tv Bloomberg Technology Bloomberg May 10, 2017 5:00pm-6:01pm EDT
director james comey since the day he was elected president. the deputy press secretary said that the president had lost confidence in comey and acted on the advice of the deputy attorney general and others when he decided to fire him. russia's president says his country had nothing to do with the firing of fbi director. cbs news caught up with putin as he was about to take to the ice for a hockey game. he said president trump was acting in accordance with the constitution when he fired comey. a newbelieves it has weapon in its fight to win the summer olympic games for 2024. the city believes emmanuel macron's victory in the presidential election will be a boost to its bid. members are likely to meet with macklin during the -- with macron during their visit. turning to crowdsourcing to update decades-old software. nasa is offering rewards as high as $55,000 to private
programmers who can speed up its computers. the competition is designed to save money and time. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. from washington i'm alisa , parenti. this is bloomberg. emily: this is "bloomberg technology." i'm emily chang. we are showcasing tech giants and startups, plus breakthrough technologies. speaking with innovators, venture capitalist, -- venture capitalists, and developing news on snapchat. snares have -- shares have gone off a cliff. hyde, joiningine
us from the harvard innovation lab in boston. tell us what you have coming up. caroline: quite amazing. through here, more than 800 companies have been incubated. we want to talk about the vertical, the area of tech they are focusing on. also, a man i cannot wait to whok to, steve pagliuca, knows a thing about tech. he is also the co-owner of the boston celtics. emily: stay with me. i want to dive into snap's first quarterly earnings report as a public we traded company. as as of snapchat's -- publicly traded company. shares of snapchat's parent company. nearly $10imates by million. snap reporting 166 million daily active users. also trailing wall street expectations. are the copycat moves taking a
toll? joining us from new york, james cakmak. a lot to digest here. international growth flat across three quarters in a row now. $2 billion in stock-based compensation. you have been very positive on snap. one -- what went wrong here? james: we have been giving them the benefit of the doubt. the user number was ok. the issue is not so much their. the biggest concern is on the monetization side. it followed -- fell significantly. you wanted to see outperformance as far as that metric is concerned. put that together, you get to a revenue number of $150 million, $7 million below consensus. the issue coming into this quarter was the fact that you had a very difficult setup, where expectations were skyhigh and the bias was incredibly toward the downside. it was a really difficult
performance for the company to meet. inly: we've been listening on the earnings call. the ceo has been speaking. take a listen. we made significant progress in automating our advertising business this quarter with more than 20% of snap ad expressions delivered programmatically through our api. this means advertisers get better pricing, our community sees better ads, and we are able to make more money per impression. emily: as we know, facebook has basically lifted snapchat's stories and spread it across all the platforms from facebook to instagram to whatsapp. how concerned are you about the competition? james: not so much, yet. the users are growing at a healthy rate. engagement is growing. timeso learned engagement
spent has gone north of 30 minutes per day. that is a very sizable number. peg that against facebook property, 50 minutes across their portfolio apps in aggregate. their engagement is there. the use case is different as far as messaging, the wrongness -- rawness of the experience. i'm not looking at it as apples to apples with instagram. if you can see a situation where our monetization per user increases dramatically -- against benchmark it facebook, it's only 10% of where facebook is, when percent of twitter. you're not telling me -- 20% of twitter. you are not telling me it can't get to where twitter is today. caroline: i remember the day you came out with a buy recommendation, one of the first to do so. $25 per share still seeming reasonable to you?
