. It tends to be the case. Generally speaking that the you know the sell side analysts will just take the price of power in the forward curve and push that through their model. Or what are they modeling in that particular context their motto in the generation side of the business. How profitable does that imply? The generation business will be over time. And if you're taking a forward curve if you will or the forward prices for power in a given market and that market is what we call backward aided or the prices are declining over time obviously that shows a declining profits dream but it also ignores the other side of the business As I talked about we talked about at the beginning. This conversation. We are also in equal magnitude especially in Texas in the retail business which means that declining power price curve if you take it at face. Value is declining cost of goods sold on the retail side of the business where the price of electricity to the retail customers tends to be a lot steadier. It doesn't necessarily forward the forward curve so in one sense that only tells half the story and then the other sense. There's you know you always. You always have to be hesitant near Sommese. Don't believe the forward curve. But I think we're power. Prices are concerned and I'll take our core market which is Texas which is where the bulk of our profitability comes from as an example book. The price of electricity in the forward curve is a function of two things one in combination what the future prospects of Supply Lyon demand are. There's economics one for you. And the other is liquidity which means how many bids and asks or how deep is that market. Get so if I was looking to buy power off of that forward curve three years from now or in two thousand twenty three you know. Are there a lot of buyers. There's an sellers behind that particular forward curve and it tends to be the case that that answer is an unequivocal no and the reason is relatively simple. Who is that marginal buyer who is the demand side of the forward curve well in markets where power is deregulated? Why would have someone? Someone have the reason to buy wholesale electricity because they're in the retail business like we are but very few of the retail customers other than the large large commercial and industrial customer. That I mentioned before Ken to lock in or sign up a contract for power longer than a couple of years which means environment looking to hedge or lock in the power that I've obligated to sell the end use customers. I haven't locked in the revenue side of that equation quite yet. So there's a dearth of demand when you go out the curve and that influences tremendously the shape of that curve. The other is I mentioned. Supply and demand economics connects you know. Texas is a very tight market. What do you mean by tight? You know on the highest peak demand day relative to the amount of megawatts in the system system. There's less than a ten percent premium on megawatts available to supply demand and expected demand. Itself that means if you get a swing in in a hot day which means everybody's not going to turn their air conditioners off. You got very little cushion before you run out of megawatts. That's a long winded way of saying is there needs is to be in that dynamic more megawatts added to the system in order to keep up with the pace of demand. And when you start to prognosticate how many megawatts lots are coming into the system. When you begin to start to get a lot of megawatts coming into system outpacing the the pace of demand that can create a pessimistic view of where the power prices are but of course reality has to intersect and say even if I spread sheet that number of megawatts coming into the system? Does that mean those number of megawatts are gonNA show up on that particular time line and that amount of uncertainty also tends to influence the conservatism or the downward sloping Expectation around prices. Both of those two dynamics tend up under represent reality one meaning that supply and demand and the liquidity challenge Alan of the forward market and the other being even if you accept that at face value. You're ignoring the other half of the equation. which is the retail business? Where that's the cost of good sold if you will? Yeah could you go into.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"About consumer preferences within the retail business. This I'm and also changes over the past twelve months. Are you seeing. I mean is it a is it a gradual increase or is it a pretty significant increase in the appetite consumers to have more renewables in Texas. Sure I I think the consumer preference side of things are we. Ah Within the industry. We've got more terms of art that require translation. Then you could say we tend to refer to the residential part of our business. That's that's like you and me individual consumers of electricity as the mass mash business in the mass business. That's been relatively steady And and that's where we're fortunate going back to my answer your previous questions in this. You know multi channel multi product strategy one of our businesses that we own and our brands ends is Green Mountain Energy Green Mountain markets solely renewable electricity. So we can ensure for that customer is interested in that that a hundred percent percent if that's their preference of the power that is sourced to supply. The the the needs of the home in this particular case is sourced one hundred percent for Nobles Nobles and that that pace of change the demand for that type of product is certainly growing We've also seen. I think this has been more cute on. But we call the Commercial Industrial Austrial side of things so the larger commercial or in some cases very large industrial customers increasingly. They are interested in their own because of their own sustainability a Challenges and objectives is making sure that they are environmentally friendly for lack of a better term in the in the power that they procurers Arp so we've recently introduced a product out of the commercial industry sort of our retail business that is renewable. Select that in much. The same way as I described Green Mountain energy allows that end use customer and if it's a commercial or industrial without necessarily constructing solar panels on the roof of the manufacturing plant went to still nonetheless source. Their power needs increasingly from renewable electricity. And that's really you know driven a lot of demand for us and it also means that we have to ensure we have access to renewable electricity and there with the pace of change and this is more economic because solar. Let's let's use that. For example has increasingly been driven down in terms of the cost to install and the the more that cost to install solar solar has been driven down the more competitive it has become with. The you know the overriding price of electricity. Right I mentioned before in order to be profitable. You GotTa make sure that the price of power is sufficient to compensate you for the capital. The you put in place increasingly that is the case with solar and in some cases even even above and beyond needing to have government subsidies tax subsidies and the like and when we've seen in Texas for example the pace of a new build on solar begin to grow rather than buying that solar or or being the one to invest or or build that solar power plant we've simply signed long term contracts contracts to off take some of that solar power and then our marketing and sending that through door and use customers. One that allows us to supply that increasing demand from that part of our customer taste and to it allows us to do that in a way. That's not as capital intensive for us. We have a very strong balance sheet. Were good counterparty for those entrepreneurs that are building those new solar plants and we feel in the current context. That's a better means by which for us to get access to those nobles so that we can continue to meet the demands of our customer base where there were noble product is concerned and in other other positive returns for energy.