Q1 2024 PSQ Holdings Inc Earnings Call
Operator: Greetings and welcome to Public Square's first quarter 2024 earnings conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, William Kent, Vice President of Investor Relations. Thank you. You may begin.
Great piece.
Speaker Change: Welcome to the public's class first quarter 2020 for earnings conference call and webcast. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
Speaker Change: And why should require operator assistance during the conference. Please press star zero on your telephone Keypad I started my during this conference is being recorded it is now my pleasure to introduce your host William Kent, Vice President of Investor Relations. Thank you you may begin.
William Kent: Thank you, Dee. Good morning, everyone, and welcome to Publixquare's first quarter 2024 earnings conference. Joining me today are Michael Seifert, Chairman and Chief Executive Officer, and Brad Searle, Chief Financial Officer, of PublicSquare. The information discussed today is qualified in its entirety by Form 8K and Form 10Q, followed today by PublicSquare, which may be accessed on the SEC's website or PublicSquare's website. Today's call is also being webcast, and a replay will be posted on Public Square's Investor Relations website.
Dave: Thank you Dave Good morning, everyone and welcome to public square its first quarter 2024 earnings Conference call. Joining me today are Michael <unk>, Chairman and Chief Executive Officer, and Brad <unk>, Chief Financial Officer, a public square.
The information discussed today is qualified in its entirety by form 8-K, and Form 10-Q filed today by public square, which may be accessed on the Sec's website or public squares website. Today's call is also being webcast and a replay will be posted to public squares investor Relations website.
William Kent: Please note that statements made during today's call, including financial projections or other statements that are not historical in nature, may constitute forward-looking statements... Such statements are made on the basis of Public Square's views and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update these statements. Forward-looking statements are subject to risks that could cause Public Square's actual results to differ from its historical results and forecasts, including those risks set forth in Public Square's filing with the SEC.
Dave: Please note that statements made during today's call, including financial projections or other statements.
Dave: Or are not historical in nature may constitute forward looking statements.
Dave: Such statements are made on the basis of public squares views and assumptions regarding future events and business performance at the time. They are made and we do not undertake any obligation to update these statements.
Dave: Forward looking statements are subject to risks that could cause public squares actual results to differ from its historical results and forecast, including those risks set forth in public squares filings with the SEC and you should refer to and carefully consider those for more information. This cautionary statement applies to all forward looking statements made during this call you should not place undue reliance on any forward looking statements.
William Kent: And you should refer to and carefully consider those for more information. This cautionary statement applies to all forward-looking statements made during this call. Do not place undue reliance on any forward-looking statements. During this call, we may refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with GAAP or generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is available to companies in their quarterly filing today with the SEC. I'll now open the call to Michael. Michael, please go ahead.
Dave: During this call we may refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with GAAP or generally accepted accounting principles a reconciliation.
Dave: GAAP financial measures to the most directly comparable GAAP measures is available in the company's quarterly filing today with the SEC.
Speaker Change: I will now open the call to Michael Michael. Please go ahead.
Speaker Change: Wonderful Thank you will.
Speaker Change: And thank you to everyone for joining our call today. The first quarter of 2024 was our most monumental quarter yet building upon the strength, we have witnessed since launching our core marketplace platform nationwide at nearly two years ago and it's been a wild ride over the last two years since July 4th of 2022 when.
Michael Seifert: The first quarter of 2024 was our most monumental quarter yet, building upon the strength we have witnessed since launching our core marketplace platform nationwide nearly two years ago. It has been a wild ride over the last two years since July 4th, 2022 when we launched our core platform nationwide, and we are just getting started. So, to jump in for a few details from this first quarter of 2024,
Speaker Change: We launched our core platform.
Michael Seifert: As a highlight, we saw net revenue increase 9.2x while cash flow from operating expenses rose 2.2x compared to the first quarter of 2023, showcasing the fact that our business is trending in an incredible fashion toward a profitable and sustainable path of growth. So again, we saw net revenue increase over 9x from Q1 2023, while cash flow from operating expenses only rose just over 2X compared to Q1. More specifically, we increased net revenue in Q1 by 817 percent to 3.5 million compared to the first quarter of 2023.
Speaker Change: And wide and we are just getting started so the jump in for a few details.