james: i'm inclined to say it is at theow, just looking initial numbers and hearing what i am on the call as it relates to user growth and time spent. monetization is a question that we need to drill a little bit further on. it's unfortunate we are not getting any more clarity quantitatively on the financial outlook as we look at 2q. for the year, they are pinning that on our growth is going to be stemming from the timing of our product rollouts. questions or there's a lot more explaining we would like to see. the users and engagement are going in the right direction. caroline: still giving them benefit of the doubt. i want to ask, more broadly, a question about ipo's and how this reflects on it. we have heard this could cause a bit of a cloud around ipo's, .nternet-based ipo's
does this make the ipo pipeline a little bit more worrying when we see this sort of first-quarter revenue numbers coming out? james: the ipo itself was a success. i think the issue was -- it's interesting. expectations just got so high with the sentiment so negative. the most bearish people on the stock had the highest estimates. when you talk to the buy side community, that was the case as well. it was a very difficult company. a very difficult setup to perform against. they had to do well beyond the rosiest of expectations in order to put the naysayers to rest. it was kind of a lose-lose situation. that is a learning lesson that other potential ipo's can take, but the ipo you can argue was ok. emily: snap shares down almost 26% after hours. i know you would be jumping in on the call. james cakmak.
much. so we will continue to monitor the call and bring headlines as we have them. caroline: we will do. sells on the stock at the moment. back to boston. we will be speaking with none other than bank capital managing director and boston celtics co-owner steve pagliuca. that's next. this is bloomberg. ♪
technology." massachusetts leave the u.s. in capital investment for biogas leads the u.s. -- massachusetts leads the u.s. in capital investment for biotech. a hefty donation from steve pagliuca and his wife, the pagliuca harbored life lab opened its doors last november. peek at the -- we got an inside peek at the incubator. it's a 15,000 square foot incubator, into a dead -- intended to support harvard's life lab. silk, developed at nearby toughs university -- tufts university. >> we pull one protein out of silk in solution format.
we are reengineering silk to encapsulate and protect that. caroline: the cofounder and ceo explains this small patch is made of hundreds of vaccinated microneedles that are wrapped in a silk protein. it makes vaccines easier to administer and, more importantly, eliminates the need for refrigeration. >> it is something i can administer much more easily. secondarily, this patch is shelfstable. we can ship it around the world without refrigeration, which is a major challenge with a lot -- all of the vaccines on the market today. caroline: to remain effective, all vaccines need to be kept cold from point of manufacturing to end patient. vaccineselfstable could make it easier to vaccinate the entire world. >> it is roughly $30 billion. the burden of the cold chain is anywhere from the $4 billion to
$6 billion range if you think of it from a global perspective. the opportunity to expand access is a pretty compelling goal. caroline: founded in 2012 when he was a student at harvard, the startup has raised $13.5 million in funding, including grants from the bill and melinda gates foundation, to help in the eradication of polio and measles. >> of polio patch that is heat polio patch that is heat stable and combines three dosages into one regimen, so we can get patients appropriate vaccination levels. caroline: they are partnering on new vaccines for herpes and prostate cancer and collaborating with m.i.t. the company plans to enter the clinic in early 2019. as for life after the harbored life lab -- >> we are happy to call massachusetts home. i think it is unmatched in terms
of talent availability, access to partnerships. it is unique ecosystem we have here. caroline: joining us now is the man behind the name of had lyrica -- of pagliuca harvard's life lab. steve pagliuca, here in part of harvard university. what made you fund the life lab that is the other key lab here? steve: when i was running for senate, one of my campaign promises was we would protect biotech here and life sciences. i wrote an editorial saying, we've really got to not let that leave, like technology left 20 years ago for silicon valley. we have a different structure here, the best universities, the best hospitals. that idea started five years ago. ns came up with the idea of building a facility that would allow these startups to stay here instead of leaf, -- leave, be cost-effective, and
try to grow companies. caroline: were you worried about a brain drain? steve: we could see it already in the tech industry. 25 years ago, we had digital equipment. many of the technology companies got bought and went to california. the mayor got involved. the governor. they promoted the life sciences. you can see the results of it now. caroline: it sounds as though innovators and entrepreneurs are committed to remaining in the area. whenrms of competition you're looking globally or in america, are there areas you feel you can harness the crown away from or have to fight off? is the talent pool rich enough? steve: i think the talent pool is probably the richest in the country here in the boston, massachusetts, area because of those universities, because of the hospital complex and the
technology we have here as well. i think we have the crown. we don't want to lose the crown. something like the life lab can really promote that. it gives easy access to companies. there are eight different schools that have access to the life lab. 15 businesses. you've just seen one that is very exciting with vaccination. all sorts of projects going on. when you have that kind of they vitality, they can start here and stay here. caroline: you know investing well being at bank capital. -- bain capital. is biotech an area you would want to see for future innovation, but also as a reward? steve: absolutely. there are many biotech funds, life sciences funds in the boston area. we have announced a large fund that will focus on a later stage than this. there is an ecosystem financially developed so these companies can get angel capital, then moved to venture capital, then move to private equity capital.