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"A ruinously slow but firkh and PJ 'EM and capacity markets and. What's happening up? There always seems to be kind of a gray cloud for for the power producers. And there's a lot of stuff going on right now and I would love to just hear your thoughts on on the dynamics. What's at stake steak? And what does it mean for energy. longer-term sure I that that's a good example of Regulation if you're at work. There's a distinction thinking between regulation in terms of regulated utility and regulation that you still faces a competitive power producer but nonetheless what you're talking about is the is. PJ JAM or Pennsylvania. New Jersey and Maryland that's the jurisdiction or the Independent System Operator that governs the wholesale market in the northeast For the most part where we certainly have power plants. There's a capacity market in addition to the price of electricity and the capacity market basically is designed to compensate generators raiders. That aren't necessarily making enough or all of their money. It's necessary to keep the power plants in place off the back of where the prices are. But that's it's designed to keep them there. In order to ensure the reliability of the system and the rules that govern the CAPAC- markets are incredibly complicated. There determine you know and and signed off on Firkh and you know we're we're at inflection. Point where how those prices get determined Especially in one of the subset except markets of PG am and that's the comment region which is out near Illinois. There's a lot of issues in doubt and I won't get into the details here. But suffice prices there are different outcomes there that affect what the future prices of capacity are and therefore the the future profitability of our plants in particular are plants in PG am for the most part earn most of their dollars off of capacity prices. There they aren't high. You know power generating plants. They're there to provide almost an insurance product and obviously the changes. That might take place you know from the Firkin the PG am where future capacity prices are concerned have an impact on that but is always the case as context matters. You know our four power plants in the midwestern part of PGM that comment region and this is publicly disclosed. You know earn about one hundred million dollars or about about five percent of our consolidated data. We believe they're strong reason to believe that the the outcome of where those capacity price changes will continue to be supportive word of a competitive markets. Which means good prospects for those prices? Continue to be as robust or nearly as robust as we've seen in the past. There are other outcomes where those prices might I believe less robust but we see no scenario where that is as draconian as even close to that entire hundred million dollars or five percent of our consolidate being get risk so you know it is fractional at best if you look at the the more conservative or draconian outcomes out of that process. So you know we're certainly mindful of it and and focused on his. Everyone is but in in the context of our. I think it's important to understand. You know what the order of magnitude might be the realm of the possible in in the totality of the Energy Enterprise. Yes Eh ties in nicely with what you said previously.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"This interview. Sure I'm well as I tend to think about it I'm GonNa Focus what seems like a little bit Around the power plant side of the business but it also has an impact certainly as it always does on the retail tell sided business and you know as with a lot of industries the primary Changes that we're continuing to see both operational industries you put. It are on the regulatory side of things I mentioned in the earlier part conversation. Power is deregulated. But that doesn't mean we don't have any regulation that overseas perceive that it is you know less than a traditional regulated utility as I mentioned the outset and the other one is the evolving pace of change from a technological. Oh standpoint and you know where those two things tend to intersect is really in. The area of renewable regulatory changes can either be environmental regulations nations which regulate the amount of emissions. You have is a power generator and we've seen some of that. The pace of that changes quite down currently with under the current administration But we have to prepare for obviously the future and the other one is even though we exist in you know deregulated markets the way in which those markets operate. Trade is still overseeing by a couple of jurisdictions one regionally and the other federally and that means you know the the different markets whether that's the northeast on the one hand or Texas on the other hand which tends to be our two biggest deregulated markets. Those are regulated by Both the states to a certain extent and also the interstate commerce part of that for wholesale electricity is regulated by the first The or the Federal Energy Regulatory Commission so both of those two two important changes have given rise to a couple of things in primarily. That's been the continued Acceleration of in particular were renewables. And we've seen some of that even in our biggest market and that's Texas and our our challenge in our opportunity is being is being responsive to that pace of change because it has an impact on the type of products we can offer our customers and it also has an impact on the price of electricity. It's always been meaningful. Maybe.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"Explain it because you do a really good job of explaining it but I guess that's also because you have so much practice took over my mouth. I we do get a lot of practice. Yeah so you know I would like to hear about just changes over the past twelve months or since in the last time you came to the podcast but you mentioned core competencies season. I would like to hear you. Just highlight what in our core competencies are sure and they speak directly to the two the pieces of our business which we tend to still externally the way I just did in response to your question have to talk about wholesale L. or power generation of a power plant side of the business on the one hand and the retail side of the business on the other hand but internally we tend to operate on a much more integrated basis. And if you think about it in a nutshell the input cost is hayward the efficiencies of all my plants. What is the fuel costs? And how much of that I can manage adage and fortunately those prices and costs relatively steady and what price am I charging on my end. Use customer everything that happens in the middle right between the wholesale business in in the retail. Business is really not as impactful to the bottom line of the performance of the business and as we often say you know we are source agnostic as to some years more of our profitability is going to be from what you call the retail business and less of it from the wholesale and other years the opposite is true but we're focused on delivering the bottom line performance of the consolidated later profitability and the core competencies. That allow us to do that are really twofold. I am one hundred percent confidence. We are best in class on the retail side of the business. First of all I mentioned before we were the first mover into the retail business. We have acquired retail businesses. That are complimentary. And we pursue a model where we market power complemented by other products and services to end use customers through what we call a multibrand multi channel strategy. We don't market everything under under reliant. We don't market everything just under energy. We have multiple brands that appeal to different consumers preferences as you would in any consumer product attic type business and through multiple channels right. We don't just solicit things over the phone with sometimes we sell door to door. Sometimes we generate a lot of customer leads leads through our relationships with the NFL. For example and Archie Stadium is where the Houston Texas place so we have multiple channels and multiple products through which to sell the retail side. And we are the best in the business in terms of how to manage that and how to serve our customers well rate our number one goal around in our g aside from safety which is always number one when she moved beyond that our number one operational goal is being customer focused. And I think we're the best in the business on that and I also believe because we have a breadth of experience in managing the power plant business. We operate power plants practically every fuel type. Whether that's nuclear coal oil natural gas asked renewables experience all of those different things and our operational excellence in managing those plants both safely and reliably is also best in class so so our core competencies are competitive advantages. Speak directly to what strength you have to have in order to manage effectively both sides of that total total value equation. Yeah thanks thanks for that now could you. Just you know it's been it's been more than twelve months but I'd like to hear if there are any important Jordan operational or industry changes. That have happened that you'd like to highlight or talk about during.