Speaker Change: From this first quarter of 2024.
Speaker Change: As highlights we saw net revenue increased nine point to ask while cash flow from operating expenses.
Speaker Change: Rose to two <unk>.
Speaker Change: Compared to the first quarter of 2023, showcasing the fact that our business is trending and an incredible fashion toward a profitable and sustainable path of growth. So again, we saw net revenue increase over nine acts from Q1 2023, while cash flow from operating expenses only rose just over two acts compared.
Speaker Change: <unk> Q1 of 2023.
Speaker Change: More specifically, we increased the net revenue in Q1 by 817% to $3 5 million compared to the first quarter of 2023, and even more impressive pro forma first quarter net revenue was greater than all of 2023 net revenue. So on a pro forma basis Q1 net revenue.
Michael Seifert: And even more impressive, pro forma first quarter net revenue was greater than all of 2023 net revenue. So, on a pro forma basis, Q1 net revenue was 6.4 million, including Cordova, which is 12.2 percent greater than the entire 2023 PSQH net revenue. For the Marketplace segment, we increased our revenue by over 150% compared to the first quarter of 2023. And, obviously, the revenue is indicative of greater traffic and heavier usage.
With $6 4 million, including Cordoba, which is 12, 2% greater than the entire 2023, EPS Q H net revenue.
Speaker Change: For the marketplace segment, we increased our revenue by over 150% compared to the first quarter of 2023, and obviously the revenue is indicative of greater traffic and heavier usage our marketplace monthly average users in Q1 increased by 314% compared to the first quarter of <unk>.
Michael Seifert: Our Marketplace monthly average users in Q1 increased by 314% compared to the first quarter of 2023. And for our brand segment, EveryLife, our life-affirming baby brand subsidiary, contributed over $2.1 million in net revenue for the first quarter of 2024. And for the most exciting statistic from EveryLife's perspective, 75% of that revenue was actually subscription-based. We love these recurring customers, and we're grateful for their building the community at EveryLife with us.
Speaker Change: 1023.
Speaker Change: And for our brand segment every life, our life affirming baby brand subsidiary it contributed over $2 1 million and net revenue for the first quarter 2024 and for the most exciting statistic from every perspective, 75% of that revenue was actually subscription based we love these recurring customers and we're grateful.
Speaker Change: For their building of the community at every life with us.
Michael Seifert: Notably, during the quarter, we acquired Cordova, a buy-now-pay-later and business finance solution, and announced the development of PSQ Payments, our pro-freedom, tech-forward payment stack. We also hired Brian Billingsley, the former CEO of Klarna North America, to expedite PSQ Payments, a service that our consumers and merchants have repeatedly expressed interest, And with these two important strategic business decisions, again, the acquisition of Cordova, the leading buy-now-pay-later and finance solution for the shooting sports industry, as well as the development of our payment stack, we have moved decisively down the road to owning the infrastructure of the parallel economy to serve this TAM that we believe is over 100 million Americans who have long been left unaddressed by the existing incumbent corporate institutions.
Speaker Change: Notably during the quarter, we acquired <unk>, a buy now pay later and business finance solution and announced the development of <unk> payments are pro Freedom Tech forward payment stack. We also hired Brian Billingsley, the former CEO of <unk>, North America to expedite <unk> payments, a service that our consumers and merchants have repeatedly.
Speaker Change: Expressed interest in and with these two important strategic business decisions again, the acquisition of <unk>, the leading buy now pay later and finance solution for the shooting sports industry as well as the development of our payment stack. We have moved decisively down the road to owning the infrastructure of the parallel economy to serve this Tam that we believe is over one.
Speaker Change: Hundred million Americans, who have long been left unaddressed by the existing incumbent corporate institutions, we built the customer acquisition vertical through our marketplace and through our brand and now it's time to own the infrastructure underneath this parallel economic ecosystem through the building of our Fintech Division. We also took steps in the quarter to redefine public score.
Michael Seifert: We built the customer acquisition vertical through our marketplace and through our brands, and now it's time to own the infrastructure underneath this parallel economic ecosystem through the building of our FinTech division. We also took steps in the quarter to redefine PublicSquare broadly as a holding company that strategically unites key products and services, forming the backbone of this parallel economic ecosystem. The holding company, more specifically, is divided into three distinct segments.