caroline: what about from a public point of view? there has been concern, particularly with the new administration in the white house, that the tap would be turned off slightly for biotech funding. what about longer-term? steve: hopefully the white house will look at this and see it's good for america and the economy. they certainly ran on that platform. secondly, we have been supported locally by our governor and our mayor. the mayor was here at the opening. the mayor and the at -- the entire administration of boston helped get this facility up in record time. the biotechnology council, harvard university, harvard business school, the community rapidly. came together 15 businesses already up and running. it's very exciting. caroline: what about diversity in terms of the pool of people you see here? is that something you have been able to prioritize? steve: absolutely. my wife was heavily involved.
she is a tech investor. my daughter-in-law is a cofounder of a biotech company. they got together and worked with the university here to make it very family-friendly. we have rooms for women, rooms for birthing mothers to bring kids, breast-feeding, all of the kinds of things to make it a very friendly and easy environment to work for everyone. caroline: fascinating. i will be digging into some of your investment theses. steve pagliuca, bain capital managing director, will be sticking with me. much more ahead from our special coverage in boston. we are also broadcasting on bloomberg radio at 1200 a.m. a d bloomberg is the official broadcasting media partner and cosponsor of the boston pops fireworks spectacular on july 4. this is bloomberg. ♪
caroline: we are live from the harvard university innovation lab, showcasing the power of boston's tech economy. tech hubs basis as a could not have happened without bain capital. with me is none other than the managing director and cochairman, steve pagliuca, also co-owner of the boston celtics. you have the shamrock on your tide today -- tie today. before we dive into the nba, i want to dive into some of your investment hypotheses at the moment. you're looking at stocks at record highs -- we are looking at stocks at record highs. what about private equity? steve: prices are high cyclically. we try to be disciplined in times -- terms of the deals we do. we are looking for transformational opportunities.
three of the big companies we have in the portfolio, we bought two companies at once and put them together to form a stronger, more strategic company on a global scale. looking at areas we know very well, technology, health care, industrial, consumer, we've had great success of that strategy -- with that strategy of being disciplined. you can take a long-term approach. totried to find -- we try find companies where we can invest in new products, where we can find a way to take them global. those are the opportunities we pursue. those are the only opportunities you can preserve -- pursue in a market where prices are fairly high. caroline: the us think we will see more m&a -- do you think we will see more m&a? do you think we will see more public companies becoming private again? steve: when you pay a premium and prices are already high, it
is difficult to make the numbers work in terms of private equity. there is a role for private equity in these transformations. these companies that have kind of lost their way and need a restart, they are companies that need a different approach. there are companies where you can transform by increasing the m&a process, by taking them private. so far, we have found plenty of those opportunities. we tried to be disciplined. so far, it's been a great result. caroline: talk about transformational opportunities. sports was a transformational opportunity when you took over the boston celtics. it's been a process of reinvigorating. opportunities did you apply to that? you are potentially in the run for champion. steve: it's been a great labor of love. with groesbeck, who i was able to partner with, we both came from a venture capital and operations perspective. we came in with a strategic plan
that involved three things. build awanted to championship team. that brings fans and excitement to the city. the second was we really wanted to improve the fan experience. the previous ownership had not invested in large jumbotron, had not invested in technology. the third was to make a community impact. we formed the boston celtics shamrock foundation. that foundation has become a leader in sports the p -- sports philanthropy. then finding a spectacular management team led by danny ainge -- just incredible -- has led to a championship in 2008. hopefully we are on the same path now. caroline: isaiah thomas has been someone who has been focused on. to withhold from offering him a longer-term contract? is that something you would be willing to do? steve: we don't talk about that.