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"A for many years and are G and a few other companies were known as the IP's The independent power producers. And I believe it was you guys at in. Rg who really started kicking off. Well you've created this new business business model which is an integrated power producer which really focuses on those elements that you just described. But I'm I'm curious how you know over over the past couple of years now. Have those conversations been going with investors. Is it hard for them to wrap their heads around what you guys are today. Compared to what you guys were before You know whatever it was twenty sixteen twenty fifteen. I mean you're the same company but it was this new message that you're getting out and I'm curious if it's hard for ED's investors to wrap their head around Yup what makes that challenging or investors are concerned are twofold number one you know in our G and other companies companies like it you know. We generate a significant amount of excess free cash flow. That's the cash that our business generates above and beyond what's necessary to kind of keep the existing business afloat if you will which gives us a lot of degrees of freedom and in the past we call that capital allocation. What are we going to do with those dollars? Those dollars those were invested in all sorts of different you know early stage evolving technologies and very difficult to get your head around the business model where the capital is going so that it was one challenge. We face that I think we've largely remediated in sort of refocusing on our core competencies which I'm happy to go into the other challenge about that. Is You know you mentioned mentioned. I P P or independent power producers and R G and companies like. It didn't start out in both the power and the retail business. We were simply in the power generation interrelation business and when that's the case as I mentioned in response to your earlier question since the price of electricity rise and falls with whatever the marginal cost most of the next megawatt that has to switch on in order to supply demand The wholesale price of electricity can be relatively volatile It tends to be the case that the what we call the marginal unit or the next megawatt of power plant that needs to turn on In the past and that's still largely true today. He tends to be a power plant. That's fueled by natural gas. And when that's the case that means the price that that power plant or the cost of that power plant to generate megawatt is simply what is the price of natural gas. And how many. BTU's of natural cast does that price does that power plant need in order to produce as a megawatt electric city which means that since the price of power is a derivative natural gas then the price of power rises and falls with natural gas prices. And you know there's also a supply and demand and a weather element of that obviously but it produces when you simpler in the power plant business A business that's very much commodity cyclical and I think. A lot of investors. Remember the days where the price of electricity rise and fall and so does also the profitability of the underlying company. What makes that different in? Today's world is we talked about retail. You know starting about two thousand nine. We were a first mover and beginning to acquire retail businesses. We've we've built up a retail franchise that especially within our core market and that's Texas. We are almost perfectly matched between the amount of megawatts power plants that we own on the one hand and the number of customers or or load and that's megawatt hours that we serve in that same market and while the underlying price of Electricity Chrissy can still rise and fall. The price to the end. Use.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"And starting to prove that we can monetize audit. Hi Sta player. Basically been accused o'clock. Thanks for that explanation. That's helpful. Could you talk just a little bit about the East sports ecosystem system and I know that one of the value propositions that I've seen some of your investor decks has been that Super League that they eh fill a gap within the east sports ecosystem that that is important and necessary and I would just love to hear what is what is that gap that you fill But first and foremost just what is the ecosystem with an e sports. So you know usually in or you know what you tend to have is you have The protein right. That's one big piece of ecosystem. You've got the game publishers. That's it's really the heart of the ecosystem because they're gonNA make the canes which means they only I t and then other types of stakeholders people who run tournament so often those are companies that are work for hire companies that you know maybe an activision pays to have the company takedown math and square garden and run and overwatch or call and duty tournament for them. You then have been news right there in that ecosystem as well and and many of the players themselves and Super League often look at ourselves and said really. If we're doing our job right where a true platform. We should have a relationship with all all of the different party so for the publisher the role that were playing. And you know they're running their professional league. We're all about Marketing to the base. So we're creating recreation or operationally that pass through the pros now. That doesn't mean we're pretending we're the minor league. They're probably because it's much more about social way right. You know I would attempt that. Hire us to run a Pudgy. Mobile Tournament we'll because what the gameboy listeners care about most is acquisition and retention. They wanted to get more people playing a and whoever plays it they WANNA play it as long as possible. Because that's how you mass my the baillieu about piece of Ip Running Leagues and tournaments creates more sticky nasty game titles. It helps you make more friends around it. You know if you are clain League of legends but all your buddies jumped aboard night. Well they're gonNA keep dragging you back before at night right. And so create those social connections and creating that stickiness the titles roll into pick the publisher for the protein. You know we have a lot of the pros or team owners on our cable. So you know big name traditional sports owners like Jeff Bennett and Peter Guber and others Well may directing something Super League and the reason is because if you're gonNA take about pro sports teams you you Kinda WanNa think about. How are we gonNA generate the future fan based on that team that send GonNa drive up franchise value ultimately no different than the kid in? La Who plays as little league is a high propensity to be dodgers fan. You know over time and so We thought a lot about our role to the to the protein when we look is any partner that was obviously cinemark another and then you were thirsty for new ways to bring a new traffic so their platform we can give them a whole fleet of offering for them to run their own types of tournament. Use our platform to bring gamers in their gameplay to run through our platform through their physical venues and then look at turn now. Where's it's really no different? I mean we have a slate of offering that people who WanNa rap tournaments can run if I would say well what's our role in the ecosystem ecosystem or when it comes to the game. I think that would probably wear brand really shines through the most the other thing that we saw we talk you trend right. We saw that. There's a democratization happening with competitive gaming. There's more think games are being introduced on mobile as well. It makes it highly accessible ninety. We need to move to PC to level up and a game like four nights but the fact that any teenager anywhere download fortnight for three on their song. You know that accessibility to competitive gaming is a huge key trend but the other kind of trend that we saw was that this notion of gamy being seen seen as something introverted young male you know I mentioned earlier Sunday. New Girl out we saw when we ran these events how diversity audiences tamers work we we index high on young adult women at our vets. And you ask the question ally and it's because our events have a really high standard on inclusivity ability and good sportsmanship and we pretty strong stand on that when we don't see that behavior well because there's so much bullying women in gaming when it's online all late we started started to kind of be the company that just for the better way to gain and then our job was to debunk. The Myth game was You know fifty percent of power hard gamers are married. Thirty percent of female gamers have higher average household incomes. They post graduation rates than traditional sports fan and well Over one hundred universities now in the United States offer eastport scholarship And so for us we started to really take a stand on not just the back of gamers wanted to come together by new ways to game in social around the gaming data but actually that the the strong Powerful majority of gamers wanted to gain and a healthy positive inclusively. Yeah I really appreciate that as somebody who has two little girls so thanks for that explanation. Yeah Yeah and if you think about it I mean gaining should be a level playing field right. I mean.