Author : zebethcontrol

India metro smart cards vulnerable to ‘free top-up’ bug • ZebethMedia

By zebethcontrolPosted on November 3, 2022Posted in cybersecurity, india, metro, Security, smart cards, TransportationNo Comments

A smart card bug lets anyone ride the metro for free India’s mass rapid transit systems — or metro, as it’s known locally — rely on commuter smart cards that are vulnerable to exploitation and allow anyone to effectively travel for free. Security researcher Nikhil Kumar Singh discovered a bug impacting Delhi Metro’s smart card system. The researcher told ZebethMedia that the bug exploits the top-up process that allows anyone to recharge the metro train’s smart card as many times as they want. Singh told ZebethMedia he discovered the bug after inadvertently getting a free top-up on his metro smart card using an add-value machine at a Delhi Metro station. The bug exists, Singh says, because the metro recharge system does not properly verify payments when a traveler credits their metro smart card using a station add-value machine. He said that the lack of checks means a smart card can be tricked into thinking it was topped up even when the add-value machine says that the purchase failed. A payment in this case is marked as pending, and subsequently refunded, allowing the person to effectively ride the metro for free. “I tried it on Delhi Metro’s system and was able to get a free recharge,” Singh told ZebethMedia. “I still have to initiate a recharge by paying for it using PhonePe or Paytm, but because the recharge still remains pending, it will be refunded after 30 days. That is why it is technically free,” he said. Singh shared with ZebethMedia a proof-of-concept video he recorded in February showing how a smart card can be duped into adding value to a Delhi Metro card. After better understanding the bug, the researcher reached out to the Delhi Metro Rail Corporation (DMRC) a day later. In response, the DMRC asked Singh to share the details of the bug over email, which he did, along with a technical report and a log file demonstrating the bug in action, which ZebethMedia has seen. On March 16, Singh received a boilerplate reply, acknowledging the receipt of his email, but did not receive any further responses. Singh told ZebethMedia that the issue, which has not been fixed, exists in the smart cards themselves. Delhi Metro relies on MiFare DESFire EV1 smart cards manufactured by Dutch chipmaker NXP Semiconductors. Other metro systems, including Bengaluru, also use the same smart card system. “If the technical infrastructure is the same in other state metro trains, then this bug will work there too,” Singh told ZebethMedia. It’s not the first time security researchers have found issues with the same brand of smart cards. Past research found similar vulnerabilities affecting the same DESFire EV1 smart cards that Delhi Metro uses, as well as other European mass transit systems. In 2020, MiFare introduced the DESFire EV3 as its contactless solution with better security. Singh suggested that the smart card bug could be fixed if the metro systems migrate to DESFire EV3 cards. Three DMRC spokespeople did not answer multiple emails seeking comment. When reached, a spokesperson for NXP (via agency) was unable to provide comment by the time of publication. Bengaluru Metro Rail Corporation, the body responsible for the city’s metro service, also did not comment.

Aurora says it has enough cash to commercialize autonomous trucks by 2024 • ZebethMedia

By zebethcontrolPosted on November 3, 2022Posted in Aurora Innovation, autonomous freight, autonomous trucks, TransportationNo Comments