danny ainge handles most of that. isaiah thomas has been a real profile in courage. i was able to go to the profiles encourage dinner on sunday night. you look at isaiah thomas. had a tragedy in his family, lost his teeth, and still playing for his teammates and his teammates playing for him. now, battling a great washington team. it's been very inspirational for me personally and the entire celtics family to watch isaiah fight through this and do it in such a professional and team-oriented way. it embodies everything you think -- the good things about the celtics. caroline: when you say you have tried to foster the community and make the fans so much more engaged -- many people are worrying about nba teams hogging the best players. how much does that affect the business of the nba? steve: your objective is to get the best players. there's nothing wrong with that. you have to plan for that. danny has done a fantastic job. he takes a five-year perspective
in terms of trying to build a championship team. we have a high draft choice. we have the highest probability to get the first pick through trades we pulled off. the combination of getting young players, getting free agents, and making beneficial trades can bring you a championship. danny seems to have found a great formula. one of the keys to the celtics' success is we have backed great folks. we have the same folks in place almost longer than anybody in the nba, and it has paid dividends. patience has paid dividends. caroline: good luck tonight. much more from boston, coming up next. this is bloomberg. ♪
intelligence committee hearing tomorrow in place of his former boss. that hearing is about current and projected security threats facing the country. president from fired james comey yesterday. today, president trump met with russian foreign minister sergey lavrov in the oval office. the white house says they talked about working together to end the conflict in syria, iran, and the violence in ukraine. members of the united nations security council want to know more about russia's peace plan for syria. russia agreed with turkey and iran to set up safe zones in an attempt to end the six year civil war there. must go once the u.n. to endorse the plan -- moscow wants the u.n. to endorse the plan. for the first time in two years, britain returned as the top people wanting to work abroad. the u.k. beat out germany.
to get to the u.k. before brexit and what may be tighter rules on immigration. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. it is just after 5:30 p.m. wednesday here in washington, already 7:30 thursday morning in sydney. we are joined by bloomberg's paul allen. he has a look at the markets for us. good morning, paul. paul: we are seeing a little thisgth on asx futures morning, up by about 12 points. the new zealand dollar has taken a steep fall in the past 30 minutes or so after the reserve bank of new zealand decided to keep the cash rate on hold at 1.75%, as expected. however, the bank saying it expect rates to remain accommodative for some time. in japan, nikkei futures looking mixed. looking toyota motors forecast operating profits of $14 billion in the
year to march. it's going to buy back $2.1 billion in shares. if there is a back-to-back decline in profit, that would be the first since 1994. in singapore, keep an eye on this group. first-quarter results are expected aftermarket. it could be a bit ugly. we are expecting a loss of $130 million on wrong way bets on coal prices. they have been struggling with changes in senior management and criticism over the way it handles some of its accounting methods. keep an eye on balance of payments for japan for the month of march. i'm paul allen in sydney. more from "bloomberg technology" next. caroline: this is "bloomberg technology." i'm caroline hyde. we are at harvard university innovation lab, one of the newer
buildings at this famous institution, designed to help its students collaborate and potentially come up with breakthrough ideas. just this week, it held its presidents innovation challenge. more than 200 student teams applied with their best ideas to solve social issues within the fields of health and life sciences. focusing on problems as varied bankruptcy.personal we sat down with harvard president drew faust to discuss how this place fosters innovation. >> i think we have such a vibrant innovation community in so many dimensions. it's exciting to see it growing. it's exciting to see the output. i think that having mark zuckerberg come back is going to be a great moment for everyone to celebrate him and to remind ourselves of the many ways in which we have been innovators and will continue to be innovators. caroline: looking at one of the ways you are innovators is ilab.