Speaker Change: Broadly as a holding company that strategically unites key products and services, forming the backbone of this parallel economy ecosystem the holding company.
Speaker Change: Specifically is divided into three distinct segments, we have the marketplace. So our core business public square, we have the financial technology.
Michael Seifert: We have the marketplace, so our core business is PublicSquare. We have the financial technology division, mainly Cordova and PaymentStack, and then our brands segment today that exists as EveryLife, DSQLink, as well as a new consumer product brand in the feminine care space launching in Q3. More on that in a moment.
Speaker Change: Mainly cordoba and payments Sac and then our brands segment.
Speaker Change: Today that exist as every life <unk> link as well as a new consumer product brand and the feminine care space launching in Q3 more on that in a moment.
Michael Seifert: Again, back to the Marketplace. During the quarter, the Marketplace segment made accelerated progress on our e-commerce platform, launching functionality like automatically applied discount codes and enhanced search, among many other user experience upgrades, all accomplished well ahead of schedule. As a sub-event, we recently launched PublicSquare Live, a live shopping experience where our consumers can meet the founders and creators of PublicSquare businesses and receive exclusive discounts on their products. And this program is actually hosted by former QVC host Erin Elmore. She's a dedicated patriot, a very talented on-air personality, and has quite a bit of experience in the live shopping world.
Speaker Change: Again back to the marketplace during the quarter. The marketplace segment made accelerated progress on our e-commerce platform launching functionality like automatically apply discount codes and enhanced search among many other user experience upgrades all accomplished well ahead of schedule.
Speaker Change: As a sub event, we recently launched public square live a lot type shopping experience, where our consumers can meet the founders and creators and public square businesses and receive exclusive discounts to their products and this program is actually hosted by former QVC host Erin Elmar, She's a dedicated Patriots a very talented on air personalities.
Speaker Change: <unk> and has quite a bit of experience in the live shopping world. This program. During its inaugural debuted on May 11th. So just a few days ago drove the highest total online orders toward our platform for one day since our marketplace launch exceeding even black Friday 2023.
Michael Seifert: This program, during its inaugural debut on May 11th, so just a few days ago, drove the highest total online orders toward our platform for one day since our marketplace launch, exceeding even Black Friday 2023. I'm blown away by what our Marketplace team has accomplished in the last year, and I cannot wait to witness all that the next year has in store for our core platform as we execute our product roadmap. In the Financial Technology Division, we are making a strong and expedited push into the fintech space.
Speaker Change: I'm blown away by what our marketplace team has accomplished in the last year and I cannot wait to witness all that next year has in store for our core platform as we execute our product roadmap and the financial technology that we are making a strong an expedited push into the fintech space, our consumers and merchants are demanding and have demanded fintech solutions that are protecting.
Michael Seifert: Our consumers and merchants are demanding and have demanded FinTech solutions that are protecting their freedoms and fundamentally values-aligned. During the quarter, we notably acquired Cordova, the profitable leading buy-now-pay-later company for the shooting sports industry, and as I mentioned, we hired Brian Billingsley, former CEO of Klarna North America, to help bring this vision into reality. We are dedicating significant resources to this division and expect to launch our payment stack with certain key accounts in tandem with our Cordova offerings in the third quarter of this year.
Speaker Change: Their freedoms and fundamentally values aligned during the quarter, we notably acquired crude or other profitable leading buy now pay later companies in the shooting sports industry and as I mentioned, we hired Brian Billingsley, former CEO of corn in North America to help bring this vision into reality, we are dedicating significant resources to the division and expect to launch our payment stack with certain key.
Speaker Change: Accounts in tandem with our Cordova offerings in the third quarter of this year.
Michael Seifert: On the brand front, EveryLife, our wholly-owned baby care subsidiary, continues to grow dramatically as the brand's life-affirming message resonates with our core consumer base. As I mentioned, we're seeing strong subscription revenue, which was 75% of our total revenue during the quarter, and we will soon be expanding the EveryLife product portfolio in the third quarter of this year with the launch of soaps and lotions. Now another item to note, as I mentioned, is that we actually announced in our earnings release this morning the launch of a new feminine care brand in the second half of this year. This brand will bring high-quality feminine care products and an elegant and impactful message that celebrates femininity and womanhood to our core female customer base, many of whom are also existing every-life consumers.