Autonomous vehicle technology company Aurora Innovation released its third-quarter earnings report after the bell Wednesday. The company closed out the quarter with about $1.2 billion in cash and short-term investments, which Aurora says will be enough to make it to commercial launch in mid-2024. Those statements were made just days after former competitor Argo AI shut down operations and Mobileye went public with the third most successful IPO of the year. Both moves are a sign that automakers that were once willing to invest billions into the development of AV tech without near-term profit gains are now turning their attention and resources back to near-term profit centers like advanced driver assistance systems in passenger-owned vehicles. So the question becomes, can Aurora hang on? Chief financial officer Richard Tame did say during the investor call that Aurora will need to raise more funds, but the company wouldn’t clarify to ZebethMedia if that would happen pre- or post-2024 launch. (However, in a memo leaked in September, CEO Chris Urmson wrote to Aurora’s board that there was value in finding a “path to raise $300 million in the next year to add around six months to our runway.”) Given the current economic situation and Aurora’s cash burn history, the company might be able to make it to 2024 with the funds it currently has, but only just — and only if it keeps costs in line. During the third quarter, Aurora’s loss from operations totaled $200 million, which is up from the $128 million reported during the same quarter of last year, but down from the nearly $1.2 billion in losses from the second quarter of 2022. If the startup were able to maintain a $200 million net loss starting in the fourth quarter until the first quarter of 2024, it wouldn’t need to raise more cash before commercial launch. But as a pre-revenue startup working on frontier technology, Aurora will incur tremendous costs in R&D to scale and bring its product to market. In addition, Aurora would need to somehow avoid being impacted by inflation and supply chain constraints. The upshot? Aurora will need to find efficiencies across the board. The leaked memo also outlined an array of cost-cutting and cash-generating options to Aurora’s board, including a hiring freeze, potential layoffs, spinning out assets, going private and even selling itself to high-profile tech companies. Aurora didn’t mention any of these potential realities during its earnings call, but that doesn’t mean they’re off the table. The Street responded favorably to Aurora’s attempts to assuage investors. The company’s stock is up 5.85% after market close. Aurora has prioritized commercializing autonomous freight through a series of pilot partnerships with FedEx, Paccar, Schneider, Werner and Xpress. But the company is also working with Toyota to eventually launch a subscription service for the ride-hailing market. Earlier this year, the company unveiled its test fleet of Toyota Siennas that were custom built for robotaxi operations. In the third quarter, Aurora recognized about $3 million in collaboration revenue from Toyota.

Fisker bumps up production for all-electric Ocean SUV • ZebethMedia

By zebethcontrolPosted on November 3, 2022Posted in electric vehicles, fisker, Fisker Ocean, Foxconn, magna, TransportationNo Comments

Fisker is raising its manufacturing forecast two weeks before its first electric vehicle, the Ocean SUV, enters production. The automaker plans to produce 42,400 Ocean SUVs by the end of 2023, up from an initial forecast of 40,000, due to strong demand in the U.S. and Europe. The company said it has received 62,000 reservations for the $37,499 Ocean and expects 80,000 orders by the end of the year, compared with an initial target of 50,000. That means that not everyone who has reserved an Ocean will receive one in 2023. “For us, I don’t see it as a bad thing because that means we’re fully booked out, which is great,” CEO Henrik Fisker told ZebethMedia. Many of those reservations came in August, shortly ahead of the passage of the Inflation Reduction Act, which eliminates the $7,500 federal tax credit for EVs built abroad. “It was a Friday when it looked like Congress would pass the bill, and I immediately got together with three executives and we said, ‘Hey, what can we do?’” Fisker said. The company scrambled to launch a redesigned website by Monday afternoon and put out a press release notifying customers they had a week to reserve the Ocean before losing eligibility for the tax credit. “We acted quickly and enabled Ocean reservation holders to enter into a binding contract to potentially retain eligibility for the old federal EV tax credit,” Fisker said. “In less than a week, we sold out our U.S. allotment of Ocean Sport and Ultra trim levels.” The Ocean will enter production in Graz, Austria, on November 17, the same day slated for the launch of its 3D configurator as well as updates to its mobile phone app and website. Fisker will deliver a fleet of 15 SUVs to partner Magna in December. Fisker said it is in discussions with potential partners to boost capacity mid-2024 by adding a U.S. production site. The automaker, which went public through a SPAC deal in 2020, reported a widening net loss of $149.3 million, or a .49 loss per share, for the quarter ended September 30. That compares with a net loss of $109.8 million, or a .37 loss per share, for the same quarter a year ago. Revenue for the third quarter was $14 million, slightly less than the $15 million it posted for the same period last year. During its quarterly earnings call on Wednesday, the automaker outlined its quarterly production plan for 2023. Fisker plans to build “more than 300” Ocean units by the end of the first quarter, 8,000 units in the second quarter, 15,000 in the third, and the balance of the remaining 42,400 units in the fourth. Fisker also said it is on track to start production of its second vehicle, the Fisker PEAR crossover, in 2024 with partner Foxconn at the former Lordstown Motors plant in Ohio. Foxconn purchased the site, originally a General Motors factory, from struggling EV startup Lordstown Motors in May. The company said it has received more than 5,000 reservations for the sub-$30,000 PEAR, an acronym for “Personal Electric Automotive Revolution.” A third model, a luxury GT sports car known internally as Project Ronin, is still in development, Fisker said.

