Apple’s Executive Shuffle: Bloomberg West (03/04)

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March 4 (Bloomberg) -- Full episode of "Bloomberg West." Guests: SurveyMonkey CEO Dave Goldberg; DocuSign CEO Keith Krach; Bitcoin Investor Erik Voorhees; Singer Deutsch Partner John Singer; Montgomery & Co. CEO Jamie Montgomery; HomeAway Co-Founder & CEO Brian Sharples and Bloomberg’s Anand Srinivasan. (Source: Bloomberg)

? welcome to "liberate wes." i am emily chang.

Bitcoin bounces back a week after the popular exchange mount gox.

Disney and dish said -- signed a landmark deal that allows dish to deliver disney content over the web.

First, i want to welcome our special guest host for the hour, the ceo of survey monkey.

Thank you for joining us today.

You guys are out with a new survey monkey mobile app.

This is the first time you ever had a nap.

Tell me about it.

Class we want to take people the power of survey monkey on the web and give them the ability to send them out and analyze data on a mobile device.

We never had a full functioned survey monkey app to do the creation side of mobile.

We will survey a few on our show for this hour.

We already have 100 responses.

What is the kind of speed you can get the surveys done that?

You have a quick question and are on the go.

You want to ask a question and you have a six question survey.

We tweeted out and have over 100 spot -- responses.

People will come in and you will see the responses in real-time.

We will do a survey on bitcoin, mobile devices, samsung versus apple.

The ceo is with us and we will do a survey on how often people use these services.

My question is, how many businesses need to surveys on the go?

Do they need a fast response?

Sometimes, a lot of times, our existing users want to check their surveys.

I have used it legally.

I put a survey on the field and people not understand the question and i want to change the question.

So i added the question.

I created it on the web and i want to edit the question real-time and i see the results as they are coming in.

It is all of those together.

We do 50,000 surveys a day, something like that.

Large numbers of surveys being created today.

-- a day.

We are excited about it.

It is still early.

We are launching in more countries.

There is a lot more to do in mobile.

All three service i mentioned, we tweeted those out from our bloomberg west account.

You can answer them there and we will get to them later in the show here at i want to get to our lead story of the day.

Peter retiring at the end of september replaced by the vice president of finance at apple.

He has been married 18 years and oversaw moves to reinstate businesses and return $50 billion to shareholders.

Cory johnson is with us in new york.

I will start with you.

Anytime someone leaves a company as powerful as apple, questions start.

Is something wrong?

Did something go wrong?

I do not think so.

It is an orderly transition.

There has been a senior cfo candidate.

I do not think people will look at it and say, this is an orderly or an unexpected transition.

People will be not surprised by it.

Peter has been an incredible steward of the country to a very dramatic time, overseeing dramatic expansions in sales, etc.. his stepping back is not altogether unsurprising.

When you look at the numbers, they are astounding.

When he took over as ceo -- cfo, -- the question is, is the new guy up for it.

He has only been there for year.

A lot of pressure on how they use their cash.

Peter has done it -- an incredible job in ken the new guys step up?

Cori, is he up for this?

He has seen the other side of success.


Gm and europe had a lot of issues during the time he was there.

You can see the difficult and compensated financial situations can be.

He did interesting things and led the company through a lot.

Factoring things on a global basis, something we have never seen before like the iphone, and getting the distributor without having big inventory problems.

Being stuck with her -- with inventory.

That seamlessly in a way few companies have ever done.

He said they knew he would be peter's successful.

You run a big tech company.

What do you look for in a cfo?

You look for people in a public company that investors will trust.

The cfo is the trustee of financials.

That is critical in places like apple.

And then, how do think about the problem of too much cash?

That is the thing investors want to know from the cfo but that is not just his decision.

It is what peter has spent the last year and a half on.

He has an extensive as -- resume.

When you look at a guy who has only been at apple for a year, what are your questions?

His background is having dealt with complex financials.

He brings a lot to the game.