Speaker Change: On the brand front every life, our wholly owned baby care subsidiary continues to grow dramatically as the brand's life affirming message resonates with our core consumer base as I mentioned, we're seeing strong subscription revenue, which was 75% of our total revenue during the quarter and we will soon be expanding that every life product portfolio in the third quarter. This year with the launch of soaps and lotions.
Speaker Change: Now another item of note as I mentioned is that we actually announced in our earnings release. This morning, the launch of a new feminine care brand in the second half of this year. This brand will bring high quality of feminine care products in an elegant and impactful message that celebrates femininity and women head to our core female customer base. Many of whom are also existing every life.
Michael Seifert: So, as we're nearing the end here, as we look out into the remainder of 2024, we expect continued growth among all our verticals, marketplace, finance, financial technology, and our brand segment as we pursue the ongoing transformation of PublicSquare into a true holding company model that leverages the economic power of our total addressable market. Our payment stack represents the next step in our journey, and we'll be dedicating significant internal resources to developing and launching the service that our consumers and merchants have demanded.
Speaker Change: Consumers.
Speaker Change: So as we're nearing the end here as we look out into the remainder of 2024, we expect continued growth among all our verticals marketplace financials financial technology, and our brand segment as we pursue the ongoing transformation of public square into a true holding company model that leverages, the economic power of our total addressable market.
Speaker Change: Our payment stack represents the next step in our journey and we will be dedicating significant internal resources to developing and launching the service that our consumers and merchants have demanded we continue to believe all signs are pointing in an increasingly positive direction and we reaffirm our belief that we are just getting started so before I hand, it over to Brad.
Michael Seifert: We continue to believe all signs are pointing in an increasingly positive direction, and we reaffirm our belief that we are just getting started. So, before I hand it over to Brad, our CFO, I have one housekeeping item. I am happy to announce that Mike Hebert, our Chief People Officer for the last year or so, has been promoted to Chief Operating Officer of PublicSquare PSQ Holdings as of this morning.
Brad Searle: Mike, congratulations. The team looks forward to your continued positive contribution to the business and our continued shared success. Onward and upward, my friend. Now I'd like to hand it over to our CFO, Brad Thurl, to discuss a few items on the financial side, including our updated 2024 financial outlook. Without further ado, Brad. Thank you.
So I have one housekeeping item I am happy to announce that Mike <unk>, our chief people officer for the last year.
Speaker Change: Has been promoted to chief operating officer of public Square SKU Holdings as of this morning, Mike Congrats on that.
Brad: We look forward.
Speaker Change: <unk> positive contribution to the business and our continued shared success onward and upward and my friend.
Speaker Change: Now I'd like to hand, it over to our CFO, Brad Farrell to discuss a few items to note on the financial side, including our updated 2024 financial outlook without further Ado breath.
Brad Searle: Michael, congratulations, Mike, and good morning, everybody. I'm thrilled to be with you here today to discuss our first quarter 2024 results. I'd like to present a few items to note from the quarter. First off, as Michael mentioned, we increased net revenue by 817% to $3.5 million compared to the first quarter of 2023. Also, on a pro forma basis, meaning if we had included all of Cordova's Q1 net revenue, our Q1 net revenue would have been $6.4 million, which is 12.2% greater than the 2023 net revenue figure we reported in our 2023 10-K.
Brad Searle: I would like to point out that in Q1, we incurred $5.9 million in share-based compensation expenses, as well as $2.3 million in one-time transaction costs related to the Cordova transaction during the first quarter. In terms of the share count, as of 3-31-24, we had $28,177,917 Class A common shares outstanding and $3,213,678 Class C common shares outstanding.
Brad Farrell: Michael Congratulations Mike and good morning, everybody I'm thrilled to be with you here today to discuss our first quarter 2024 results I'd like to present, a few items to note from the quarter. So first off as Michael mentioned, we increased net revenue by 817%.
Brad Farrell: $3 5 million compared to the first quarter 2023.
Brad Farrell: Also on a pro forma basis, so meaning if we had included all of <unk> Q1 net revenue.
Brad Farrell: Our Q1 net revenue would have been $6 4 million.