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"That gives everyone a chance to hear public company. CEO's CFO's describe describe their business and provide the investment case for their company in this episode. The stock podcast is really excited to bring you an interview with an hand who's the CEO uh-huh of Super League gaming took her symbol s. l. g. g. when this interview is recorded superleague had a market cap of about twenty-three million no debt and cash on the balance sheet was about thirteen million putting the total enterprise value at about ten million. Now if you're like me you've never heard of Super League gaming. That's partly because I'm not a Gamer. But it's also a small company that doesn't get very much attention from the investment community but what an and Super League or creating is well. We talked about this a little bit but it's kind of like the Minor League for E. Sports and Super League is poised to capitalize on a really fast growing market. They provide a service that no one else really provides and they do it in a really unique and interesting way. It's a really interesting conversation. And if you know nothing thing about East sports then this is a great episode for you to listen to but before we get to the interview I asked you consider something for a moment. One of the goals of the stock podcast is to chip away at a key. Advantage vantage that institutional investors have over the average investor and one of those advantages is corporate access corporate accesses term used in professional investing which is basically the a chance to sit down with a senior management team from public company. You get to hear the investment story straight from the top and I wanted to give everyone the chance to hear these interviews because really the way the industry works is you have to have a ton of money or work for an institutional investor to have the opportunity to sit down with management and at least for institutional investors the reason why they they get to is because they pay big bucks to have access to management. But I'm giving this to you for free however there are still some tangible costs in running a podcast and not to mention the intangible opportunity costs for me for that reason I ask that you consider supporting the program and there are lots of different ways you can lend some support. Donations are certainly the most impactful. And if you'd like to make a contribution to the podcast just check out the donate page on the website at the stock podcast dot com. or You could subscribe either on the website or on the PODCAST APP that you use and another new way to support the podcast by going to the website and go to the episode page aged. And you'll see a red lines head in the SIDEBAR. That's a link to the brave browser and if you haven't heard about brave you really should look into it. Brave works six and looks just like chrome but there's a privacy element to it and the creators are trying to revolutionize digital advertising with digital currency called a basic attention token and if you click on the link download brave and then use it brave. Send some money my way and then finally you can support the show by spreading the word. Please take a moment moment to tell someone who you think. Might get something out of these types of interviews about this podcast really. It means a lot or mouth is the best form of advertising for podcasts. And it's a really easy way for you to support the program all right. I'll stop there. Let's get to the interview with Super League gaining. CEO Her Thank you so very much for coming onto the podcast. It's going to be great learning about your business absolutely happy to be here. Happy to have you and very happy to learn about your a business because it's just a very different business model for me so interested in that but before we get there. Could we just talk about your background a little bit. Where'd you come from? Yeah sure growth in the mid west ask the state kind of did what most people do out of college back. In those days my goal is to go work for a big company so I I started out with Mobile L. and then I moved on to McDonald's and eventually Went to be you know great training and made me sit in a lot of different functional types of roles all in the interest kind of grooming needs to be a generalist and at some point large. PNL owner so my last couple of jobs would be were in London. I ran global. Oh being deceived Business Unit liquefied gas that was Many countries around the world about a three billion dollar. PNL with about three thousand and then my last assignment there. I ran all of our global brands. So you know. BP owns a lot in their portfolio Arco AMT corral. There's all kinds of food can be brands and of course business to business brands as well. And then along the way about Eight or nine years ago. I met venture capitalists. They were coming and poaching executives from energy company. They put a lot of money cleantech and they were looking for people to to run. The businesses is and I think it just seemed exciting to me after all the time in large cap companies but I would get a chance to in some way do something that was very similar more to what my father did. He was a kind of Stereo entrepreneur. He was the first Franchisee ever. I've butters the restaurant chain and so I was used to being out how cold with somebody who was trying to start new businesses scale things that were small and so I jumped up and ran. I cleantech business in the bay area for about five years and then I knew some of the investors and you know early ambassador. Board members to release Super League was about six months old and and they were looking for the first to be very candid. I I was kind of a little bit nervous about it. Because while I could see the eastward space baseless blowing up and timing is everything and early stage companies And I certainly was a game or as a kid but I did at least at first blush I was a little worried. Ah maybe that it. Gains changed so much since I was a teenager and that struggle to understand the market space. But I will. I'll say that I was. I always felt I had really good instincts when it came to creating new ground or transforming them and the lure of the opportunity to not be highly relevant rapidly growing space but to define what really Powerful mainstream brands. You could look like around. That was just something that I could look away from. Yeah that's interesting. I didn't realize you came from. I take that back. I did realize that you came from energy but I didn't realize that you had some cleantech in your background as well and I don't know if you're familiar with any of the previous podcast episodes but I previously covered energy energia so we could probably talk about energy.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"Help maybe I'll regret some hair you know maybe maybe I'll have my say you know I think that's probably the biggest misconception of stem cells is that it's sort of Dr who are desperate they have maybe a maybe them or their child has some sort of condition that's non-curable like autism and you'll see a lot of clinics ever support that but the but but that kind of dialogue fuels a fantasy world of stem cells hello and welcome to the stockpiled investing podcast that delivers interviews with Public Company. CEO's CFO's now that's the overarching goal but the underlying goal is to educate an informed especially the investment community that sometimes means bringing guests under the program who are subject matter experts and this is one of those episodes this week's guest is Dr Matthew Lucas from the Santana Schultz clinic based out of Denver Colorado and what's interesting about the centennials clinic is that they were the first clinic in the world to use your body's own stem cells to treat orthopedic problems which makes it a real special treat to have Dr Lucas on the program to talk about Ortho bias logics I e stem cells and platelet rich plasma also known as PRP on the program to talk about the use of Ortho biologics in the ability in process just a little background as to why and how this interview came about I hurt my knee this past summer and it wasn't the first time that I heard particular knee but the pain was so bad this time around that I thought it was high time I got it looked at but before scheduling an appointment I did a little research which is maybe one of the worst things anyone like me who has a tendency for self-diagnosis could do but honestly I just can't pull myself away from Youtube when I think I can find clues or answers to problems there or at least physically which aren't that many really but fortunately I think I made the right choice I learned that on average most knee surgeries for something like a meniscus tear which is what I thought I had those surgeries don't yield very promising results I also came across it's a few videos that highlighted some success stories from this clinic cold Centeno Schultz which offers an alternative to surgery which is the last thing I wanted to do and then alternative is to use Ortho biologics such as against stem cells or PRP which I thought was really interesting so I set up an appointment I was super lucky to have the chance to meet Dr Lucas and during the diagnosis Dr Lucas asked me what I did for a living I told him podcasting he pulled a little bit because he speaks.