Snap and Amazon partner on AR shopping in the Snapchat app, initially for eyewear • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in Amazon, Apps, Commerce, SnapNo Comments

Snap has landed a notable new partner for its augmented reality-powered Virtual Try-On shopping experience with today’s news that Amazon will now offer Snapchat users the ability to digitally try on eyewear styles from a range of popular brands. The new partnership between Amazon Fashion and the social app maker will see brands including Maui Jim, Persol, Oakley, Ray-Ban, Costa Del Mar and others made available for virtual try-on to Snapchat’s 363 million daily active users, the retailer says. The launch will see dozens of new Shopping Lenses made available across categories like sunglasses, reading glasses and seasonal glasses. The partnership is one of several that have followed Snap’s investments in AR shopping, where it has this year rolled out a number of upgrades to better appeal to retailers and brands, including the ability to update product information and pricing in real time, access better analytics and more easily create AR Shopping Lenses, among other things. Other brands that have leveraged Snapchat’s AR Shopping Lenses have included MAC Cosmetics, Ulta Beauty, American Eagle, Puma, Chanel, Walmart, LVMH, eyewear brands Goodr and Zenni Optical, and recently, for Halloween, costume company Disguise. Over the last year, Snap says 250 million Snapchat users have engaged with its AR Shopping Lenses more than 5 billion times. Image Credits: Snap/Amazon To create the AR shopping experience for Amazon, Amazon used Snap’s self-service creation system in Lens Web Builder, which allowed for scalable AR asset creation by using Amazon’s existing 3D models. If the Amazon products’ prices change or an item goes out of stock, the Lenses will be automatically updated in real time, notes Snap. Shopping Lens creation is an area where Snap has been working to improve its technology. Earlier this year it updated its Lens Web Builder that allowed bands to create shopping Lenses in a matter of minutes. This April, Snap announced it would begin offering retailers access to a new AR image-processing technology in its 3D asset manager that makes it easier and faster to build AR shopping experiences. The process uses AI and the brand’s own photography to turn standard photos into AR assets, Snap explained at the time. To access the new Amazon AR shopping feature, Snapchat users can find the new Lenses on the @amazonfashion public profile on the Snapchat app, through Snap’s Lens Explorer, through the new “Dress-Up” tab featuring AR shopping experiences and through the Snap Camera Lens Carousel. When users discover a pair of glasses they like, they can tap on a link at the bottom of the screen to make a purchase. This directs them to the Amazon app on their phone to check out. Snap does not receive a commission on these sales, we understand. Image Credits: Snap/Amazon Amazon also notes that Snapchat users will now be able to browse thousands of eyewear products in the Amazon Fashion “store” tab on its profile, though these will not be AR-enabled. Image Credits: Snap/Amazon While the AR shopping experience is starting with eyewear, it will be the first of more Amazon AR shopping experiences on Snapchat still to come. We understand the broader plan is to kick off the partnership with eyewear but expand into other categories in the months ahead. Snap also suggests this is the case in its public statement: “With the combined innovation and technology between Snap and Amazon, we are unlocking exciting and fun new try-on experiences for hundreds of millions of Snapchatters,” said Ben Schwerin, SVP of Partnerships at Snap, in an announcement. “AR eyewear is just the first step in our partnership, and we can’t wait to continue our innovation together,” he added. Amazon also noted it has already invested in AR shopping experiences itself and sees Snap as an extension of those efforts. “Millions of customers regularly use Amazon’s AR shopping technology across categories in our stores, with Virtual Try-On for Eyewear being a long-time customer favorite,” stated Muge Erdirik Dogan, president of Amazon Fashion. “We are delighted to partner with Snapchat and further expand AR shopping for both fashion brands and today’s new generation of digital shoppers.” Neither company would comment on the expected duration of their newly established partnership. This is not Amazon’s first foray into AR shopping. Recently, Amazon announced its own expansion in AR shopping with the June 2022 launch of a new virtual try-on experience for shoes, available to consumers in the U.S. and Canada in the Amazon iOS app. Using the feature, app users could shop for shoes from brands like New Balance, Adidas, Reebok, Puma, Saucony, Lacoste, Asics and Superga. Prior to this, Amazon had only dabbled in AR shopping, having experimented in areas like AR for furniture shopping and sillier things, like AR Stickers or AR features on its seasonal shipping boxes. It’s not clear if AR is leading to a sizable increase in conversions through Amazon’s own efforts, however, as we’d likely see more AR features if it had. That could be, in part, why Amazon is now looking to an outside partner for AR shopping — and one that appeals to a younger crowd more comfortable with using the technology and keen to browse and shop from a social media app.