Brad Farrell: Which is 12, 2% greater than the 2023 net revenue figure we reported on our 2023 and 10-K.
Brad Farrell: I'd like to point out that in Q1, we incurred $5 9 million in share based compensation expenses as well as $2 3 million in one time transaction costs related to the Qdoba transaction during the first quarter in terms of share count as of $3 31, 24, we had $28 million 170 <unk>.
Brad Farrell: 7917 class, a common shares outstanding and $3 million and 213678 class C common shares outstanding.
Brad Searle: And we ended the first quarter of 2024 pro forma for the previously announced insider affiliate investment with $19.3 million in cash, of which $0.2 million was restricted cash. So, before I hand the call back to Michael, I will cover the updated outlook for 2024 we provided in this morning's release. First, in terms of revenue, our guidance from March 14, 2024 remains unchanged. We are guiding to a year-end 2024 exit run rate revenue of approximately $47 to $53 million.
Brad Farrell: And we ended the first quarter of 2020 for pro forma for the previously announced inside our affiliate investment with $19 $3 million in cash.
Brad Farrell: Which 0.2 million was restricted cash.
Speaker Change: So before I hand, the call back to Michael I'll cover cover the updated outlook for 2024, we have provided in this morning's release.
Michael: First in terms of revenue our guidance from March 14th 2024 remains unchanged. We are guiding to a year end 2024 exit run rate revenue of approximately 47% to $53 million.
Brad Searle: Moving on to profitability, Cordova is expected to remain cash flow positive in 2024. We expect EveryLife to reach and maintain cash flow positivity by the end of 2024, and we intend to prioritize the resourcing and growth of PSQ payments, led by former CEO of Klarna North America, Brian Billingsley. Lastly, in regards to our cash position outlook, we expect to exit 2024 with approximately $8 to $10 million of cash on the consolidated balance. I will now hand the call back to Michael for some closing remarks and Q&A. It was wonderful.
Michael: Profitability Qdoba is expected to remain cash flow positive in 2024, we expect every life to reach and maintain cash flow positivity by the end of 2024, and we intend to prioritize the resourcing and growth of PSU payments led by former CA.
Michael: <unk> of corn on North America, Brian Billingsley.
Michael: Lastly in regards to our cash position and outlook, we expect to exit 2024, with approximately $8 million to $10 million of cash on the consolidated balance sheet.
Michael: I will now hand, the call back to Michael for some closing remarks and.
Michael Seifert: To wrap up, the remainder of 2024 will bring even more growth and further opportunity to the business. With the addition of Cordova to the PublicSquare ecosystem and the forthcoming launch of our payment stack, among many of the other exciting milestones we've laid out today, we are supercharging our growth potential, and we're grateful for all of those who are on the journey with us. So we are excited now to move on to Q&A. We will address some of the inbound questions we received before the call, and I believe we're going to hand it over to Will.
Michael: Q&A.
Speaker Change: Wonderful Thank you Brad.
Michael: To wrap up the remainder of 2024 will bring even more growth and further opportunity to the business with the addition of Cordova to the public square ecosystem and the forthcoming launch of our payment stack. Among many of the other exciting milestones we laid out today, we are supercharging our growth potential and we're grateful for all of those who are.
Michael: On the journey with us.
Michael: So we've got announced.
Michael: Onto Q&A.
Speaker Change: We will address some of the inbound questions. We received before the call and I believe we're going to hand, it over to well.
William Kent: Operator, we'll take the first dial-in questions first, and then I'll take some of the questions that were submitted by shareholders.
Operator, we'll take the first dial in questions first and then I'll take some of the questions that were submitted by shareholders.
Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking a question. Our first question comes from the line of Darren Aptahi from Ross Capital Partners. Please go ahead.
Speaker Change: Thank you we will now begin the question and answer session. If you have dialed in we would like to ask a question. Please press star wanting a California keep activates your hand in China Q. If you would like to withdraw your question simply press Star. One again, if you are called upon to your question in a listening via loudspeakers device. Please pickup your handset and ensure that.
Speaker Change: Your point is nothing hidden asking question. Our first question comes from the line of Darrin Asahi from Roth Capital Partners. Please go ahead.
Darren Aptahi: Hey guys, good morning. Thanks for taking my questions. A couple by May.