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"CEO's CFO's I'm nate Abercrombie the host of the podcast and this is one of those episodes where you don't get to hear an interview with the CEO or CFO folks but that doesn't mean that this interview is any less valuable. I'm super honored to have Dr Joshua Landis back on the program to talk about the recent developments in the Middle East now. If you haven't listened to part one of this really short series I highly encourage you to do so and the first part of this series I talked talked to Mike Rothman so that's episode thirty eight and Mike Describes some of the important dynamics within the global oil market so we're talking about oil oil supply demand and well an extremely important aspect of oil markets which is spare capacity. It's a really interesting conversation and this conversation with Dr. Landis is highly complimentary because in it we talk about the geopolitical backdrop and some of the really important reasons sends why we saw what we saw back on September fourteenth when at least ten drones were flown into the largest oil processing facility in the world and that's the ABC cake processing facility and Saudi Arabia. Mike Rothman described APP cake is one of the most important pieces of real estate that you've never really heard of and this episode you get to hear Dr Landis describe the significance of ABC Ache and well the significance of the oil industry for Saudi Arabia and how that fits into the geopolitical puzzle that is the Middle East because it really is a puzzle before you get to the interview. I asked that you consider supporting the podcast. The stock podcast is a one man show and it's your support that makes this program possible. There are a lot of ways that you could lend some support. Donations donations are most welcome and most meaningful to me personally. All you have to do is check out the donate page on the website at the stock podcast dot com or you could become a patron on patriots so.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"Delivering low-cost energy to our customers keeping your interest rates low unaffordable important are operating company company credit metrics are all a rated and we issue debt somewhere in the neighborhood of seventy five to one hundred twenty five basis points over the ten or thirty year Treasury respectively ends up in net coupon somewhere in the three and have to four and a half percent interest expense so very low cost a debt relative to a lot of other sectors but it's important because we're a capital intensive business that we have a low cost debt to finance our operations. Yeah are most important credit read it metrics for generally of funds from operation divided by debt we look at the ratio of holding company debt to Total Company debt and we look at debt to eva and interest coverage metrics and so from evaluation perspective. What do you think the most important metrics for a utility starts with you know earnings earnings growth dividend yield dries relative ps? You weren't a shareholder but knowing what you know about the company. What would you pay the closest attention to if you were trying to get comfortable with an investment in excel stock? There's a couple of characteristics of highly investable regulated utilize listen I think about one is the management team are they capable of delivering outside returns year in in year out and executing on their communication in their plan X._l.. Energy we have met or beat our earnings guidance for the last fourteen years in in a row and I think that if you look at correlation you'll see that the ability to meet or exceed your earnings targets drives higher. P._e.'s than your peers. The second thing I'd look at is the quality of the capital plan equity could he investors are rewarded when the regulator utilities can invest capital at in grow their rate base at an affordable rate. If you have certainty that the management team can execute on the capital plan then you reward them for that capability and then finally I look at the regulatory jurisdictions in which they operate in and I look at the constructive or or non-constructive outcomes they have that it's just the company but other companies in their states have in their regulatory proceedings you take the combination of a management team a high quality capital plan and a regulatory framework in the states in which they operate in those tend and to be the areas that drive the best share price performance for regular utilities thank you I appreciate that and then my final question a funny story to to share with the listeners about an investor interaction or or or just like a sell side conference that you'd be willing to share funny story about one of our peer companies to tell you the name of the company because it's relevant to the story but when I was a young investment banker and Duke Energy was one of my most important clients and I would go down and see Duke Energy on a three or four times a year and talk about anything and everything under the sun one trip we are going down to see do energy and they wanted to talk about equity equity capital issuance so we decided we'd bring the head of Equity Capital Markets from the bank down to meet with Duke and we totally at this meeting with due date and that we meet him at the company because he was coming from a different location so we all fly in we get to the company and Terry's not there whereas the head of equity capital markets. We're GONNA have an equity conversation with one of the biggest utilities in the sector and our head of equity capital markets isn't there and we start calling him and he says while I'm here where you well he had landed in Raleigh Durham and went to Duke University because that's where his assistant folks his plane ticket. He said I need he told his assistant. I need to go to Duke and she booked tickets at Duke University. Ah So he's standing in the middle of the campus at Duke University we're sitting standing in the middle of Duke Energies campus which is in Charlotte one hundred seventy five miles away so we do the whole meeting via telephone. I like that well. Thank you very much for coming under the program. It's it's a pleasure talking to you and super interesting. I it was great to learn more about excel so thank you what's great to talk to an X._l.. Energy customer and someone who's an advocate for the company Anthony we appreciate the time to be out here in Denver <hes> talk to you and hopefully you know as your listeners may not be focused utility investors but as they wanna get smarter about the opportunity to make and preserve wealth by investing regulate utilities Tilles were. We're happy to have more dialogue with any and every investor that feels like we could be in investable security for them on thank you. I'm sure listeners appreciate that so thanks tombaugh appreciate it.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"We absolutely need technological advances. We need some form of dispatch. Generation wind and solar batteries tend to not be ready all the time with push-button start today that that need is being solved by nuclear plants coal plants in in natural gas fire plants in the future if you wanna be carbon-free were need some form of generation that either captures the carbon that admits so we call that C._C._S. or carbon capture and storage we could go to a next generation of nuclear not necessarily large-scale nuclear but the Department of Energy has been funding small modular reactor research for a long period of time we look at advanced geothermal or using the earth heat to to create combustion energy which is renewable any and all those technological advances and stuff that maybe around the horizon. That's what we need to go from eighty percent reduction by twenty thirty two carbon-free by twenty fifty so I personally because I used to work in the renewable energy industry. I have lots of questions that I can ask you about renewables but rather than ask you just specific. I how much does win cost today in Colorado or the questions that have specific answers. I I'd be curious whether or not you could share anything about what you're seeing today today. In the renewable energy industry that you think would be interesting for listeners to hear both from just a broader industry perspective but then also just more specific to excel the most impressive trend that I've seen in the last S. five years in renewable energy is the continued advancement of technology the challenge that we still have as an industry is that the wind