Here’s what happened at Elon Musk’s meeting with civil rights leaders • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in content moderation, Elon Musk, Social, TwitterNo Comments

After meeting with a group of civil rights leaders about his content moderation plans, new “Chief Twit” Elon Musk has committed to uphold existing election integrity policies until at least after the results of next week’s U.S. midterm elections have been certified. According to statements from leaders who attended the meeting, the mogul said he will not reinstate previously banned Twitter users until there is a transparent process for doing so. Musk also committed to including representatives from groups that suffer from hate-fueled violence in his proposed content moderation council. “Twitter will not allow anyone who was de-platformed for violating Twitter rules back on [the] platform until we have a clear process for doing so, which will take at least a few more weeks,” Musk wrote in a tweet about the meeting. He did not elaborate on which users would qualify to be reinstated. Musk has not always followed through on promises he has made about his business plans, making it hard to take his plans at face value. But for now, he has claimed he won’t be making vital content moderation decisions alone. According to Musk’s tweets, his meeting included representatives from Free Press, the Asian American Foundation (TAAF), Color of Change, the NAACP, the Bush Center, the League of United Latin American Citizens (LULAC) and the Anti-Defamation League (ADL). ZebethMedia reached out to these groups to independently confirm their attendance; all but the Bush Center, LULAC and TAAF have confirmed thus far. “The NAACP met with Elon Musk to express our grave concerns with the dangerous, life-threatening hate and conspiracies that have proliferated on Twitter under his watch. According to a report, hate speech increased by approximately 500% in the first 12 hours following his acquisition. Now let that sink in,” said NAACP President Derrick Johnson in an emailed statement. “Nazi memes, racial slurs, and extreme far-right propaganda do not belong in the ‘town square’ of any democracy or online platform. […] In the immediacy, it is critical that Twitter’s existing election integrity policies remain in effect until at the very least after the midterm elections have been certified.” Multiple leaders present at yesterday’s meeting have been vocal critics of Musk’s ideas for Twitter. The CEO of the ADL, Jonathan Greenblatt, wrote a statement after Musk took leadership of Twitter on Thursday, expressing the organization’s concern about the safety of marginalized groups on the platform. “We are concerned that Mr. Musk’s acquisition of Twitter may accelerate what ADL has seen repeatedly: the pushing out of marginalized communities from social media,” the statement reads. “As with Telegram, Gab, Parler, Rumble, and other platforms that refuse to address incitement and slander in the name of free speech, such platforms have become hotbeds for radicalism and hate. This invariably reduces the diversity of views on these services and narrows rather than expands the public conversation.” This was certainly a productive meeting & I appreciate @ElonMusk’s willingness to hear our concerns. With these 3 commitments, we’re cautiously