Rene Haas (3:41)

Good morning, Caroline. And I'm in San Jose, not San Diego, but that's okay. You know, in terms of the overall market and the quarter we are, we could not be happier in terms of the results that we had this last quarter. It was $1.5 billion in that neighborhood of revenue which not long ago used to be an annual revenue number for, for the company. Our datacenter business doubled year on year and we're seeing, you know, huge, huge demand for our new product, the, the ARM AGI cpu. So all of that has really added up to a terrific quarter to your question as far as smartphones. We have definitely seen a slowdown there as well. However, I would say compared to some of the other folks in the market, we're not really as exposed there probably for two big reasons. Number one, a lot of our volume comes from the premium segment where the royalty rates are quite rich using version 9. And where the slowdown has taken place we've seen is mostly in the, in the lower end of the market where there's not a large royalty contribution for us.

Caroline Hyde (4:41)

Okay. So not a large royalty perspective coming from the smartphones, but where the dictation of growth seems to be coming from is cpu. Not only CPU architecture that is used broadly by you name check, the Google's, the Amazons the way in which we're seeing CPU further grow, grow in your customers, but also you're building the chip yourself. How do you see that market expanding?

Rene Haas (5:03)

Yeah, we are. And you know, for 35 years, the way we delivered product to our customers was through, through ip, the blueprint that they use to essentially build chips based upon the ARM technology. As you know very well, we've seen huge growth in our data center business over the last number of years. Amazon with Graviton, it just announced version 5, Graviton 5, Google Axion, Microsoft Cobalt, and of course Nvidia with Ve. But what we've seen, Caroline, you know, in the last number of months has been this explosion of demand for agentic workloads. And agentic workloads essentially mean that agents are now putting queries on the data center that need to have answers back very quickly. All of that work regarding the agentic management, orchestration scheduling, etc. That is the kind of work only a CPU can do. Only a cpu. This is not something accelerated GPU can manage. So what's happening? Demand for CPUs is exploding. And the timing of the Army GI CPU launch I think just reinforced huge demand for that kind of product. So we are now seeing demand for not only the IP that people are used to build chips based on ARM in the data center, but the ARM AGI cpu. And I think I mentioned on the call we had visibility to about $1 billion of orders that we had. In our forecast, that number over the last five weeks has doubled to $2 billion. So demand is certainly not a problem.

Caroline Hyde (6:27)

Extraordinary since you first announced the move towards building it yourself, towards the what we see as this focus on this particular cpu. But where from? We know that Matter has been a key partner on this, but where else are you getting demand from, Rene?

Rene Haas (6:45)

Yes. So the partners we talked about at launch was Metta, of course, OpenAI, a large partner, Cerebras, SK Telecom, Rebellions, SAP. So it's pretty broad, F5 Networks. We're seeing it across network infrastructure largely around Simply putting more CPUs inside the data center. The other thing that we did, Caroline, with this product is when you're building something of this nature, it's not just a chip, but it's a system. And we work closely with partners like Supermicro and Lenovo and Asrock who build the systems in racks that customers can order and these 36 kilowatt air cooled racks. One of the beauties of the ARM AGI CPU is that you can get twice the performance in the same power versus the comparable x86 rack. So. And of course we're known for power efficiency, so that's not a surprise. But it is one of the other things that's catalyzing demand.

Caroline Hyde (7:41)

We've got to talk a little bit about supply. You're talking about how you're built, making sure that the, the servers are there, the way in which we can put them in the data centers as they're the partners you're working with. But time and time again, we're hearing from everyone that the blocker really isn't demand, it's supply. Have you had any issues with that?

Rene Haas (7:57)

Yeah. So what we said on the earnings call was the billion dollars of orders that we talked about, we have the supply for that. Now what we have is additional demand for another billion dollars of demand product, and that is bringing it to a total of $2 billion. And we're working with everybody in the supply chain, whether it's tsmc, the memory suppliers, sk, Hynix, Micron and Samsung. But the beauty of all this, Caroline, is that this is not perishable demand. It's not something that if a window closes, there's not going to be a need for compute. So we are this in the long game. We've talked about a $15 billion target by FYE 31. So that's calendar 34 for your viewers. And basically what that means is we are very confident that we are on track to that $15 billion number in a very, very short time, which is quite transformational for the company relative to the size of opportunity and the amount of revenue that will deliver.

Caroline Hyde (8:53)

Size of opportunities, size of role for you. Rene has been expanding because you're still CEO of ARM, but you're also taking on leading the SoftBank International part of the business. And this is all about working with other parts of SoftBank's ecosystem in the chip arena. I just think of some of the acquisitions Ampere has been put into the portfolio. You've got Graph Core. How do you see your role changing? How do you see the impact of SoftBank more broadly in the chip space?