Darrin Asahi: Hey, guys. Good morning, Thanks for taking my questions. A couple if I may so can you just talk about the.
Michael Seifert: So, um, can you just talk about, um, your, your marketplace. I know, Mike, you had some comments about progress. I'm just kind of curious about any metrics you guys kind of find encouraging. I know you launched this roughly six or seven months ago, but as it compares to the initial launch, any kind of encouraging metrics you guys saw in one cue in terms of whether it was conversion, AOV, retention, anything like that? And then, I guess, juxtaposing, as part of that. How does this kind of life and a broader strategy fit into the commerce market?
Darrin Asahi: Your your marketplace.
Darrin Asahi: I know, Mike you had some some comments about progress I'm, just kind of curious about any.
Speaker Change: Our metrics you guys kind of find encouraging I know you launched this roughly six or seven months ago, but as it compares to the initial launch any kind of encouraging metrics you guys saw in <unk> in terms of whether it was conversion.
Speaker Change: Retention anything like that and then I guess juxtaposing.
Speaker Change: As part of that how does kind of why a broader strategy to the Congress marketplace.
Michael Seifert: Good to hear from you. Yeah, I'll give you a few metrics that we're very encouraged by as we look at the marketplace. I obviously mentioned that bulk usage was up over 300% from Q1 of last year. That's a big deal for us. The platform's becoming more and more usable and user-friendly as each day passes and as new features and enhancements are added to the experience, like auto-saving address information, enhanced search that actually uses predictive analysis based upon past searches, and saved past purchases so that you can actually resurface purchases you've already made and check out again.
Speaker Change: Great questions. Darren. Thank you good to hear from you, yes, we I'll give you a few metrics that we're very encouraged by as we look at the marketplace. I. Obviously, you mentioned that bulk usage up over 300% from Q1 of last year, that's a big deal for US the platform is becoming more and more usable and user friendly as each day passes.
And as new features and enhancements are added to the experience like auto saving address information enhanced search that actually uses predictive analysis based upon past searches saved past purchases. So that you can actually resurface purchases, you've already made and check out again.
Michael Seifert: There are a lot of enhancements to the overall shopping workflows that we've added that help people experience better category grouping, and we're really proud of that. We've had our AOV hover right around $70, which we're very encouraged by. That's exactly where we want to be.
Speaker Change: There are a lot of enhancements to the overall shopping workflows that we've added that help people experience better.
Speaker Change: Better category grouping that we're really proud of we've had our ARV hover right around $70, which we're very encouraged by that's exactly where we want to be.
Michael Seifert: So again, an AOV of $70 is a good metric that we look to hover right around. If we are launching campaigns that have a number of quick-pickup household items, we'll have a few days that dip below that. And if we're selling larger products for gifts or larger holidays, sometimes the AOV will go significantly above $70. We want it to maintain, though, hanging right around that $70 mark.
So again, we have $7 is a good metric that we look to hover right around.
Speaker Change: If we are launching campaigns that have a number of quick pick up household items. We will have a few days the depths below that and if we're selling a larger.
Speaker Change: <unk> for a guess or a larger holiday as you know sometimes they LVL go significantly above 70, we want it to maintain though hanging right around that $70. Mark I would also say that the fact that Q1 order volume was actually larger than Q4 is a great sign for us, especially without increased cost and marketing in Q1.
Michael Seifert: I would also say that the fact that Q1 order volume is actually larger than Q4 is a great sign for us, especially without increased costs in marketing in Q1. And the reason I say that is because, obviously, our marketplace is structured as a marketplace, a retail shopping experience. And the fact that we didn't have this massive spike during the Christmas shopping season that then descended into a lower Q1, but it actually was the opposite. Q4 was an incredible basis for then Q1 was able to build on top of.
Speaker Change: And the reason I say that is because obviously our marketplace is structured as a as a marketplace of retail shopping experience and the fact that we didn't have this massive spikes during Christmas shopping season that then.
Speaker Change: Descended down into a lower Q1, but it actually was the opposite in Q4 was an incredible basis. For then Q1 was able to build on top of that was really affirming.
Michael Seifert: And that was really affirming for us. It's a great sign that consumers are spreading the word at a greater capacity. The last thing I'll mention is that we've continued to see our customer acquisition costs decrease as time goes on, which is a great sign that our marketing channels and our strategies we're employing are working. As to the second question, or excuse me, are working.