doesn't always blow in the sun doesn't always shine in the amount of storage that we think we need bridge. Those gaps is a substantial amount of cost real estate metallurgical science etc that is going to be challenging to bridge the goal of what I'd call one hundred percent renewable to you carbon-free. We do believe there needs to be some form of generation that can bridge that period. It's not a huge period time ten or fifteen percent of the time where the wind in the sun aren't necessarily there in in the battery storage or some form of storage aren't sufficient to make up the difference yeah the cost curves in the capital cost curve continue to impress me and others who watch that the equipment manufacturers can continue to advance the technology and wind farms and solar panels such at the end cost of the customer is increasingly affordable in competitive today we have significant tax credits that support the implementation or the installation of renewable generation assets in the future. Those tax credits are expected expire and when we talked to equipment manufacturers they increasingly believe they'll be able to keep up with the declining cost curve her such that the tax credit son said is less impactful to the customers and we think we'll be able to continue to deliver renewable energies to our customers at a cost effective rate yeah. It's interesting you mentioned one hundred absent renewables versus zero carbon emissions so there's clearly a distinction there and maybe I I honestly think this is maybe a character misconception within within the industry in for everybody when they think one hundred percent renewables yet maybe they're getting hundred percent wind or solar because of the wrecks but when you say one hundred percent carbon-free you're talking about not needing the fossil fuel sort of backup ready ready to start at a moment's notice type of assets that are required to fill the gap whenever the wind's not blowing the soul in the sun's shining. Is that correct. I think any individual customer can probably be off off the grid or one hundred percent renewable. What's hard is the whole grid at some point needs its ability to recharge itself and our insights into that science would suggest that the the amount of storage capacity that you would need to keep the grid sp reliable in sustainable is so significant that you would make that kind of investment in the short term the difference between one hundred percent renewable and carbon free is being filled by assets like hydroelectric power or nuclear power which are not a meeting resources but are also not considered renewable resources either and the future we need to replace replace some of the stuff that's provided by nuclear with dispatch nominating resources and whether that's small modular reactors whether that's geothermal whether it's natural gas fire plants that carbon capture on the back end end any and all those are potential solutions to the gap that we see that batteries can't make up as a but at the same time I've I've also seen that storage is something that excel is very interested in investing in and from what I understand it's going to be regulated utilities? The big utilities like yourselves that are the ones that essentially pushed the cost curve down lower because you're going to be buying the battery installations that will then enable manufacturers offers to increase production capacity etc but could you talk about storage how you're thinking about storage today and the role that it will play <hes> at least in Colorado because I think the article that I had seen with specific to Colorado energy storage the commission wanting to see a lot more investment in storage. We think storage is going to be increasingly important part of our energy makes it plays a significant role in elongating beating the daily solar patterns it will help with voltage frequency modulation on our grids. The limitation that we see in storage today is the ability put enough energy in storage for not one hour two hours or three hours hours when you're trying to elongate the solar curve but it's trying to extend solar across one two or three days where the sun isn't really shining sufficiently in the win isn't blowing sufficiently and we still need to power the Colorado economy life or the Minnesota economy as we think about our ability to keep the grid energized. We feel like they're our time periods in the year. We could see this in history. There are times when the wind doesn't blow in the sun doesn't shine in the amount of storage capacity that we would need to satisfy that need for not an hour to we're talking about days where we have low solar and low wind output concurrently where the amount of storage would be substantial. Do you have just sort of a ballpark estimate on how much stored you would need today based on the amount of wind and solar that you have in the fleet. We'll take Colorado. Colorado is a a six thousand megawatts sixty five hundred peak system that this is our business in Colorado all of Colorado okay. If The Sun China wind blow you need six thousand megawatts for war is probably average load of <unk> three thousand for two or three days. Yeah it would be a stunning amount of battery. We do the math we could put a say it take the the entire eastern slope or you know ten county area of battery dedicate. I mean it's an enormous number enormous so I appreciate that it's <hes> it's why we we'd say we need technology to give two zero. Is there's a small piece. It's not a lot ten fifteen percent. Dispatch will jen can charge those charged the batteries in and help with that equation when the wind is blowing less than the sun's shining less yeah a lot. It's a little which is why you can go off the grid and I can go off the grid. Paul can go off the grid but susie over there can't off the real like we need. Someone one is generating with controls to charge our batteries when our solar panels don't work yeah so it had been likes to say the small grade can be carbon-free but the big rig can't that makes sense. Could you just talk about the demand trends that you're seeing in Colorado and how how has the marijuana industry how has electric vehicles and how as you know just sort of an I. I've been talking to one of your employees who is also on the board of R._T._D.. The Regional Trans Transportation district so it's basically public transportation here in Denver and and and he's he he finds this subject subject be very interesting as well as the public transportation sort of a demand component as well but could you just talk about not just Colorado but just in all of your footprints characterized demand trends we operate utilities in states that have good growth and generally means that our population in those states is also going to grow maybe above the national average so when I think about demand and energy utilization we take the product of the number of customers that are coming into our system which gets offset by increasingly our customers are more and more energy-efficient S- all of those appliances are coming at you know low higher seer ratings higher efficiency ratings for new appliances. Nuhu housing stock is all being built to better energy efficiency standards so as we see customer growth we're seeing equal offsetting declines in US per customer which means that our energy both on a gas and on electric side have been generally flat and we expect them to be flat to maybe slightly increasing over the next five years trends that change that over time certainly electric vehicles is the single largest driver river of potential future demand. Today I saw stat that we probably have twenty thousand electric vehicles and our service territory today we expect two million by 2035 that will grow electric demand by about thirty to forty basis basis points per year so not a ton but over time it very significant portion of electric demand ago interestingly when you think about electric vehicles you can fill up your electric vehicle for about a dollar a gallon equivalent on our electricity price versus gasoline prices about a dollar a gallon and that comes at a one third lower emissions profile today and by twenty thirty five. We're talking about an eight of the emissions profile of gasoline yeah well as impressive so it's a big emissions profile driver if we can increase electric vehicle penetration yeah. I am curious though just because my my last interview was a California based marijuana company how has marijuana driven demand in Colorado hasn't been a big driver. Colorado was one of the first dates to legalize recreational use marijuana in what we saw is. An increase in electric utilization by the grow houses that were going to grow marijuana in distribute marijuana in the state yeah I'd say over the course of the last five years we've seen electric demand in Colorado grow about one percent in total hodel over five year period from the marijuana industry yeah and what about public