Rene Haas (9:21)

Yeah, thank you for the question. There's a lot of synergy to the kind of work that SoftBank is doing. When you think about some of the announcements they've made recently around in Portsmouth, Ohio, for example, a huge 10 gigawatt data center facility, working with the US Department of Energy as well as SoftBank Energy. And then we've got companies in the Softbank portfolio like Ampere and Graph Core. A lot of synergy between the kind of work they're doing that could fit into arm. So Masa has asked me to help with that orchestra, administration and that coordination across the companies. So in one extent, yeah, it may look like, oh my gosh, he's got two jobs. But on the flip side, there is a lot of coordination that we get benefit from both sides. So I'm happy to help in any way that I can.

Caroline Hyde (10:08)

And from San Jose and from wherever else you are in the world, as we know Harm is UK based as well. We so appreciate you joining today. ARM CEO Rene has on the back of our numbers. Now let's talk about where all of this data center demand comes from. And it keeps picking up. Anthropic has struck a deal with Elon Musk's Space X, giving the Claude maker access to computing resources at a massive Space X DataCenter known as Colossus 1. For more, Bloomberg editor Seth Figgman joins us now. They're competitors, right? Because it's not Space X, it's Xi that is now part of space.

Seth Figgman (10:41)

It's a bit of an odd bedfellow situation here. Elon Musk has been critical of Anthropic before. Obviously they're both competing to build more powerful AI models, but they do both tend to benefit here. Anthropic has said repeatedly that their demand has surged in the last few months and we've kind of felt that covering this company and they need computing, they need it now. And Elon Musk's data center is operational. It's not a theoretical multi gigawatt facility three years down the road. But Elon Musk's venture, meanwhile, they need revenue there. You know, Face actually is planning to go public imminently and Xi's Grok is not really getting that much business or as much business as they might like. So here's a great way to supplement

Caroline Hyde (11:17)

their revenue because actually there's an awful lot of capacity that's not being used at closest one, right?

Seth Figgman (11:22)

That's right. So there's hundreds of megawatts there. I think 300 megawatts is what Anthropic has agreed to lease here. And again, this may not be a 5 gigawatt deal on the scale that we sometimes report on, but it's available now and I think that's the key differentiator.

Caroline Hyde (11:35)

There's also talk of, I'm sure, orbital data centers. I mean still the CEO of Anthropic, Dario, like speaking into that eventual moonshot

Seth Figgman (11:44)

that's also on the 2026. But yes, anthropic is saying they will work with Space X or Space X, whatever they're calling themselves now, multi gigawatts of orbital data center capacity. This does not exist today, but Elon has certainly said it's a priority for his merged company.

Caroline Hyde (11:59)

What does exist today is rivalry between elon Musk and OpenAI. Many would say of what we're seeing playing out in court right now. What did Elon Musk say about his desire to allow Claude and Anthropic to continue to grow using his own architecture?

Seth Figgman (12:13)

There's certainly that element of the agony of my agami, you know. But he said, Elon said he went and visited senior staff at Anthropic last week and decided they're not evil and

Caroline Hyde (12:23)

that the senior staff, some of his staff, like people, have been leaving Anthropo.

Seth Figgman (12:28)

Yes, but he has previously alleged that Anthropic is evil or that they're misanthropic or any other term here. But he's decided that clog can be a force for good. But he's also indicating if that changes, he could just cut this deal and change things around.

Caroline Hyde (12:42)

Well, it's a deal that's cut so far and seemingly a win win among frenemies. Seth bigger man, as always with all the inside track when it comes to AI and compute. Meanwhile, coming up, we're going to the world of quantum Iron Q. CEO Nicola demasi is joining us. They post their first quarter revenue. It was a beat. It was a raise the shares down. This is bring back tech.

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Caroline Hyde (15:01)

business, it may not automatically fit the way your business works. At IBM we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by

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millions, slashed repetitive tasks and freed thousands

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of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM. As the clock ticks down on its acquisition by Paramount one my of brothers Discovery reported a deeper than expected loss in the first quarter. Shares you see just up about a tenth of a percent. We dig into the details of Bloomberg's Hannah Miller. The loss is because they owe Paramount, right? This is all tied up with the amount that was given to Netflix.

Hannah Miller (15:53)

Yes, it's definitely an anomaly. So basically, even though Paramount has already paid that $2.8 billion termination fee to Netflix, there are circumstances where Warner Brothers would have to refund them. They would be unusual circumstances, but Warner Brothers still has to report that and still have it on its books.