optimistic about the future of @Twitter & will provide input & insight whenever possible. Ultimately, actions speak louder than words. — Jonathan Greenblatt (@JGreenblattADL) November 2, 2022 After he and ADL Vice President Yael Eisenstat participated in the virtual call with Musk, Greenblatt said that he is “cautiously optimistic” about Musk’s promises. Free Press has also taken action to respond to Musk’s ownership of Twitter. Yesterday, Free Press and dozens of other civil society groups published an open letter, calling on top-20 advertisers to demand that Musk uphold the network’s existing content moderation policies. “These commitments are a good first step but really just the beginning of a long process,” wrote Free Press co-CEO Jessica J. González in a statement. “As the report Free Press published last week shows, hate, abuse and conspiracy theories are rampant on Twitter. There is much more to do to make Twitter a space for robust and healthy dialogue.” Musk had already stated that he wants to build a content moderation council, which will discuss issues like the ban on former President Donald Trump’s account, which Musk has said he believes was a mistake. Twitter permanently banned Trump’s account in the days after the insurrection at the U.S. Capitol because his tweets violated Twitter’s Glorification of Violence policy. Even though Musk claims he will not re-platform any banned users until a clear process is established, users are concerned about how these plans will impact vulnerable groups, like the LGBTQ community. Last week, Musk replied to a tweet from the daughter of academic and self-help author Jordan Peterson, who was suspended from the platform for deadnaming trans actor Elliott Page and calling Page’s surgeon a “criminal physician” over the summer. When she asked if he would bring her father back on the platform, he replied: “Anyone suspended for minor & dubious reasons will be freed from Twitter jail.” Even Senator Ted Cruz (R-TX) has tweeted at the SpaceX and Tesla CEO about reversing Peterson’s ban. Anyone suspended for minor & dubious reasons will be freed from Twitter jail — Elon Musk (@elonmusk) October 28, 2022 Even though Musk promised these civil rights leaders that his content moderation council will include members of groups who face hate-fueled violence, this claim is at odds with Musk’s recent platforming of anti-LGBTQ conspiracy theories. Musk’s own Twitter history doesn’t set a reassuring precedent either. In April, he posted a meme making fun of Twitter’s head of policy and trust, Vijaya Gadde (who he fired immediately upon securing his takeover). The post, which criticized her for having a left-wing bias, incited a torrent of abusive, racist tweets at the executive. Earlier this month, Musk also warmly welcomed Ye (formerly Kanye West) to Twitter after he was suspended from Instagram for posting antisemitic messages. But 12 hours later, Ye was suspended from Twitter as well — he had continued his antisemitic tirade on the platform now owned by Musk, threatening that he was “going death [sic] con 3 On JEWISH PEOPLE.” For the last week, Musk’s

Former Googlers raise more than $90M to scale alternative asset fintech startup • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in Daily Crunch, Startups, Venture, venture capitalNo Comments