transportation and you know I I read an article awhile back about Kansas City to Colorado is one of the places that they're considering putting the hyperloop and obviously hyperloop would require enormous amounts of electricity not assuming that you've read this article but as public transportation big driver for for for utilities in terms of I mean the Light Rail here her and I don't know about Minneapolis but public transportation here at least consumes electricity so is that a driver we see a significant amount of interest in our municipalities in the bus systems that support those municipalities in terms of electric electric demand. We're talking to most of our largest cities that are service territories about their goals in their emissions reduction goals and while a lot of them may have converted from gasoline buses to natural gas fleets twenty plus years ago they're now looking at the next generation of buses being electric we certainly support them and we want to help them with charging station infrastructure and that's an additional source of energy demand in growth. It's obviously a source of emissions missions reduction for cities and states and they're very focused on what they can control in that something that's one of the largest arrows in their quiver around what they can control yeah. They want to buy power for us that is low.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"To grow E._p._S. and to to grow the dividend? Could you first of all. Do you get that question very often from investors generalist investors about free cash flow and how do you respond to those investors. I understand conceptually portfolio managers and analysts wanting understand the free cash flow of any asset or any business for regulated utilities. We are a little different I think of total shareholder return as the combination of earnings growth and dividend growth in the absence of investing in growing rate base. We're not GONNA have earnings growth or sufficient earnings growth and therefore are dividend growth will suffer today as a company. Our earnings earnings growth profile is five to seven percent E._p._S.. Annual growth we have rate base growth. That's in that same area so we're growing rate base effectively the same rate or slightly below the rate of earnings growth and we expect our dividend to grow at or above our earnings profile utility investor. I'm looking at the certainty of the dividend in the dividend growth rate is I think about dividend cash flow models valuing stocks the shorthand valuing doing utilities is often a p._e.. Ratio because utilities generally have similar capital structures P.. E. IS A very effective way to measure relative valuation of utilities the other one I look at what is total enterprise value to rate base rate basis. The earnings power of a utility in growing rate based grows earnings in so inbetween periodic rape cases. You may have somewhat lower E._p._s. but the earnings power is how much invested capital do does utility having the ground and how much return to they need on that invested capital serrate basis is a mechanism by which we look at the earnings power over long term of regulate utility and and what what are the sort of a range of allowed returns right now that you're seeing today and how to how is that compared to call it ten years ago or fifteen years ago and how you thinking about returns going forward recent regulatory rape cases around the country probably center on return on equity in the mid nine to hide nine are always so nine point five to ten percent Ara we that number has come down over the last five to ten in years is interest rates have come down returns on allowed return on equity follow generally follow thirty year U._S.. Treasury in some spread to that number so as the treasury rates or corporate bond rates have come down regulated utility are are always have also come down and as interest rates go back up allowed returns will also go back up as interest rates have been lower the last ten years. I'd say that the regulated are always were slower to you. Come down and match that and our expectation as rates potentially rise in the future that the allowed are always regularly tilles would probably lag a bit there as well with slightly lower always and some other utilities in the country in are always always may have come down faster over the last five years than some of our peers that it's likely that are always should rise a little bit faster as rates come up as well and that's just a function of how are always are determined determined in the different regulatory footprints. Is that a good way to sort of think about things. Every state has a regulatory commission that helps set rates and as part of that rate-setting process they determine what your return on equity you're allowed. Return equity should be and depending on that regulatory body you could end up with a twenty five or thirty or forty basis point differential in allowed are always based on how the commission looks at at the theoretical way to set a forward-looking Ara. We are commissions for whatever reason over time have have trended to the lower end of that spectrum and therefore the companies have lower are awaiting some of our our peers that may have caused some earnings pressures in the past but we also expect to have those rise back to median or above faster than some of the other utilities as well yeah and I read something just the other day about performance format based rates and that's something that you guys have exposure to in Minnesota well could have exposure to because apparently they're still trying to figure out how it works for the process. Is that something or performance based rates something that excel wants to have. I don't think performance based rate making is necessarily new in fact we have performance based programs inside of our rate structures today as I think about our energy efficiency and conservation survey Shin programs where we spend money to incent our customers to use less of our product and if we are successful at that we earn an incentive on the amount of energy efficiency that we can promote amongst our customers tumors commissions are thinking through how do I in sent excellent behavior. And how do I reward that in so if performance base rate making is done well then I think there's a great opportunity attended benefit our customers as well as shareholders and all of our stakeholders in our companies so so yes so you mentioned growth drivers. Could you just talk about where excel is focusing. Its investments today and I. I think this would also be a really good segue into your goal of of of cutting carbon emissions two zero by.
"cfo" Discussed on The Stock Podcast | CEO and CFO Interviews
"There's a lot of different ways that you can support the W._b.. PODCAST so without further ado let's get to the interview with Eaton Enterprises Darren Cotija Darren Ritchie. Thank you very much for joining the podcast. Thank you for having <hes> it's a pleasure and <hes> and so I I would like to hear just a little bit about your background. Obviously I know a little bit given the fact that we used to work together but I'd love to hear just kind of how you got into the business now it. It's been kind of an interesting. Have you know I had an affiliation with the plant. I was in college <hes> like I think a lot of people do <hes> having guns blown main went to Bowdoin. <hes> you know I think back then probably social now the minimal in cash crop. I I haven't seen the officials dads but I'm willing to believe that <hes> that it's probably cannabis and I started my experience there just as as a as a person that was experimenting in doing that <hes> obviously you know having worked on I graduated in the late nineties. I worked on Wall Street for roughly twenty years old on the buy side and sell side of these your journalists. <hes> you know falling only in Russian oil companies shipping companies to you know my first job at a school was actually at a hedge fund call covering retail gaming in logic <hes> as a glorified go for senior analyst so I've had a a wide range range of experience there and frankly when you when you're heading down that path you know by kind of moved away from Canada's awhile just because it wasn't part of the kind of the culture of being New York City and doing that to the same degree that it was <hes> being college edge in two thousand sixteen decided to leave the equities business. That's a much longer discussion about why but I think the the advent and the rise of E._T._f.. Lounge versus actively manage money and what's happening to be structures pictures and just the business in general <hes> I just I just saw better opportunities elsewhere so I looked around initially thinking I was going to be in the startup. World may be on the East Coast <hes> and decided to kind of come to the hotbed of of start of activity in in California. I came here. I was very briefly a seat in the C._F._O.. A