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PSQ (PSQH) - 2024 Q2 - Earnings Call Transcript
PSQHPSQ (PSQH)2024-08-14 14:42
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Financial Data and Key Metrics - Net revenue in Q2 2024 increased by 1,030% compared to Q2 2023, while cash flow operating expenses rose by only 49% [5] - Net revenue increased by 73% quarter-over-quarter to 6millioninQ22024,upfrom6 million in Q2 2024, up from 3.5 million in Q1 2024 [6] - Gross margin improved to 67% in Q2 2024, compared to 43% in Q1 2024 [6] - The company generated 7,000inrevenuein2021,7,000 in revenue in 2021, 475,000 in 2022, 5.7millionin2023,and5.7 million in 2023, and 6 million in Q2 2024 alone [8] Business Line Data and Key Metrics - The marketplace, launched in July 2022, has helped millions of Americans find small businesses with impactful stories and high-quality products [9] - EveryLife, the pro-life and pro-family baby brand, generated over 7.5millioninsalesinitsfirst12monthsanddonatedover1.5milliondiapersthroughtheBuyforaCauseprogram[10]−ThecompanyacquiredCredova,afinancialtechnologyfirmfocusedonsupportingthegunindustry,tobuildoutitspaymentsbusinessunderthePublicSquarebrand[12][13]MarketDataandKeyMetrics−Thecompanyistargetingafamilyvalues−oriented,patrioticaudiencewithinitiativeslikeabrandeddigitalwallet,userrewards,andfinancingoptions[14]−Thepaymentstack,launchedinAugust2024,hasover7.5 million in sales in its first 12 months and donated over 1.5 million diapers through the Buy for a Cause program [10] - The company acquired Credova, a financial technology firm focused on supporting the gun industry, to build out its payments business under the PublicSquare brand [12][13] Market Data and Key Metrics - The company is targeting a family values-oriented, patriotic audience with initiatives like a branded digital wallet, user rewards, and financing options [14] - The payment stack, launched in August 2024, has over 200 million in annualized GMV in payments processing volume under contract, with a line of sight to 1billionbythe2024Christmasshoppingseason[15]CompanyStrategyandIndustryCompetition−Thecompanyisconsolidatingitsbranding,marketing,andproductfeaturesunderthePublicSquarename,sunsettingtheCredovabrand[13]−Thecompanyisfocusingoncostsavings,streamlinedmessaging,andmoreeffectivecustomerandmerchantacquisitionthroughreallocatingandconsolidatingresources[14]−Thecompanybelievesitsstockisundervalued,tradingat6timestrailing12−monthsalescomparedtoindustrycompstradingat8to9timesforward−yearsales[16][17]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Thecompanyisconfidentinitslong−termvisionandbelievesithasbarelyscratchedthesurfaceofitsbusinesspotential[8]−Managementiscommittedtoexecutingwiththelonggameinmind,withkeyexecutivesandboardmemberslockinguptheirsharesforanother12months[18]−Thecompanyismoreconfidentthaneverinitsbusinessfundamentalsandinvitesnewinvestorstojoinitsjourney[18]OtherImportantInformation−Thecompanyannounceda1 billion by the 2024 Christmas shopping season [15] Company Strategy and Industry Competition - The company is consolidating its branding, marketing, and product features under the PublicSquare name, sunsetting the Credova brand [13] - The company is focusing on cost savings, streamlined messaging, and more effective customer and merchant acquisition through reallocating and consolidating resources [14] - The company believes its stock is undervalued, trading at 6 times trailing 12-month sales compared to industry comps trading at 8 to 9 times forward-year sales [16][17] Management Commentary on Operating Environment and Future Outlook - The company is confident in its long-term vision and believes it has barely scratched the surface of its business potential [8] - Management is committed to executing with the long game in mind, with key executives and board members locking up their shares for another 12 months [18] - The company is more confident than ever in its business fundamentals and invites new investors to join its journey [18] Other Important Information - The company announced a 10 million convertible note investment to supercharge the launch of its payment stack [15] - The company does not believe the current stock price accurately reflects its business, citing a disconnect between its growth and market valuation [16][17] Summary of Q&A Session - No formal Q&A session was held during the call, but management addressed shareholder questions submitted through the Safe Technologies platform throughout the presentation [4]