To get a roundup of ZebethMedia’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here. Hellooooo, guess what? It’s November! We guess it was actually November yesterday, too, but we failed to notice, because LOL what even is time, amirite. Anyway, put away your Halloween costumes and start the game of How Long Can You Avoid “Little Drummer Boy”? If you do want to play that game, you’d be well advised to not click this link, although that’s a particularly tolerable version of the song, to be fair. Onward! — Christine and Haje The ZebethMedia Top 3 And for his next act…: Manish was on a roll again today, covering some cool stories. The first is on some former Googlers rallying around their peer Caesar Sengupta, who raised $90 million to scale Arta Finance, a company that will provide individuals similar access to alternative assets that are usually reserved for the ultrawealthy. Betting on web3: Manish’s second story is on Microsoft, which is backing South Korea–based web3 game developer Wemade. Come together, right now, in the cloud: Though many companies are asking employees to come back into the office, they and others are still figuring out how to keep distributed teams working as one. Former Yext CEO Howard Lerman thinks he has created the best option with Roam, a company that came out of stealth today with $30 million in new funding, Kyle reports. Startups and VC New data from more than 200 startups show that CTOs earn higher salaries than their CEO counterparts. Mostly, co-founders make the same, but where there is a difference, the balance typically tips in the favor of the technical co-founder, Haje reports. Also, we’ve got an eclectic mix of additional news for ya: Dear Sophie: How can students work or launch a startup while maintaining their immigration status? Image Credits: Bryce Durbin/ZebethMedia Dear Sophie, I’m studying bioinformatics at a university in the U.S. What options do I have to work before and after graduation on my student visa? Do any of these options allow me to launch my own startup? — Wanting to Work Three more from the TC+ team: ZebethMedia+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code “DC” for a 15% discount on an annual subscription! Big Tech Inc. Elon Musk met with civil rights leaders, and Amanda has all the details on what went down. Many of the leaders were concerned with content moderation, particularly dealing with increases in hate speech and undue influence on the midterm elections. Meanwhile, Natasha M writes that another Twitter executive is reportedly flying the coop. Meanwhile, Manish continues to follow the Byju’s saga. The latest is that India’s edtech giant is looking at a $1 billion IPO for Aakash, its physical tutor chain. And we have five more for you:

Instagram will soon allow select creators to make and sell NFTs directly in its app • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in Apps, Facebook, Instagram, meta, SocialNo Comments

Meta announced today that’s introducing a number of new creator updates across Instagram and Facebook. Most notably, the company revealed that creators on Instagram will soon be able to create their own NFTs and sell them directly to fans, both on and off Instagram. With this update, creators will have access to a toolkit that will help them create, showcase and sell NFTs. People on Instagram will be able to buy the NFTs directly within the app. Meta says the process will take place via traditional in-app purchases across iOS and Android. And for now, Instagram is not taking a cut of the creators’ revenues. Meta is testing this new feature with a small group of creators in the U.S. and plans to expand it to more countries in the future. Instagram is also adding support for the Solana blockchain and Phantom wallet, which join the blockchains and wallets that it already supports, including Rainbow, MetaMask, Trust Wallet, Coinbase Wallet, Dapper Wallet, Ethereum, Polygon and Flow. In addition, information for select collections where the metadata has been enriched by OpenSea, such as collection name and descriptions, will now be available on Instagram. In addition the NFT updates, Instagram is also expanding access to subscriptions to all eligible creators in the U.S. The social network began testing subscriptions in January with a small group of creators. The feature lets creators offer their followers paid access to exclusive Instagram Live videos and Stories. Subscribers also receive a special badge that helps them stand out in the comments section and creators’ inboxes. Meta also announced that Facebook is increasing access to Stars, which let creators earn money directly from followers on Reels, live and video on demand. Facebook is also going to start testing automatic onboarding for creators, which means that the ability to send stars will automatically appear on their content. Facebook is also bringing Stars to non-video content, such as photos and text posts. For creators who are already using Stars, Facebook is bringing Stars Party to reels. A Stars Party is a Stars community challenge that ends in a celebration if the creator reaches their goal, Meta says. The social network is also giving creators on Facebook more tools to engage with people who send Stars. For example, creators will be able to add a filter in Comments Manager that displays all of a creator’s Stars comments in one place, which will give creators the option to reply to multiple comments at once. Meta also announced that it’s introducing gifts on Instagram, starting with reels, to give creators a new way to earn money from their fans. The new feature lets fans send gifts on reels by purchasing Stars within Instagram. Meta is testing this feature with a small group of creators in the U.S. first, and plans to expand it to more creators soon. In addition, Meta is expanding its professional mode profile setting on Facebook to all creators. Professional mode is designed to be used by creators looking to monetize their followings on the social network. Facebook began testing professional mode with select creators in December 2021 and is now offering it to anyone on its platform. The new changes come at a time when Meta is investing in its creator user base, as it sees the potential in a new revenue stream that comes from things like creator subscriptions. With these new updates, Instagram is trying to shore up its platform against the threat of competition, namely from TikTok, which has attracted a growing number of creators. And as Meta continues to build the metaverse, it’ll need the support of creators, so it’s not surprising that it’s looking to broaden its offerings for creators.