rideshare company but like many startups you can kind of tell things are going to work or not on a soon in the end of the process. I decided that <hes> you know wishing everybody the best that <hes> I definitely needed to to take a different a different move interestingly. One of the one of the Advisor Board members was a guy that basically built the north face and so I was recruited out and was working on raising raising a of the coupon for basically lifestyle brands and the rest with him <hes> and while that happened I came across and that the people here at <hes> you'd enterprises and I just thought this is an amazing opportunity. There's very few times you can get involved in a business and its genesis phase where you know. There's very few people that look like me and act like I know Kinda with my background is as well. I'm going to here where you can really maybe impact the evolution of business and you know what's fascinating is i. I came out here. Thinking about start ups. The one thing that this this sort of start up business or start a industry has is already a pretty active in large install base of users so I you know obviously jumped in <hes>. I've I've been the C._F._O.. I joined in June of last year and <hes> no it's been it's been fun. Basically you know putting the other company and you know getting no a new business and that's you know I've been learning as much as I've been doing. I've got all yeah absolutely and I think I noticed that your at least your title was you. Are you also interim C._E._O.. No I think that's accurate. <hes> I kinda to to make sure I kinda work under the moniker of chief financial officer I but yes I mean there is a kind of a multi capacity <hes> but the the company basically the way it runs is there's three or four person board <hes>. I'm one of those three people <hes> most the <unk> strategic decisions are made at the boy bubble <hes> and then implemented down the chain. I think okay so. Could you talk just a little bit about or at least provide us with a little history of the cannabis industry in in California. So you know obviously it's different in every state. I'm here in Colorado and it's been legal for a few years. What what's the history in California was it was a medical first and then available for recreational personal use as well yeah basically in I think it was nineteen? ninety-six <hes> they pass the Compassionate Care Act and that was basically when everybody got their medical cards and you use for medical purposes and beginning of Janelle San Juan of two thousand eighteen recreation US game online was obviously it was voted in. I think it was prop sixty four <hes> in two thousand sixteen at the turn the law here there's always a lag between none of the vote to do something in the execution because there needs to he kind of role making an implementation but then but that's now you know two thousand eighteen with a lot a lot of the implementation of the new regulation rules and all the rest and frankly they continue to evolve and part of a you now eatings mission is to make sure that we're part of that dialogue and helping that happen because I do think it is a partnership between the government the state government the municipalities and the industry to make sure that things are put in place in the rules are put in place is that are you know mantelpiece mandible really effective though to what people are trying to do you want. Obviously you know have cannabis in the hands of you know people of age and you WanNa make sure that it's US responsibly yeah yeah and and how has it just sort of the the the laws and the rules. How have they changed in California over the past several years? I mean had there what what is the market structure like and what are the rules around the cannabis industry in California and how have they changed. It's a great question. Question and it's also a very dynamic one in terms of you can have to answer it so I joined last June and it's been it's been a steep learning curve coming up learning about son of though the regulations that different bodies really comes down to any operation you have requires permiting and licensing from from the state level all the way down to the local level and so like if you think about the dispenser business that's one of our businesses were and so going going in there. We have licenses to operate in relocations. We have one that's one that's open and operational but even as we look at expanding our footprint. That's that goes on a town by down basis. I I've gone to a number of local. Ah You know to local municipality meetings where there's a moratorium on allowing you know dispensary to be there mainly because I think that they wanted to see how the rules play it out and how these things men is and there's a social stigma to you thinking that type of person that's going to be in a dispensary as a certain looker profile. Maybe they're dangerous. Whatever the nefarious aspect of kind of our wagon C. View on the industry and and people that use cannabis you know whatever that is people's heads but you know I've actually sat in there was one meeting I went to and I'll leave the town out of it but you know I went to the meeting and the person who was the head of the Republican Party or that county even though he was only on the fourth of the town you know I went and I talked to them afterward? I made sure I introduced myself and you had this the head of the Republican party but you think kind of philosophically with against cannabis anyway he'd actually flipped so to look at a different way because what's happened is is that a lot of these people that are regulating or on the local government level or going to visit dispensaries and they're looking allowed if they're rising. It's just everyday people it's not some safari as bad sub section of the population. There's just there's a lot of people old that consume cannabis for any litany of reasons whether that's recreational whether it's medicinal or or you know however they want to do it and so I think once you go and you come to our dispensary in our Garden of Eden you call them we just remodeled it and reopened it. In September of last year I mean the places immaculate the people behind the counters or knowledgeable clean you know well-dressed present well or you show up. There's a smile on their face. There's nobody anti-smoking any cannabis or anything like that on the Francis and it looks like any other store that you go to so I think you have an evolution. That's happened cycle like the the psychological part of your answer. That's what's happening across the state as the rules kind of formalized now Miki going very very long conversation about all the little knits nips and tucks around all the different roles whether it's around packaging labeling or it's on making sure that you're you're meeting certain Standards Anders on how things are transported or whatever the case may be and those are all things that sort of come online <hes> overtime and that's one of the difficult things on the on the players in the industry is as they change it requires investment than requires this transition right so where I'm hoping that the the law of the laws are started in the rules kind of that underlying the laws are starting to sort of coalesce and cement themselves 'cause it's. That's the one thing that's a very big bird on the industry that you constantly have changing king kind of rules that underlines underlie the law you know everybody wants to be compliant. That's that's that's made that effort so you know kind of making it easier for us to do that. As always something that's that would be appreciated. I think two thousand eighteen and a lot to do with with kind of solidifying this regulations in wolves but at the same time you know the tax regime is still going to be evolving bowl with local state and every other level I think that the cost of compliant and and part of the rules and the cost of you know just the the taxes on canvas which frankly also will pass onto customers were high and unfortunately I think by being kind of high and out of the gate or at least perceived besides that's why there's still a pretty active black market in California and so you know one man so by maybe maybe I shouldn't even say I'm speaking on behalf of eating and this but maybe down so is that you know we figure out kind of the right balance there to make sure that everybody comes into compliant market because I think it's just good for it's good for everybody. I mean those definitely you know I think I think there's a lot of great purposes but again it should be used by the right people in responsibly so making sure that you have regulations in place to do that. That people are complying onto is really important so kind of scaling the taxi in the right way to make sure you bring more people into that fold. I think would be great yeah so could you talk just a little bit about specifically about Garden of Eden..