Apple is going through a time of transition having too much cash on the balance sheet, restructuring to the point of having debt on a bouncy, dividend, how to buy back stock and make it effective.

All are large-company problems.

When we say large, apple brings a new dimension of scale.

They're very interesting challenges.

We are also hoping from an investor community more disclosure.

A little bit potentially challenged with steve jobs.

Hopefully that improves as well going forward.

There is one problem -- product -- the iphone.

Iphone sales growth is slowing down.

Cori, how the -- how do they conduct him like that?

-- combat something like that?

They will have to figure out how to get the financial strength they need without committing too many resources.

I want to take issue with something said a minute ago.

When i went to visit apple, oppenheimer would sit down with us for lengthy visits explaining a lot about not just what the company was doing but how they thought about financials and really gave us a lot of feedback.

That was one of the roles he had, particularly when steve jobs got sick of dealing with wall street.

He was able to open up his calendar and talk with investors.

I do not know if that was the same when the stock had risen so much.

Do you think it is a bullish signal that they're doing it now?

This has been underway for a long time.

There were rumors years ago berkeley and cfo, they brought luca in to groom him for the role.

It is clearly underway.

He has been at the company for a long time and made shovels full of cash.

Disclosure is one of those issues where investors are never satisfied with what they are getting.

They want more and more.

With technology and the changes the industry is going through, coupled with apple's cash and buyback and dividend, etc., more information is oh is great.

Incremental information is oh is great.

We're looking forward to getting more.

All right.

Thank you both.

We will talk about the future of the iphone later in the show.

As we had to break, a click programming note.

Tune in this thursday.

I will be speaking with eric schmidt.

We will have the full conversation for you thursday and will be back after a quick break with my special guest host.

More to come.

? welcome back.

I am emily chang.

We're talking now about the software startup that makes ec managers easy.

It was expected to go public this year but instead just raised $85 billion in new venture funding, bringing its total to $210 million.

Why not the ipo route?

Steve is with us now in the studio.

Cory johnson is also still with us from new york.

Keep, why not go public gekko -- public?

We're building digital transaction management.

If you think about it, every company in the world is a potential customer and every department is a potential customer.

We are taking these and investing in our digital transaction management platform and also focusing on key vote -- verticals like financial services, insurance, and especially with our over 500 partnerships we just announced last week, our long-term strategic order ship with microsoft.

We are integrating the product and that will expose us to one billion.

Why can't you do that inside the public company?

Why did you have to stay private to do that?

Classic gives us freedom to play out a lot of these chess moves and continue to make built to last investments.

We have our user conference starting today.

We will be announcing the trust foundation, which means bank security, carrier class availability.

Together with industry leaders, we are defining the standard in terms of security availability, privacy, openness, and all of that.

Let me ask you.

I talked to the guys about their decision to go public.

There was a belief there that just having a stock let alone a successful ipo helped open some boys in corporate america.

You have run public traded companies.

What do you see as the downside to having a publicly traded stock?

I see no downside, in terms of that.

What it allows us to do is it allows us to think long-term.

Our objective is to create a great long-term sustaining company and be that global standard.

We look at an ipo as financing and nothing more than that.

He recently did the same thing.

You've raised a lot of money instead of pursuing an ipo.

Why did you make the decision?

It is different.

Keith raised a good chunk of money but not really catching out existing investors.

We cashed out existing investors.

The people we took money from new we were not then i go public for very long time if ever.

A different strategy.

I do not think he would say he is not going public.

Were saying, just not this year.


There is tremendous opportunity.

If you think of some of our equity investors, salesforce, a number of strategic partners, it is fundamental to our strategy to thrive in a heterogeneous environment.

It brings much greater value to our customers.

There have been very successful tech ipos recently.

The environment seems quite good.

Why not take advantage of that now?

Is more than about the short-term money.

I think it is about building something great to last year look at our customers.

We have got 95,000 customers large and small.