the fact that you have accelerators here, ways in which you can help foster growing businesses --how long has that been in play ? how has it helped build new companies coming out of harvard? ilab was founded in 2011 with the notion that providing people with space and support, things like venture funding, building companies, bringing ideas to the commercial world, with that kind of help, we could enable students and faculty to really follow their ideas and their dreams and make them tangible realities in the world. so, it's turned out to be a success beyond even our fondest dreams, as people have flocked to it. we now have more than 75 companies that have come out of the ilab. we have every year something called the president's challenge, which i sponsor. it is students and groups of students competing for funding to move their idea to the next phase.
that's always really exciting to see the things they have dreamed of and then to be able to pick some winners. caroline: you yourself are a historian by trade. how do you feel the multidisciplinary focus of harvard helps to foster this var ied group of technology companies? drew: when i think about history and innovation, i do think they are closely linked. i believe that understanding that things have been different enables you to think that they can be different again. if you just accept the status quo and don't understand what has led to the different paths that got you to the status quo, i think you are in him and it in your ability to figure out -- you are inhibited in your ability to figure out what made -- might take us new directions in the future. more generally, i think liberal arts and broad-gauged education stimulate ideas.
they challenge people to get out of their comfort zones. if i shift this perspective, what can i do differently? we see this in the ilab. many of the teams come together, darw -- draw on different individuals from different schools. they can think together about policy questions, regulation questions, organization questions, but maybe the product they are thinking about is a scientific project. someone from one of our science schools or departments will be part of that team. i believe that this wide-ranging approach enables people to think more ambitiously. caroline: we are talking about diversity here, aren't we? what about diversity of ethnic origin and, of course, we both sit here as females, women in engineering? this is something that the tech giants are struggling with, how to get enough women and diversity into their doors. is this something that you think i'm in through the ranks -- thi
nk coming through the ranks -- drew: we've seen a great growth in interest in stem education in harvard. we established our school of engineering as a school in its own right in 2007. since that time, we've had a tripling in the number of students who want to concentrate -- major in that area, but a quadrupling in the number of women who have gone into engineering. aboutat -- they make up 35% of our engineering concentrators. we think they should make up half, and we will keep striving for that. i do think this diversity relates to what you spoke about earlier, which is we have tried to say that engineering is a liberal arts field. whatever you think you might be interested in, engineering could have a place in that. if you're going to be a citizen of the 21st century, you need to understand technology. we have tried to cast a very broad and open gate. often in the past, science
studies challenged people by saying, if you are not going to be einstein, you don't belong here. we are going to flunk everybody out and make it really impossible for you to succeed. we have a completely opposite attitude, which is, come, try this out. we want to give you a path to succeeding because we think it is so important. i think that has helped us a lot in diversifying the students in the field. gender. goes beyond it includes ethnicity as well. caroline: what have you learned over the course of building up that diversity that you can give to business leaders that perhaps are still struggling and looking for ways in which to make sure they have more diversity? drew: rather than my giving pearls of wisdom, i think we can learn a lot from each other. i think partnership as we seek to understand how to nurture the kinds of attitudes and the kind of career choices and pathways that make these attractive to
students -- i think it is partly how we educate people and how we help them to understand what a career in science or technology could mean, but also how career opportunities are shaped, how companies recruit, how they support individuals. so, i would hope they could have a lot of back and forth and collaboration about those shared commitments to diversifying the workforce. caroline: that was drew faust, president of harvard university. now, let's check back in with our top story this hour. snap reporting 8 million new users were added in the first quarter, falling below expectations. shares tumbling more than 20% in wiping out trading, about 6.5 million -- $6.5 billion in market cap. evan spiegel commented about the interest in user growth. >> ultimately, i think the way we try to help people understand how we think about daily active user growth is through the lens of creativity and creation.