Caroline Hyde (16:12)

Otherwise though, if you strip that out, going to the actual fundamental fundamentals of the business, how are they doing in terms of content creation? How are they doing in terms of streaming?

Hannah Miller (16:22)

Yeah, so we've seen success on the streaming side though they are not reporting their specific subscriber counts. They're following in the footsteps of Netflix and Disney, but they are on track to reach their goal of having more than 150 million subscribers subscribers by the end of this year. We also saw some strength in streaming. They had some hit shows, season two of the Pit, A Night of the Seven Kingdoms and yeah, their studios revenue looked good as a result.

Caroline Hyde (16:50)

What about the UK and international growth? They launched there right in late Q1

Hannah Miller (16:56)

yeah, this global expansion of their streaming platform plays a lot into their goal of having, you know, tons of streamers around, streaming subscribers around the world. So, you know, this is all part of their strategy. They are a very international company so it makes sense for them to just keep expanding abroad.

Caroline Hyde (17:14)

I mean, while we just keep all eyes on how the deal progresses. Hannah Miller, we so appreciate you. Thank you. On the back of Warner Brothers Discoveries earnings, there's more earnings this time. We're focusing in on Quantum IonQ. Look, shares are down some 5.75%. But the quantum computing company posted first quarter revenue that beat expectations. They had higher than expected second quarter outlook. In fact they raised the full year guidance. Nicola Damasi is with us IQ CEO. So maybe profit taking, maybe just appetite from investors is so excited when it comes to Quantum. Do you think that's what's putting some pressure on the stock today?

Nicola Damasi (17:46)

You know, look, my job is to run the business as best as one can. We're up probably 70% from this time last year and at the end of the day I think that we have tremendously great access to capital. We're executing well and we're demonstrating that Quantum has got this fantastic strategic and financial inflection point. Right. So we just uplifted guidance for the full year to be more than double last year's revenue at the high end. We tripled revenue last year. We're the first seven, eight and the nine figure revenue Quantum company in history. I want to be the first to 10 figures of revenue. That's, that's the goal right now.

Caroline Hyde (18:18)

Well, the goal longer term is for fault tolerant quantum computing. It's to get to 80,000 logical qubits. The milestone you've got 256. Why is that a milestone? Why is that an inflection point?

Nicola Damasi (18:31)

Well, yeah, we launched actually the world's first fully sort of shovel ready blueprint for fault tolerant computing last week as well. We call it the walking cat architecture. And the 2v6 chip is actually our movement to this architecture that we published and have obviously protected and patented before we did. So it's a truly groundbreaking design that I think will be in textbooks and history books, I'm guessing in the coming decades. Because it's modular and scalable and it takes advantage of what we call all to all communication through this concept of sort of Bell quantum teleportation if you will, within the chip, which is super cool. But if you're a quantum mechanics geek, you'll know what we're referring to. And so our Systems allow us to build more and more powerful individual computers. But also the modularity means that we can build data center size arrays as well. And so what I like to remind people is we're very much in the process of building the most powerful ecosystem in the quantum space. It's not just computing, it's networking, sensing and security. All of these business lines were growing and we talked about on the earnings call just Yesterday, we beat Q1 revenue guidance by about 30%. We talked about the fact that, that the whole portfolio is growing, we're growing internationally, it's about a third of our revenue, but a third of our customers are taking more than one product from us. So there's a lot of quantum networks, quantum computers that we're seeing demand for and hybrid data centers as well.

Caroline Hyde (19:54)

And that is why you want, and you say you want to be the Nvidia of quantum. Is that in the way? Look, we're not going to compare like for like revenues are still way off what Nvidia is currently bringing. But you know, you've got to start somewhere and in that regard respect is it just you want to own the whole pie. The fact that you are going to be in charge of a lot of part of the ecosystem is where the Nvidia sort of comparison comes.

Nicola Damasi (20:15)

Look, I'm a huge fan of Jensen, you know, Hero for anyone I think to be honest, you know, tenacity and building a business over the last couple of decades we're going to do exactly the same thing. We've been at it 30 years. We built the world's first quantum logic 8 in 95. Now we've built, you know, delivered the first blueprint for full fault tolerant machines and we're demonstrating all, all aspects of that architecture. So it's just engineering from here on out as we turn the handle and scale. But yes, we want to make sure that people learn on our architecture, stay in architecture, change the world on our architecture and all aspects of applied science, material science, pharma, defense, intelligence, logistics, chemistry and so on. But we're going to be an open ecosystem. So we work with Microsoft, Google, Amazon, et cetera. We will plug into everyone's software stack. But in the day we want to it all to, to be sort of residing on our, on our hardware. And so we, we, we want to keep control of the critical pieces of the software and hardware stack and the algorithm stack as we scale.