HBO series ‘The Last of Us’ premieres this January • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in HBO Max, Media & Entertainment, streaming serviceNo Comments

“The Last of Us,” HBO’s upcoming original series, gets an official release date of January 15, 2023, WarnerMedia announced today. Based on the popular video game, the series will make its debut on HBO at 9:00 p.m. ET and then stream in 4K on HBO Max. It appears HBO Max is looking to compete with streaming giant Netflix, which has adapted many video game franchises into series such as “Arcane,” “Resident Evil” and “Witcher,” among others. While Warner Bros. Discovery last reported a total of 92.1 million subscribers across HBO, HBO Max and Discovery+, the company still lags behind Netflix’s whopping 223.09 million subs. “The Last of Us” is likely HBO Max’s chance to pull in fans of the game to subscribe to the streaming service. The video game launched in 2013 and 17 million copies were sold across PlayStation 3 and PS4 users in 2018. The series will feature a ton of familiar characters from the game, such as Joel, who’s played by Pedro Pascal, and Ellie played by Bella Ramsey, along with Tommy (Gabriel Luna), Tess (Anna Torv), Sarah (Nico Parker), Frank (Murray Bartlett), Bill (Nick Offerman), Kathleen (Melanie Lynskey), Florence (Elaine Miles), Riley (Storm Reid), Perry (Jeffrey Pierce), Henry (Lamar Johnson), Marlon (Graham Greene) and more.

Roku drops ~19% as it braces for a bumpy fourth quarter • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in Hardware, Media & Entertainment, rokuNo Comments