we built our entire business on creation. one of the things we talk about a lot is this idea that anytime someone creates a snap, they send it to their friend, which brings that friend into the snapchat ecosystem, for they added to their story, which contributes to time spent as they provide that content to all their friends. caroline: much more over that story throughout. much more from boston still to come as well. this is bloomberg. ♪
open to students across the university, it offers a unique space for collaboration. a key initiative is its venture incubation program. apply toester, teams participate in the 12-week program that combines mentorship, workshops, and introductions to funding to help move the startups further and faster. select teams move on to harvard's lynch -- launch lab. we got an inside look at one of the companies in the program. the harvard ilab helps students grow their startup. it's ad in 12 -- 2011, 12-week program that moves ventures further faster. one of them is shield ai. >> my combat experiences in afghanistan led me to found shield ai. it was basically a recognition, which a lot of people have, a lot of combat veterans have,
that technology could prove very useful on the battlefield if it was autonomous. caroline: brandon tseng founded shield ai in 2015. he is earning his mba from harvard business school. >> this drone is different from the others you see on the market today because it doesn't require a pilot. it is autonomous. they are following gps. our drone does not require gps to navigate. using simultaneous localization a lot ofng, which are the same technologies you see in driverless cars, it is able to navigate its environment and identify threats. caroline: the company has raised $10.5 million in funding. >> harvard's network is incredible he powerful. it allows you access to people with capital. caroline: and currently has contracts with the department of defense and the department of homeland security. shield ai exists in a
fast-growing market with competitors. the global market for commercial applications of drone technology, estimated at about $2 billion in 2016, will balloon to as much as $127 billion by 2020. shield ai plans to deploy its first product later this year. the mission is far from complete. >> down the road, there are certainly other applications, search-and-rescue, law enforcement are the first ones that come to mind, but there are other applications that are interesting. but we are really focused on our mission, protecting service members. caroline: now with more on how harvard's innovation labs are helping students, we are joined by the managing director, jodi goldstein. we are just hearing about drones. you've had 800 incubated here under your tenure. what areas of this -- of specialization? jodi: the theme is diversity and
breadth of ideas. up withventures coming new and novel ways to solve big problems in the world. caroline: let's talk about the diversity of that. where are your students building these businesses coming from? are they largely u.s. based? jodi: we are so fortunate to have the best and the brightest coming from all over the world to attend harvard. we support all 13 harvard schools. students are coming together to the ilab to collaborate. we nurture and support innovation. caroline: it's interesting that some of your better known alumni , mark zuckerberg, bill gates, dropped out the guys they had such good ideas. is this almost a way -- dropped out because they had such good ideas. is this almost a way to -- jodi: our reason to exist is to support and nurture innovation. a natural, happy byproduct is that students no longer need to
drop out. it's better if they stay in school. of resources and the community that they find here of like-minded entrepreneurs, coming from a diversity of backgrounds and skills and interests, allowing them to meet around a shared passion -- that's where innovation really happens. caroline: it is so hard to do when you have had 800 children grow through this. are there any real success stories outside of these hollowed walls that we would have heard of already -- these hallowed walls that we would have heard of already? jodi: so many of our ventures are actually going out into the world and have a lot of traction and have raised a lot of money and are on their way to success. we are super excited for them. caroline: i've heard of a couple. what about some of the pain points? you yourself were an entrepreneur. what do you find the aunt burners come to you with -- the entrepreneurs come to you most
for guidance? jodi: finding like-minded entrepreneurs, a supportive community that sits alongside the academic curriculum, giving them an opportunity to put their ideas to use, to iterate, to fail with no consequences. if we can help them do that while they are in school, get them further, faster, increase their likelihood of success by offering them access to resources, space, advisers, mentors, workshops i'm a skill building, we really do think that we can put them out into the world poised for success. caroline: six years and already 800. it's been great having you here. thanks for hosting us as well. jodi goldstein, managing director of the harvard innovation lab. coming up, robotics take center stage here in boston. i will sit down with the ceo of irobot, colin angle. this is bloomberg. ♪