Caroline Hyde (21:10)

You're not the only one in the race. And when I think about Fujitsu for example, what others are doing elsewhere, who's who are you seeing in your peripheral vision? Where are you seeing competition coming for what you're building?

Nicola Damasi (21:21)

Well, I think we're quite unique in the sense that we've not always, not only always had a technical lead, but we now have a manufacturability and a robustness that's really grabbing people's attention. Right. So I talked about technology readiness levels on the earnings call last night and how our quantum sensors are on submarines up to, you know, spacecraft. And we're thinking about the full quantum platform as something we want to deliver to the warfighter in all war fighting domains. But also that indicates the level of reliability and robustness at our enterprise customers can benefit from.

Seth Figgman (21:54)

Right.

Nicola Damasi (21:54)

So sensors have very high, what's called technology readiness levels by the military. Our quantum networks are also deployed quite high levels of trl. Quantum computers are very much, you know, growing, catching up, evolving very quickly and we're having to trade off to some extent, you know, how much do you harden the current generation to work on the next generation? But we're doing all that in parallel and we continue to invest in our manufacturing capacity because we've talked in the last two earnings calls about the fact that demand really has been coming towards us and they've been coming to where our product portfolio is and so we're growing our manufacturing footprint across the whole product family to meet that demand.

Caroline Hyde (22:32)

You've articulated a lot of of the recent commercial wins in the earnings. So appreciate you coming on and talking about the longer term trajectory. It's always interesting to catch up with Nicolas Damasi. He's an iron cue on the back the of of his earnings. Let's take a look at Today's big number. 85,411. That's the number of planned cuts in the tech industry so far this year up 33% from the same period in 2025 when the total for 2026 to a three year high even as overall private sector layoff announcements receded. This is all coming from data from from challenger. Bloomberg's U.S. economy reporter Julia Penzerries joins us now on the train trend that we're seeing. Look whether it's anecdotal, whether you think of the announcements coming from block just over this week we've heard from Coinbase, from Paypal, but we then get the more macro piece of data that yes, tech is the industry that has the highest number of layoffs right now.

Julia Penzerries (23:31)

That's absolutely it. You've been seeing a lot of headlines from Microsoft, Microsoft to matter to Snap and that's what Challenger looks at. Challenger tallies up these job cut announcements and the tech industry is leading layoff announcements. And the reason is for the second month in a row, artificial intelligence. And you brought up a great point. It's not necessarily at the moment that artificial intelligence is replacing workers, but the spend that is necessary, that is what is taking over and that's why job cuts have been occurring, is because they, these companies need that extra spend.

Caroline Hyde (24:07)

It's so interesting because I think everyone's got this anxiety that AI is going to replace me. But actually maybe it's just your salary that needs to be taken out to be redeployed into investment. Julia, When I take a step back though, the hand wringing is, is getting more ferocious. But when you look at Challenger data, look, since 2023, is it that they've been tracking how many jobs are at the expense of AI? It's still only about 3 1/2% of all layoffs that have been announced since that time. Right. It's still only very small.

Julia Penzerries (24:39)

It's only very small. And if you look at the broader macroeconomic picture today we got initial jobless claims and they're still hovering near decade lows even though they rebounded a little bit. Continuing claims are near two year low lows. So that's showing that even though we are having a lot of these announcements, these job cuts are either not translating significantly to the broader data or also that's just not necessarily moving the needle in the broader picture.

Caroline Hyde (25:07)

Yeah, I guess the question is whether this is a leading indicator, whether this just the start of something in terms of a wave. Julia, just briefly, what are the data do you look at to make sure that this is real or whether this is a washing?

Julia Penzerries (25:20)

I think that's the difficult question. I mean the numbers that we're looking at, even if it is a washing, what is significant is that there are these job cuts. And so we're trying to assess is the economy still in a low hire low fire environment? Because even if it is AI washing, if these jobs are being removed from the economy, that is significant. Something that you have to keep an eye on.