We are putting 40,000 unique users on a day.

This is what we're focused on.

The thing that is whipping in the win for us is the tremendous it -- return on investment our customers are getting.

John will be speaking at our momentum conference.

150 countries and on average, they saved $30 per document and have reduced their turnaround time by 21 days.

It sounds like what you're hinting at is when you're at a public company, there is a pressure to focus on the quarter and maybe that is focusing on the ground game and not the long ball.

Is that what happens still at public companies?

I think it allows our entire leadership team to focus on our customers, and our partners, as opposed to when you are a public company and you focus on quarter after quarter after quarter.

We are taking advantage of that.

One next question.

How do you make sure you do not wait too long?

We allow our employees to sell shares.

For us, we have a great compensation program.

The employees, they see a giant tidal wave coming.

This is one of the biggest markets.

We have become the global standard.

They have their sights on the long-term.

Even more than that, i think really realize this is a once-in-a-lifetime opportunity.

A noble cause in terms of giving people the freedom to digitally transact anything, anytime, anywhere, and any place.

Thank you for joining us.

Cory, dave goldberg, you're sticking with us.

You can vote in our polls this hour.

We will be right back after a click commercial break.

? welcome back.

I'm emily chang with our special guest host.

We will talk about one of the surveys we have been running.

You have been running for us.

The battle of the five.

Samsung just released its galaxy s five last week.

You are at the global world conference.

There are death of a how will it has been doing.

We talked to customers and ask them if they really wanted to upgrade.

What sort of things did you get about the health of the smart phone market?

There were a lot of people there.

80,000 people.

But there was not a lot of excitement when people were talking about.


They unveiled the galaxy s five.

There was silence.


It was not an overwhelming wow.

It was more like, this is incremental and nice.

It is an interesting thing.

It has seemed innovative and outpacing apple, yet apple.

That same reaction back to the five.

Are we reaching the limit yet though we ran the survey.

17% of the people said they owned the samsung galaxy, which is high.

67% said they have no intention of upgrading.

People are pretty happy with their four.

You can drop it in water and it will be ok.

There are cool features but we seem to be slowing down on the features people want.

The thing that did come back that people really want, and this is hard to do and not some you will get done in a year, people want longer battery life.

We have big phones with great screens and he can do amazing things, and then they die.

If i knew i could get a phone with a battery that would guaranteed to last name -- that is guaranteed to last a long -- i'm curious.

Would people be willing to upgrade if apple came out with a bigger screen?

Class there will be people.

We did not seem -- see screen size as the big thing people want it.

Battery life.

There was not much interest from apple users who do not have a five s buying a five s. what about the five c? no interest at all.

Sometimes i wonder if the billboards are a signal of what apple is trying to push.

There are so many of these billboards.

I wonder, is it that in the water?

It looks like it is not found its niche.

Price is something people care about.

But it is not that cheap.

They do want a smart watch from apple.


Data people are really excited.

What is probably most interesting is people are much more excited about a smart watch than google glasses.

We see that continuously.

They want a smart watch from apple.

They believe apple will create a sky -- a great smart watch.

More coming up.

Also, a survey about bitcoin.

Check out our twitter accounts.

We will talk about bitcoin next.

It is bouncing back.

What happens for investors?

I am here with dave goldberg, the ceo.

It is 26 minutes past the hour.

Bloomberg television is on the markets.

You look at markets continue to climb to record highs.

All reaching all-time highs as well along with small-cap stocks.

A record-breaking day.

One stock we want to point out we're watching is qualcomm.

It is returning cash to shareholders.

20% boost to its quarterly dividend.

Back on the markets in 30 minutes.

? you are watching "bloomberg west." i'm emily chang with your bloomberg top headlines.

Radioshack's turnaround plan is not taking off retailer fell 20% in the fourth carter.

$191 million.

Radioshack says it will close up to 1100 stores.

Shares are plunging today, down more than 13%. a car yelling at, huber, -- a feature rolls out to iphone users is weak.