welcome back to this special edition of "bloomberg technology." i'm caroline hyde. we are live from boston all this week, showcasing the innovation that the city's tech is bringing. robotic companies are combining -- in one product. one company doing just this is irobot. all-time high after the company updated its outlook for 2017. many people know you for the roomba, the robot that helps clean up your floor at home. how much has the boston ecosystem helped build the success story we are seeing here? colin: the innovation required
to go and create something as new as the roomba requires innovation, requires people with new ideas, and access to enough -- a body of talent to come in and go create these inventions. the boston educational system is second to none in the world, and we have been able to go harness students coming out, and here we are today. caroline: you also harnessed new board members. when you brought those new members on board, they were looking at internet of things. these were areas you said this is why you should have them on. what is next from irobot? colin: the smart home is becoming a very important thing. as more and more things get connected in our home, we have to deal with the question of how do we organize and control it. you might think that's an ai problem, but it's really not. it's a problem of understanding what's going on in the home so the house can do the right
thing. what's the point of understanding the sentence "please go to the kitchen and get me a drink" if you don't understand what the kitchen is? the role is to help the home understand itself so the smart home can actually be smart. caroline: your home can be smart in the united states. what about regional demand? are you seeing any hotspots pick up? colin: the extraordinary growth we are enjoying is broad-based. we are seeing growth in europe, growth in china is fantastic, and japan. one of the interesting things is one of our newest product launches, a floor mopping robot, is doing fantastic particularly in asia, where hard floors are far more common than here in the states. it has grown to outpacing the growth rates of roomba by significant margins in asia. caroline: a mopping robot -- get me one of them. we have dyson, a private
company. you went public back in 2005. there have been some activist investors who sometimes question the r&d. have you been able to commit to the development you really need? colin: the success of our strategy is evident in the success the company is enjoying. we can't just invest optimize for today. withed to go and come up the technologies that are going to allow the next generation and the next generation to truly differentiate ourselves from the competition. doing that as a public company is possible if you have investors who understand this, so that, yes, we need to invest in r&d. we need to develop a very exciting bottom line and growth rate. it's a balance of things, which i don't think is a bad thing. i think it can be successfully accomplished i attending to profitability, r&d, and growth
responsibly. caroline: you talked about the talent pool that is so well fed here in boston from the academic institutions. you've got offices in london and in asia. how are you talking to the institution -- how much is the government affecting your business divisions in the u.s. when it comes to talent pool, immigration? is that affecting your business at all? colin: it is something we watch very carefully and we are concerned about. thus far, nothing has happened that would dramatically impact our ability to operate. our international diversification is important. having engineering labs and capabilities outside the united states is something that is interesting for us to ensure that we have access to the global talent pool that innovative companies truly require. so far, so good, though. we have the majority of our resource and development here in boston and california. caroline: wonderful getting your
insight and expertise as to what boston has to offer you and how we can all keep our hands -- ho mes a little tidier with the help of the robot. that does it for this edition of "bloomberg technology." on thursday's program, we will be broadcasting from general electric's temporary headquarters after breaking ground this week on a brand-new complex in the heart of boston. we hear about the project from the cfo. this is bloomberg. ♪
announcer: from our studios in new york city, this is "charlie rose." we begin with latebreaking news from the white house. in a remarkable development, fbiident trump has fired director james comey. the white house said that the president acted on the clear recommendations of both the deputy attorney general and attorney general jeff sessions. the sudden firing raises a host of questions, including whether the firing is an attempt by president trump to influence the russian probe. it brings to an end what has been a turbulent year for the fbi chief and