Caroline Hyde (25:41)

It is, and it's something that workers to keep an eye on at the day, the end of, of the day it might be statistics, but it's actually really people's livelihoods that we're talking about here. Bloom, here's Julia and Sarah. It's great to have you on. Welcome back to Bloomberg Tech. We check in on these markets that are at a new record high. We're on pace for a sixth straight week of gains on the Nasdaq 100 we're up 5 10% again amid the clouds on the macro economy side of the things the worry anxiety about U.S. and Iran conflict. We're still managing to see the trade still power a lot of these stocks. We've also still got earnings coming thick and fast and for some we are seeing absolute rocket ships in terms of moves I'm focusing in on Datadog up let's call it 30% they raise the guidance they're showing strong growth and in many ways this is as see the biggest moves in some at one point since 2019 and this is software really manages to sort of alleviate some of the angst here. They had a strong report the guidance implying a healthy outlook for the second half. So Evercore call it and TD Karen saying revenue growth is nicely above consensus for the outlook. Much better than expected. Less so for Doordash which had been trading higher in earlier when certainly after it reported earnings yesterday after the bell the gains that we saw in gross order value had impressed in many ways. They the firm giving a second quarter marketplace gross order value forecast that really beat average analysts expectations. But maybe expectations got ahead of themselves as Uber's numbers have been strong as well which is down 610 of a percent. But earnings is one of the key drivers in the market at the moment. And Sylvia Jablonski is with our cio at Defiance ETFs and talking to discuss investor appetite whether it be for software. In some respects we're finally seeing some love for datadog but you're also seeing love for what's happening in terms of of the AI trade more broadly infrastructure Quantum. We just had Iron Q one of the driving forces you're seeing in the ETFs.

Sylvia Jablonski (27:32)

Well I think the driving forces are very much that these companies are doing quite well. We just talked about IonQ off camera for a minute. There are 755% revenue growth. You know this is a company that's doing full stack services, are involved in defense, are involved in Quantum infrastructure deals with Azure deals with us. And I think that a lot of these disruptive and thematic themes are are playing out because these companies are starting to generate revenues. They're starting to go from being science projects to actually being commercial. And that's really what the retail investor needed to see. And I think why you're seeing some momentum in these spaces isn't interesting that

Caroline Hyde (28:05)

a science project I mean some days we can be very enthusiastic about the project of AI and Large language models more broadly, we think that they're going to be driving absolute productivity gains. And then there's other days where we have anxiety about just supply restraints, things whether able to build out, compute, whether able to afford, compute. How much are you seeing on a day to day the shift in sentiment?

Sylvia Jablonski (28:25)

Well, I think what's great is, is actually if you look at some of these themes, AI and even quantum, right? Like just look over the last two or three years, it's good news comes out, earnings are positive, the stocks rally 30, 40%. You know, someone says over 10 years away from, from this coming to fruition and the stocks fall 20, 30%. So what I would say is that opens up opportunities for investors when you have this uncertainty and it's a nascent field, you know, you can actually buy dips here and hold these stocks for longer periods of time, hold these power and infrastructure ETFs and things like this. But you know, what I will say is that it also just shows you how much demand there is and what the Runway is for these companies. You know, now we're talking about photonics that are needed to power data Forward. The Corning deal, for example, Corning deal, Lumentum, Coherent. You know, we're talking about different forms of, of energy, whether it's, it's nuclear energy. And all of this is needed to drive this forward. And we're in the early stages. So I think the picks and shovels are going to have a long Runway ahead of them.

Caroline Hyde (29:18)

Where there has been a lot of anxiety has been software. And look, Datadog actually calls itself an AI powered software provider. They're giving tools for coding. They're also all about the networking infrastructure. But, but how all companies getting sort of wheat and chaffed by investors right now as to whether they can harness AI growth or whether they're going to be left behind.

Sylvia Jablonski (29:37)

Well, I think when the market had that chat moment so long ago at this point, it was the Microsoft investment news. All of a sudden every single company in The S&P 500 tied itself to the word AI. And when it tied itself to the the word I, you know, that company tended to do well and the stock price went up. And then the market has figured out like, okay, not everybody is AI. And so I think datadog has done something differently. You know how that bodes for the rest of software. I think think that if you see these major software companies integrating AI into their infrastructure, they will be potentially fine. And also you have larger companies like IBM for example, you know, they might suffer on their software side, but they went on their quantum side. Right. So the diversified exposure to technology and these, you know, again, disruptive trends and I will help move them forward.

Caroline Hyde (30:23)

This is all in the context of, of disruption from a macro perspective, from a geopolitical political perspective. How, how does a long term investor who loves the idea of AI and quantum deal with the here and now of the straight of Hormonz, which does affect helium, which doesn't chips. Right.