Speaker Change: Great sign that consumers are spreading the word it a greater capacity. The last thing I'll mention is that we've continued to see our customer acquisition costs decrease as time goes on which is a great sign that our marketing channels and our strategies. We're employing are using as to the second question or excuse me are working.
Michael Seifert: Second question, Darren, you mentioned live. This was a fun idea that I had earlier in the year. I've always loved the idea of social commerce, and I think the world is heading there. We see this happening on notable platforms like TikTok, like Meta.
Second question, Darren you mentioned lives.
Speaker Change: This was a fun idea that I had earlier in the year I've always loved the idea of social Commerce and I think the world is heading here. We see this happening on notable platforms like Tictoc like meta theyre trying to bring the shopping experience far more into a social environment. I've also always been intrigued by the concept of live shopping space.
Michael Seifert: They're trying to bring the shopping experience far more into a social environment. I've also always been intrigued by the concept of live shopping, specifically through programs like QVC, but QVC struggled to reach a younger audience. I thought, well, gosh, we have a very active consumer base that is driven to experience social commerce. It's rooted in community, so trust-based transactions, influencer-led marketing, and a robust ambassador program. We thought, what if we actually put our product, these incredible small businesses with high-quality products to sell and impactful stories to tell, we could put that into a live shopping environment and offer exclusive discounts to consumers that are watching?
Speaker Change: Typically through programs like QVC QVC struggled to reach a younger audience.
Speaker Change: Well gosh, we have a very active consumer base that is driven to experienced social commerce. It's rooted in community. So trust based transaction Influencer led marketing a robust ambassador program, we thought what if we actually put our product he has incredible small businesses with high quality products.
Speaker Change: The style and impactful stories to tell when you put that into our lives shopping environment offer exclusive discounts to consumers that are watching around that time I actually met Aaron Elmar, who is former QVC hosts on our personality. She was on the apprentice as well long career.
Michael Seifert: Around that time, I met Erin Elmore, a former QVC host, on-air personality, and she was on The Apprentice as well. She loved the idea, fell in love with the vision, decided to join our team, and has actually led that effort. I'll wrap it up by saying the metrics I'm excited about. Our Saturday order volume, May 11th, the debut of PublicSquare Live, was higher even by over 10% than even Black Friday was in terms of order volume.
Speaker Change: And a lot of different facets of media and entertainment and she loved the idea. So in love with the vision decided to join our team and has actually led that effort I'll wrap it up by saying the metrics I'm excited about our Saturday order volume may 11th the debut of public square lives was higher.
Michael Seifert: So, what's awesome about this as well is that we were offered a spot on Real America's Voice to actually showcase this content. The pieces have all come together in a very cost-effective manner, and we get excited about initiatives like this because it showcases that our consumers who are as excited about our products as they are about the stories that the businesses are telling will actually put that excitement into purchasing power when they're presented with the opportunity.
Speaker Change: And then by over 10% and then even Black Friday was in terms of order volume. So what's awesome about this as well is that we were offered the spot on real America's voice to actually ship. This content the pieces of all come together in a very cost effective manner.
Speaker Change: And we get excited about initiatives like that because it showcases that are consumers that are as excited about our product as they are the stories that the businesses are telling will actually put that excitement into purchasing power when.
Michael Seifert: And again, during that segment of PublicSquare Live, our AOV hovered right around 70. So, it's the perfect encapsulation of what we're trying to do with our brand, and we're looking forward to putting some gas on the fire of that endeavor as well. I know that's a lot, but I hope that's helpful context.
Speaker Change: When they are presented the opportunity and again during that segment and public square live <unk> hovered right around 70. So it's the perfect encapsulation of what we're trying to do with our brand and we're looking forward to putting some gas on the fire of that endeavor as we move forward.
Michael Seifert: That is, just a couple more on Cordova. I think you guys gave the contribution, with and without, for the full quarter. I think the math, if mine's right, is 3.3 million, roughly. My question is not so much about the math, it's more, "Is there any seasonality in the payments business?" I assume it is tied to commerce in general and then maybe some initiatives you guys kind of talked about in the release to just kind of help further growth there.
Speaker Change: That's a lot I hope that's helpful context.
