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00:00Daily active users coming in slightly higher than estimates but ad revenue light. Overall revenue light a big loss in reality labs 2.8 billion dollars. You know where they are investing heavily. What's your takeaway. Emily I haven't. And you know we don't own Facebook and I might do deals super detailed involved in it. I think the stock was up a little bit after hours so the street must think it was positive on it. And I would tell you that expectations I'm sure were pretty darn low on it. I still think. I think I think Facebook has some issues maybe under the covers you're seeing. I think like Kim Card Ashton Carter actually was out recently tweeting or something up talking about how she wished Instagram would just stop copying all that down. The bye by. Tick tock you know features the ambiance on their Instagram feeds. Can't help but notice how many ads there are I think. Tick tock is given these people these guys are run for their money in. In this you know in this younger demographic. And I think I think like Snapchat still is trying to use the macro is the biggest reason. I think they have a other reason than that. Their users are you know on other platforms. Right. So just how serious do you think Facebook slash Instagram's ticktock problem is. Think it's pretty darn serious and it will be. You know I don't know. You know full disclosure we're by dense investors but which owns ticktock. I don't. It would be really fascinating to know you know what. They're very specific when the public starts to know how fast the bite the and tick tock are growing. I think there's going to be a lot more written about how much pain these these companies are experiencing from these delegates. But just go after once in 20 to 25 year olds or 20 or 30 year olds. You know how much time they spend on the tick tock versus Instagram versus you know Facebook blue like Snapchat. I don't answer your question. Right. Well the question is is the digital ad spend also shifting radically. It's you know here's an attention shift but is the money followed. I think I think it's like so I was speaking to some again do two hour bike dance research and tic tac research. I think a lot of the tick tock ad budgets are still in the experimental phase. I think they're moving quickly out-of-date into much bigger phases. But like again just relative to the size of Facebook like you know tic tock. U.S. business is not that big yet but there's obviously a huge amount of room to expand. You're also an investor in Alibaba. And you know they're now exploring this primary listing in Hong Kong. How are you thinking about Chinese tech companies right now. There are so many complicated dynamics. That's an understatement. First on the Alibaba question I think what I think the biggest impact like this the market as it when it was kind of yesterday that was leaked to the day before it was kind of a muted response of Covid percent. It was a down market. So it was a little more muted but it wasn't like huge. I think the biggest advantage to Alec Baldwin private as I understand it the primary listing to be in Hong Kong not in the U.S. is that they'll have access to the China connect at the Hong Kong Connect which is a you know could I think I still saw one research analysts say anywhere from six to 25 billion of incremental demand coming out of domestic China that would want to buy the stock. It's cheap. So as every other Chinese Internet company it will either prove right now to be the best buying opportunity or probably dead money. Your guest this guy I don't really understand the zero Covid thing but it does make it appears to me these people are like. Like tanking their economy and they don't need to be. But your guess is as good as mine is why and when that ends and things like that I like you know we own Somaly Baba. Haven't bought more. Haven't sold it. I don't. I do think though that the multiples are will be in the multiple that somebody will pay for a Chinese equity is going to be impaired for a long time because my name. But looks to all of a sudden they get like you know they get like more government approval. The government looks friendly. Well guess what. It doesn't mean in 2 years they change her mind. And I think people are gonna remember that. Well hopefully for you. Not dead money I understand. Dial Capital got acquired a minority stake and lead edge capital. How do you see lead edge defining differentiating itself from the pack. You know where do you think you're going to find the next Uber. Yeah that's a good question. So all we do how we differentiate herself is very unique from most funds and that like most funds are solely backed by they can Dow Jones pension funds universities insurance companies. Most of our capital by no actually like ninety five percent of our capital but via a number of investors is actually like world class executive entrepreneurs and we leverage those people to help our companies grow faster. And so whether you know somebody might be looking for a female audit chair or looking for like customer intros or things like that and in the whole LP base has grown veal like word of mouth over the last decade and say look we think there's a ton of interesting opportunities in software and at our LP base can help enable companies to grow faster. We've been fortunate to back a bunch of great companies whether it's companies like Toast or a Sun or Bazaar Voice and Marketo earlier on are companies like well health a whole host of companies. And like Microsoft said it best on their quarterly call yesterday when they said that the guidance was good the numbers were good and they made the comment at the end that look g I t spend as a percentage of GDP is going up. And as it goes up this whole software know all these software companies are going to continue to rise. I'm not telling you that there's no may or may not be a recession. There probably will. Of course they will slow down no different than they did in the great financial crisis in 0 8 or 9. But they then you know came growing back again. I think we are in the very early stages of a software supercycle that could last 20 years or more.

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Tech Earnings' Impact on Private Markets

Lead Edge Capital Founding Partner Mitchell Green reacts to Meta's earnings with Bloomberg's Emily Chang and provides his outlook on private markets; he also gives his take on Alibaba's Hong-Kong listing. (Source: Bloomberg)

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