Sylvia Jablonski (30:39)

And it's really interesting that the market has rallied the way it has when we still have this geopolitical uncertainty. Is the war over, is it not? Where do we stand? You know, I think that the market could turn at any time and that's something that investors should be aware of. However, when you think about, you know, the way that you invest, when specific, specifically talking about disruptive themes, you want to be a longer buy and you know, buy and hold investor.

Caroline Hyde (30:58)

Right.

Sylvia Jablonski (30:59)

You want to kind of weather the COVID you want to weather the Russia, Ukraine, you want to weather what's going on in the Middle east and keep that long term outlook because you're not going to be able to predict geopolitics. That being said, investors should be aware that there could be volatility and the things that get hit could be the higher growth sectors.

Caroline Hyde (31:16)

Where are you seeing new appetite that you're someone who, yeah, things around opening new ETFs you like you harness the appetite that there was in crypto, particularly in AI infrastructure, in space, in quantum. Where. Where's the puck moving while the puck

Sylvia Jablonski (31:31)

is moving to, you know, a lot of these picks and shovels of AI, it really is, you know, you're talking about memory, you're talking about photonics, you're talking about the AI infrastructure and build out the picks and shovels. Last time we were on we talked about modern warfare. Because of what's going on in Iran and around the world, there's been so much growth in, you know, drones, manless drones, you know, Palantir. The type of AI that is going to be funded by governments to grow out defenses is just, you know, a massive opportunity. So we really see investors starting to allocate and look into the, the cousins of AI outside of just straight ships.

Caroline Hyde (32:06)

And we've got a key IPO to be talking about in the world of satellites. And I know that you've got exposure to the world of satellite in defense tech. Sylvia Jonsky, it's great to have you on of defiance. ETFs coming up. We talked to that CEO Hawkeye360. It's a satellite surveillance firm. It just raised $416 million in its IPO. This is Bloomberg Tech.

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Caroline Hyde (35:39)

Another tech company, is going public today. In the latest sign that the IPO market is picking up steam. Hawkeye360, priced at the top end of the range, raised $416 million and the firm provides satellite based signals intelligence for US government agencies. Hawkeye CEO John Serafini joins us now. And look, your shares are currently indicated to pop at the open $30 to 32. How does that make you feel? John?

John Serafini (36:02)

It's a wonderful day. It's a wonderful day for our company and for our customers around the globe.

Caroline Hyde (36:08)

Okay, so we could see that sort of movement higher. $26 is where you priced you. How are 25 times oversubscribed? So for those that didn't manage to get in, what's the thesis here? What are the growth opportunities for for Hawkeye 360?

John Serafini (36:21)

Well, it's a very durable all weather company. We obviously have a value proposition of providing signals intelligence to the warfighter community during times of geopolitical volatility. But our capabilities are orchestrated to provide value in all environments, in all business conditions. And we have a track record of having built a very durable company that works in any operating condition, in any economic environment environment.

Caroline Hyde (36:45)

You only operate a constellation of more than 30 satellites. How does that look to grow and what actually do those satellites perform right now?

John Serafini (36:54)

Yes, so our constellation today is over 30 satellites. It provides an exceptional revisit rate over anywhere on earth as well as very low data latency so we can get that data to our customers, the war fighters in timely manner. All these conditions provide for capabilities that the warfighter is using in places like the battlefield or in the South China Sea to be able to detect and track dark vessels. We have a very exquisite value proposition of being able to geolocate, analyze, process RF data and deliver that to war fighters on a timely basis.

Caroline Hyde (37:27)

How does that expand? Is it just The US Government and it's more of the budget. That is an expanding budget coming from the Pentagon or is it other allies that you work with? How you you seeing the growth of Hawkeye 360?

John Serafini (37:39)

Well, we've orchestrated our company to be very diverse in our revenue base. So we have a US government business that's significant. Today it represents about 75% of our work. In the past our international business has been upwards of 50% of the Hawkeye heritage capability. We have a number of great international customers. We're very pleased to be able to support them. And the growth drivers in the international side are very robust bust.

Caroline Hyde (38:04)

You are using the money, the funds raised to repay debt and to help fund deferred payments related actually to an acquisition you made in December. What about that? I mean, you bought a Dallas based provider of signal processing technology. Could you add on anything else? Or is acquisitions in an inorganic growth a rate to continue to expand?

John Serafini (38:24)

Well, we're quick to want to combine the organic growth of over 70% last year in 2025 and the exceptional profitability of over 20% on adjusted EBITDA basis in 2025 with continued inorganic growth opportunities now that we've acquired ISA, which is a meaningful acquisition both in revenue and profitability and an exquisite fit for our technologies. And we have the institutional muscle to do this. We anticipate doing more acquisitions and certainly the IPO provides the proceeds from for us to enable that.