As advertisers pull back on spending and supply chain disruptions persist, investors have braced themselves for an unpleasant quarter for Roku. And investors are probably right to be worried. Roku released its fiscal third-quarter earnings results on Wednesday, revealing that it is still experiencing slow growth in active accounts and revenue in a continuously challenging environment. The company also warned investors of a weak fourth quarter, telling shareholders it expects total net revenue of about $800 million, or a 7.5% decline year over year. Roku shares dropped nearly 19% in after-hours trading once investors saw the fourth quarter guidance. “As we enter the holiday season, we expect the macro environment to further pressure consumer discretionary spend and degrade advertising budgets, especially in the TV scatter market. We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound. We, therefore, anticipate Q4 Player revenue and Platform revenue to be lower year over year,” the company wrote in its letter to shareholders. And while Roku reported a total net revenue that beat expectations, the results are still much lower than in the past. Roku noted that its total revenue grew 12% year over year to $761 million, above its own expectation of $700 million. Analysts predicted Roku’s total revenue to reach $696 million this quarter. “Platform revenue grew 15% year over year, which was lower than our historical growth rates but positive given the difficult macro environment. Advertising spend on our platform continues to grow more slowly than our beginning-of-year forecast due to current weakness in the overall TV ad market, and the ad scatter market in particular,” the company said. Roku missed revenue expectations last quarter and reported a total net revenue of $764 million, which was $41 million less than Wall Street’s expectations. The company blamed the slowdown in TV ad spending for missing the mark. Meanwhile, the company also reported a net addition of 2.3 million incremental active accounts in Q3, bringing the total to 65.4 million, up from 61.3 million active accounts in the second quarter. Roku also had total streaming hours of 21.9 billion, up 1.1 billion from last quarter. Its free streaming service, The Roku Channel, saw a jump in streaming hours of 90% year-over-year. Roku continues to invest in The Roku Channel. Just this past month, the company launched the streaming service in Mexico, which marked a significant move for the service. Previously, The Roku Channel was only available in the U.S., the U.K. and Canada. The Roku Channel also launched 14 new linear channels through its Live TV Guide and added Paramount+ as a new premium subscription option. Roku tries to be smart(er) Roku made a bold move last month by stepping into the connected home space with the launch of various smart home devices. The Roku Smart Home lineup includes security cameras, video doorbells, smart lights and voice-enabled smart plugs. With Google and Amazon already in the smart home market, it’s likely Roku doesn’t anticipate becoming the first choice for consumers. Still, it makes sense for the company to finally monetize the smart home experience to the many consumers that already have Roku smart TVs in their homes. During a conference call with reporters, Roku chief financial officer Steve Louden said: “Expanding into the smart home ecosystem is a natural extension for Roku. Obviously, we’re a leading TV streaming platform, and smart TV is usually at the center of someone’s smart household. It’s a good extension to leverage our existing 65 million active accounts.” The company added in its letter that it’s still “early days,” but Roku has the “necessary technology and expertise in hardware, software, and connectivity to deliver a smart home ecosystem that is simple, powerful, and delightful.” Roku also recently launched the 2022 version of the Roku Express streaming player, a Roku Wireless Bass, as well as its software update, Roku OS 11.5, which includes new features like a universal watch list, a “continue watching” feature and a discovery hub that features short-form content.

Digital bank Chime is cutting costs across the board

By zebethcontrolPosted on November 2, 2022Posted in Chime, Fintech, Layoffs, StartupsNo Comments

Digital bank Chime confirmed today that it is laying off 12% of its workforce, or about 160 people. The Information first reported the news. According to an internal memo obtained by ZebethMedia, Chime co-founder Chris Britt described that the move was one of many that would help the company thrive “regardless of market conditions.” In the memo, Britt said that he and co-founder Ryan King are re-calibrating marketing spend, decreasing the number of contractors, adjusting workspace needs and renegotiating vendor contractors. “The changes will help, but we also need to adjust the size of our organization as we increase our focus and forge our path to profitability,” Britt wrote in the memo. Chime was notoriously one of the first neobanks to hit EBITDA profitability, a milestone it shared when it hit $14.5 billion two years ago. Its latest public valuation was $25 billion. Since its 2012 inception, Chime has raised a total of $2.3 billion in funding, according to Crunchbase. Sure enough, the co-founder added that the startup is “well-capitalized” but the financial market uncertainty was a factor in these changes. A spokesperson for Chime reiterated this perspective, adding over email that “as we look at current market dynamics, we are adjusting our organization to be fully aligned with our company priorities. As a result, we are eliminating some positions, while still hiring to select others.” The spokesperson did not immediately respond to other questions regarding severance details, the impact on C-level executives and salaries, as well as the profitability of the company. The company’s memo, along with the fact that Chime has paused its public debut plans, suggests that growth trends may have changed – a fate other fintechs have been similarly dealing with. Most recently, corporate spending startup Brex cut 11% of staff after being valued at $12.3 billion earlier this year, also citing the challenging macroeconomic environment. Still, broadly speaking, the tide is somewhat shifting on the cadence of tech layoffs. According to layoffs.fyi, nearly 70% of people who have been laid off this year lost their jobs during May, June, July and August. Since the summertime of sadness, staff cuts have decreased. September had half the number of layoff events than August, and in October, new layoff events slowed while people impacted slightly inched upward from August. While November is off to a not-so-great start, considering Chime’s cuts and Opendoor’s 18% reduction that happened just hours ago, the data brings some hope.