Back in december, it received plenty of criticism for charging writers as much as seven times the usual fare during east coast snowstorm and the controversy has certainly not ended.

It is a changing of the guard.

Steve officially takes over as ceo.

Bloomberg is told smartphone growth is still in its infancy and they have plenty of opportunities in emerging markets.

The company also raised its dividend and boosted its share buyback program.

Bitcoin is bouncing back trading today.

This is just a week after mount docs declared bankruptcy and when off-line.

Survey monkey fielded a survey for us to get your opinion on this.

The ceo with us now.

I do not understand why the price of bitcoin is going up after the bankruptcy.

But we will get with that in a moment.

You did a survey about bitcoin.

We have been doing it through the show.

Class like two thirds of the people, 64% said they have heard of bitcoin.

And there has been a lot of talk about it.

But very few people are actually using it for anything here that make sense.

Only 11% said they had bought bitcoin or sold it.

I am skeptical about it as a currency for transaction but it is interesting as a replacement for things.

Everyone is excited about it being a currency for buying and selling things.

I am less excited about that.

More like a commodity.

Better thing to storm -- store your wealth and.

Class are you nervous about it getting stolen?

Hundreds of millions of dollars of bitcoin disappeared from our thoughts with no trace.

Class i think we will see a change in the bitcoin economy.

A lot of stuff gets funded.

The first thing people want is security.

I want to know this will be safe and insured.

A lot of the things we have in the regular banking regulatory system, people will want in bitcoin.

Class ok, number three, have you ever encountered an establishment that uses or accepts bitcoin?

Most people said no.

20% was higher than i would've guessed.

How likely will you use it in the future?

12% says very likely and that is pretty good considering it is something most people are not using today.

54% said not at all likely.

The federal question, how likely is it bitcoin will become a widely excepted form of currency?

Click 16% said extremely or very likely.

It is low.

For something very few people actually own, we had a major meltdown last week, it is not bad.

But yes, a lot of people think it is not at all likely.

Out diverse are the survey monkey answers?

This one is different.

It is just, we have posted it and this is anybody who wants to come in.

This is not particularly scientific at more fun.

We're getting people coming through bloombert west to answer it as well.

But interesting.

Class we will go on a deep dive into bitcoin now and what happens to the people who lost their money through mount docs.

John singer is a partner joining us from new york.

Eric voorhees is a bitcoin investor who launched nearly $300,000 in the meltdown.

He is with us via skype from panama city.

First off, tell us your story.

How did you lose the money?

Class my story is a long one with bitcoin.

I have been involved since 2011. that is forever in the bitcoin world.

I had money in stocks.

Not all at first, but some.

I knew gox was not a great place to keep my funds but i had it there.

It was a big blow that it is gone.

Chrysler have you tried to do so far to get it back echo class i know what is going on.

It will not come back.

I have written off as a loss.

Have you given up on bitcoin or are you not completely dissuaded by the loss?

It is my passion.

It is what i do all day every day.

It will change the world.

Mount docs was one bad company.

Ecosystem is much more healthy now.

Do the people who lost money on mount docs, do they have any legal recourse?

The skepticism is justified and warranted.

With the company filing for bankruptcy in japan, it is important for the united states.

All litigation -- there is nothing you can do against the company other than become a creditor.

It is not likely to yield such a result.

There are entities to go after, the ceo and management.

You have already seen a proliferation of class actions.

There's one in illinois and one in london.

People going after the management of the company, the ceo directly, and maybe the parent company as well.

There is liability but the question is, where the -- will there be a deep pocket.

One other avenue is bitcoin come it is not clear who owns them.

They are not anonymous.

Every bitcoin has a code.

People are trying to trace the code of the stolen clients -- coins.

How low the people will recover from that method?

That will be a much harder method of recovery.

The method will go against the principles of the company.

Maybe related entities and auditors, maybe people who did their cyber security systems.