Caroline Hyde (38:55)

What's interesting, John, I mean you raised I think 173 million in a series A E funding round. You earn nearly $2 billion according to PitchBook. Why not stay private? What we've seen is, you know, massive companies wait for extraordinary lengths of time to eventually tap the public markets. Why was it right for you now?

John Serafini (39:14)

Well, the warfighter deserves the very best suppliers of capability to them. And the IPO process provides exceptional validation to ensure that a company like Hawkeye 360 is capable of delivering valuable intelligence to that warfighter. So we appreciate the bona fides and the validation that we've gained from becoming a publicly traded company. And obviously we appreciate the resources that are now on our balance sheet that will enable us to execute against special initiatives that will provide growth to support the war fighter.

Caroline Hyde (39:43)

John, it's great speaking to me. We look forward to when the shares start trading. John Cellar Feeney, he's the CEO of Hawkeye 360. Congratulations on the listing. Shares of Time are actually trading lower today. 7.9%. But the company reported earnings that beat expectations. They Raised full year revenue outlook. It's kind of synonymous with what we've just seen with ALM a little bit earlier. The more notable change that Bloomberg Intelligence focuses on is the Fintech raising its EBITDA outlook up 9% at the midpoint. So let's delve into all these numbers. The growth, the new users, the Chime CEO Chris Britt and the stock not doing the work. But more broadly, we are seeing that you outperformed in your fiscal first quarter. How are you seeing growth for the company?

Chris Britt (40:30)

Well, thanks for having me, Caroline. It's great to see you again. We felt great about the quarter. We once again added a huge amount of new members into our customer base. We added 700,000 new actives so we got to 10.2 million for the quarter, which is a new high for us. And third party data from JD Power once again showed that Chime was opening up more checking accounts than any bank in America. In fact almost 50% higher than the number two player in terms of opening up new accounts. And you can see that translate into our results. 25% year over year, top line growth and great outperformance on not just top line but also in terms of efficiency and EBITDA. We achieve an 18% adjusted EBITDA margin and GAAP profitability for the first time.

Caroline Hyde (41:18)

This is all on the arc of having gone public and continuing to build out as a company. There is seasonality to your business in the second quarter brings that seasonality. Perhaps revenue gets hit a little bit, maybe actually acquisition costs. How do you continue to build through that seasonality? What is it that you can bring in terms of AI within the product and also within your business?

Chris Britt (41:38)

Yeah, that's right. Q1 is always a outperformance quarter for us because we get outsized amount of spend and deposit as a result of the tax refunds that come into our accounts. So naturally Q2, you see that start to fall off a little bit. So I think the best way to look at this company and what we try to educate investors on is to really be looking at the year over year results of the company. We feel really good about the remainder of the year. In fact, we raised our guidance for the year on revenue and adjusted EBITDA as you mentioned. And I think it's really the product portfolio that's going to drive that with the. We were on the show just about a month ago and we announced the launch of Chime Card. So we're just. I'm sorry, Chime prime. And we're just about a Month in and it's been Great. We offer 5% cash back on the category of your choice so you can pick fuel, restaurants, you know, bills, you name it. And it's really been a big hit with our members so far. You also get 3.75 APY on your savings and we've got a whole host of other products including products that we think will be a nice tailwind for growth over the course of this year.

Caroline Hyde (42:44)

It's all about member engagements, about cross selling. Talk to me about how that AI that maybe shows up in the product also is showing up in just the coding. You're doing the work that the, that those that work with you are currently deploying.

Chris Britt (42:56)

Yeah, we really see AI as an accelerant to our business. We've embedded it inside of the company. We've actually, we have a chime built software factory called Archimedes which allows employees within Chime to create agents, agents that can work simultaneously to, to build products on our behalf. So literally from starting from idea and conception all the way to product rollout, we have agents that are now doing a lot of the work for our members. It's over 80% of our code that we shipped last quarter was AI, was done with AI and so it's a huge accelerate to the velocity of what we launch. But then in addition to that, we have a service for our members and AI copilot that we call Jade that we think is an opportunity to move the banking experience from, you know, looking back at history and just getting reports on how you spend and these sorts of things, but actually being more proactive and helping people, helping drive behavioral changes that can help drive people towards the best financial results. Paying off high interest debt first, getting a savings account, making sure that you're investing on a regular basis and not missing any bills that are due at a particular time. We're really excited about the opportunity to use AI to help our members make financial progress inside the app.

Caroline Hyde (44:12)

How does your employee base feel? This week has been tough in fintech, PayPal and that they're not saying it's because of AI but they want to lean more into AI. And you're seeing with Coinbase that is a total focus on trying to rewire, reframe the business built around AI with just humans at the edge. What are you thinking of it Chris?

Chris Britt (44:33)

Well, look, we already operate a very efficient company. We, we generate over one and a half million dollars of gross profit per employee. So we feel like we have a, the right sized company at this point in time. What's and our employees here, our chimers are, are excited about this opportunity. We are really entering into a golden era of what can be done with software products as a result of AI know all the attention goes to the sort of frontier tech companies and AI companies for good reason. But I think what's often underestimated is just how I can be leveraged by industry leaders that are technology companies to create better products to make it happen faster. And our employees are really excited about using this, this technology to create great outcomes for our members.

Caroline Hyde (45:22)

I think many of your members might not think it's a golden age for their economic circumstance. When I think of the pressure they're under from oil prices and you talk about how you're trying to help some of your customers get money back when they spend on on gas, for example. How is the customer feeling?

Chris Britt (45:38)

Well, I think, you know, for the past few quarters there's, there's been a lot of questions about the health of the consumer and I think for good reason, obviously the geopolitical uncertainty that the sort of broader macro pressures but we aren't seeing it in, in the results. We're seeing a healthy consumer in terms of spending. Double digit increases in areas like entertainment, streaming services like Netflix, home delivery like Doordash and Instacart and then also big box purchases. These are all up double digits for our members year over year. We're also seeing balances that are higher, sure because of the tax refund season but even beyond that we're seeing elevated savings account and checking account balances and we have not seen an upgrade uptick in unemployment benefits and we see we are the primary account for millions of our members. So if there was a bump in terms of the labor market we would see that among our customer base. They just haven't been affected yet by it. And I think you've seen in the recent numbers that have come out around labor like for everyday consumers we're close to full employment still. I think a lot of the gloom and doom is more around the white collar work that that is starting to

Caroline Hyde (46:48)

be replaced by AI Chime CEO Chris Pratt. It's always great to catch up with you. Thank you for joining. On the back of your earnings, let's turn our attention to more earnings that are coming out. Core Weave shares you see. Wow. Year to date up 79% surging in 2026. And look demand fuels the need for compute capacity. Of course investors are looking for proof that the new cloud provider can execute on on its ambitious plans and its reports results after the Closing bell. Dana Bass joins us now. And look, phenomenal appetite for compute, phenomenal appetite for the stock that's been volatile though. Dina, what do we need in terms of fundamentals from Core?

Dana Bass (47:25)

We've sure, I think that people want to see continued signals on the demand. The demand signals last month from all of the large cloud providers that reported as particularly Google, but also us and Microsoft were that demand for AI capacity, as you said, remains extreme, extremely strong. We just saw Anthropic sign a deal with X to take up some of their capacity. Everyone's looking for as much as they can. Corey themselves in April signed deals with Anthropic, Metta and Jane Street. So people want to see further details on what the demand looks like. But so far all indications are that it remains really strong problem. The question is how is Corey paying for expanding capacity?

Caroline Hyde (48:08)

Right.

Dana Bass (48:09)

In order to meet all that demand you have to acquire, build, develop more air cloud capacity and that's pricey and you know, and has been a little bumpy for Corey then and others in the industry.

Caroline Hyde (48:20)

Yeah, there is this on again, off again anxiety as to bottlenecks or as to how good customers are for the money, Dina. But when they're branching out and it's not say an open air exposure so much, but it's jump streets, as you say, it's finance, it's other enterprises, how much do investors understand that opportunity?

Dana Bass (48:40)

I think Corey was tried really hard all along since their IPO to both diversify their customers and make sure investors understand that early on the concern was that a very large percentage of their revenue was tied to Microsoft. And we saw, you know, with reports of OpenAI possibly not selling as much as they might hope, you know, Corey shares and other, other providers reacted to that and Corey came out pretty, pretty quickly to say look, we have, we have a lot of other customers and so they're trying to make that clear. They're also trying to sell more software services. You know, part of their deal with Nvidia involves figuring out, you know, having Nvidia market other things that Core where you can sell besides the raw, you

Caroline Hyde (49:22)

know, compute, power, DNA. Bass, it's going to be busy after the bell. Thanks for joining us on it. That does it for this edition of Bloomberg Tech. Don't forget to check out our podcast find on the terminal as well as online on Apple, Spotify and Iheart. And don't forget to tune in to those numbers. Breaking off to the bell. This is Bloomberg Tech.

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