It is a situation where the security ins -- in place was not sufficient enough to prevent 850,000 bitcoins from being stolen.

The most direct route will be against the principles and affiliates.

Again, at the end of the day, will there be a pot of gold for investors and the answer is probably not an people may have to seek to recommence in the bankruptcy court, never a good thing for investors.

Class going forward, will you continue to invest in bitcoin or waited it out and see what happens?

No, i am a big time -- i am big time invested.

Instead of spending money on lawyers trying to fight the negation for years with mount docs, i think those dollars would be far better spent investing in bitcoin and the bitcoin company.

We had 50,000% growth in the last few years.

Whenever i spend on lawyers now, if i bought bitcoin with that, it would be better.

Class you are bullish still on bitcoin, which explains why the price has gone up.

Where do you see the price going?

Where will bitcoin be in a year from now?

The first rule of investing in bitcoin is do not try to predict where the price is going.

It is a very binary option.

It is either going to replace many of the ways people interact to the world, or the whole thing will fall apart and the experiment will fail.

If you are comfortable with those outcomes, you just have to get in and hang on for the ride.

You have a much bigger appetite for risk than i do.

Thank you for joining us.

A bitcoin investor there, john singer.

Thank you.

We will be back.

You can weigh in on all of the service we talked about today.

Tell us where you book your travel.

We will be right back.

? welcome back.

Dish has reached a groundbreaking agreement with disney.

It will offer disney and espn shows over the web.

What does this say about the future of tv?

I want to bring in the founder of oasis, which gathers leading investors.

Also with us is jon erlichman.

First of all, what do you think about the big deal?

Is this a first huge step toward changing television as we know it?

Thank you for having me.

The industry is changing, and changing rapidly.

To me, it sounds like a trade.

Disney is offering tv content rights everywhere in return for moving out the other technologies for a dvr type scenario.

It is a -- one move of many in the shifting landscape of digital content.

If you think about where the tv experience goes, as emily was suggesting, if dish were able to out of this deal, get long-term rights to have the -- disney content if they are offering more of an internet tv experience as opposed to satellite, how successful do you think that kind of offering could be?

Very successful.

That is what the advertisers are looking for.

The money is moving into video advertising.

They're looking for well-defined marketplaces and the handheld and over-the-top television and mobile platform.

I think the comcast acquisition brief -- reinforces that this week as well.

It is one step of many.

You have different consumption patterns, binge feeling.

The new netflix release of house of cards had a whole new consumption pattern.

Content creation for new platforms.

This is a significant step in a huge major shift in the consumption of content.

Do you think at the end of the day the cable companies are scared by this?


But they can still offer the broadband.

The consumer still has to look at somebody using internet tv and saying, ok, they will still have to consider using comcast and for the extra amount of money you pay for video, maybe the difference is not there.

It is a real competitive threat.


I think it goes just a wire of the home goes the way of the old telephone line.

It is not required and the cable companies will offer broadband and have competition from wireless and fiber and the content will become more of an all a cart offering where people like you and i can choose what sort of content we want and how we consume it.

I think it will get a lot more complex.

We will spend more money on content though.

A different menu of content.

I will be at your oasis con -- conference tomorrow sitting down with the executive chairman of google.

Thank you for having me.

I am looking forward to it.

In terms of your conference this year, what are big trends you're looking at in terms of what is going on in tech and how it impacts the investors?

Only about 30 seconds.

Big data is a huge area.

Analytics and clout is a big area.

Cyber security, those are the three areas, the companies we focus on.

What about valuations in general?

Are people concerned about that?

People are worried.

Is this 2007 or 2009? we think valuations are pretty high and we do not expect too much higher.

It is a good time to raise money, go public, or sell your company.

There is a lot of activity.

All right.

I will see you tomorrow.

Jamie montgomery, as well as jon erlichman.

Thank you both.

I will again be moderating a discussion with eric schmidt and the google ideas director at the oasis summit.

You can tune into the conversation thursday.

Coming up, just how many people book rooms through vacation sites?

You can still vote.

? welcome back.

We have been asking our viewers throughout the hour to respond to some surveys.

We are talking about how people book their travel.

Let's look at some of the things we found.

We asked people how often they used their home or site to book their travel.

It was pretty small.

By 70% say never.

Six percent always or usually.

As a group who does it, it is very passionate, but it is small.

We asked how people typically look travel.

It is a lot of times through hotel websites directly.

But we got four percent to say vacation rental sites.

That is the main thing.

One of the things that came back is why would you not list your property and most people said, not knowing the people i would be renting two.

42%, that was their concern.

Brian is with us here in the studio and cory is with us from new york.

How do you respond?

The majority of people never use booking sites.

We also do a lot of surveys ourselves and the travel industry does quite a bit.

The target market for something like a home away, a vacation rental site renting outhouses and family groups traveling, there is consistent data.

About 17% of families who go on vacations choose a vacation rental.

By far, the majority stay in hotels.

Back when i started the company in 2005, the number was about 12%. it has been growing about a percentage point every year and gets easier to do it.

It is $100 billion economy in the u.s. and europe.

Travel is very big.

17% slice of it is a bit of money.

Those numbers are probably fairly consistent when you take out people who are not families.

What is the barrier for people deciding to use this?

I think brands help a lot in any purchase decision.

When you stay in a hotel, you typically have a brands to work with.

A vacation rental is usually owned by the individual and you do not know who that person is and it might be far away or halfway across the world.

One of the biggest barriers is information.

Some websites try to provide as much information as possible and provide photographs and more importantly, to also provide reviews of the properties so people reveal just feel more comfortable when they get there.

On a travel family, i almost always use this website.

The challenges i found was that especially with home away, people do not respond right away.

Sometimes, there are multiple booking agents involved so they will give it away to someone else after they are to promised it to us.

How do you overcome the challenges when you're are dealing with regular people who are just ready up their home?

Historically, it has been a marketplace business almost like ebay in the early days.

A wild west city were introduced to buyers and sellers and some respond quickly and some would not.

What ebay did in the day is they brought in paypal and they tried to standardize the transactions on a payment transactions is a man-made response quicker and made everyone else feel safe.

That is the evolution we were going through at home away.

Two years ago, we launched a new payment platform.

About 37% of our owners in the u.s. are now on the platform.

It is growing faster than paypal did for ebay in the day.

In the next five years, our hope is we will get the majority of our owners using a system that then makes all of the formation function in a sane way hotel booking might be.

You go to the website and know what is avail by the time.

You can book a quickly or if it is not available, you know that ahead of time.

One of the ways people discover places is they portal -- a portal.

Talk to me about your relationship with expedia and how that has progressed.

17% of families stay on vacation routes.

Home away has a very broad footprint around the world.

We are probably doing 10 billion plus in transactions on our site and that is the 17%. we are interested in the other 83% and those people do go to sites like expedia.

We are looking to introduce the products we have too those consumers are we recently struck a deal with expedia and our properties are now starting to appear there in testimony.

We are finding it is not cannibalism is -- cannibalistic to their business or hours.

When they see them on expedia, they think, this is a good option.

I've got five people going.

And they are selecting them.

So far so good.

All right.

Thank you for stopping by.

You're heading back to austin sxsw.

It is time for the bwest byte, one number that tells -- tells a whole lot.

Six percent is the number of people in the u.s. who axis -- access the internet through only mobile devices, no keyboard.

That is an interesting trend.

We have to pay attention to it.

Mobile devices like tablets get a lot more capable, are people going to not have pc's at all?

It is mobile only.

I am surprised.

I thought the number would be a lot bigger.

I would imagine of the six percent, about 90% are under the age of 25. it is like 12%. for younger consumers.

Definitely higher in the age bracket.

So great to have you here on this show.

You're great.

You missed her calling as a tv anchor.

Thank you all for watching.


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