Speaker Change: That is just a couple more on credo goes so.
Speaker Change: I think you guys gave the contribution.
Speaker Change: For the full quarter I think the math is mines right is $3 3 million roughly my question is not so much the math it's more.
Speaker Change: It is.
Speaker Change: There will be seasonality in the payments business I assume there is tied to Congress in general and then maybe some initiatives you guys have talked about in the release to just not a help.
Michael Seifert: Yeah, great question. There certainly is seasonality in the payments business broadly. If you look at Cordova on the consumer and business financing side, there is seasonality that's tied to the retailers that they serve. So we obviously saw that Buy Now Pay Later across the entire industry went on a tear in Q4 of last year. It was responsible for the bulk of the Christmas shopping that the market experienced, an uptick of 9% from the year before across the whole market. And that's certainly true of Cordova as well.
Speaker Change: Further growth there.
Michael Seifert: The seasonality generally follows shopping trends. And so given that some of their largest vendors are gun marketplaces, for example, entities like guns.com, the seasonality that they experience will obviously be the seasonality that Cordova experiences with one exception. I would say that one of the nice things about Buy Now Pay Later is that it gives folks an opportunity to actually break free of seasonality a little bit. And that sort of new school layaway is a good way for consumers to experience the financial freedom to purchase these higher AOV items and do it in a little bit more of a strategy that allows for some financial planning over the year.
Speaker Change: Yes, Great question, there is certainly seasonality in the payments business broadly if you look at <unk> on the consumer and business financing side.
Speaker Change: There is seasonality that's tied to the retailers that they serve so we obviously saw that buy now pay later across the entire industry went on a tear in Q4 of last year. It was responsible for the bulk of the Christmas shopping that the market experienced the uptick of 9% from the year before across the whole market.
Speaker Change: And that's certainly true of crude of as well the seasonality generally follows shopping trends and so given that some of their largest vendors are gun market places for example, so entities like <unk> dot com the seasonality of the day experience will obviously be the seasonality often that crude other experiences with one except.
Speaker Change: I would say that one of the nice things about buy now pay later is it gives folks an opportunity to actually break free of seasonality a little bit.
Speaker Change: And that that sort of new school AOA is a good way for consumers to experience.
Speaker Change: The financial Freedom to purchase these higher <unk> items and do it in a little bit more of.
Michael Seifert: What I'll say on the payment side is that payments are a little less seasonal, given that we are not exclusively serving retailers. The payment stack that we are building that is beginning to onboard clients and will have its launch in Q3 has a wide variety of different industries that it will represent. Obviously, for our design clients, the V1 is largely catered toward the shooting sports industry.
Speaker Change: A strategy that allows for some financial planning over the year, what I'll say on the payment side is that payments is a little less seasonal given that we are not exclusively serving retailers.
Speaker Change: The payment stack that we are building that is beginning to onboard clients and we will have our launch in Q3 has a wide variety of different industries that it will represent obviously our design clients. The V. One is largely catered towards the shooting sports industry, but many other industries that are partaking in there that have wildly different.
Michael Seifert: But there are many other industries that are partaking in this that have wildly different seasons of strength. So, for example, we have tax professionals that really see, you know, the spring and the winter as their sweet spots, and we have traditional retailers that are looking to the Christmas shopping season for their purchasing boom. So, payments will be a little less seasonal. Cordova is a bit more seasonal. But even in Cordova's case, there are a few attributes of the actual product that break it free from seasonal pressure.
Speaker Change: Seasons of strength.
Speaker Change: So for example, we have tax professionals that really see the spring in the winter as their sweet spot and we have traditional retailers that are looking to the Christmas shopping season for their purchasing boom. So payments will be a little less seasonal cordova is a bit more seasonal but even in the <unk> K. There are a few attributes of.
Michael Seifert: One more note that I will mention is that the combination of these forces between payments and a credit product is very exciting to be able to take to these retailers. It helps them improve their conversion rates in a pretty major way. And so, we're excited to see that drive traffic to some of our great partners.
Speaker Change: The actual product that break it free from seasonal pressure one more note that I will mention is that the combination of these forces between payments and a credit product is very exciting to be able to take to these retailers. It helps them up their conversion rates in a pretty major way and so we're excited to see that drive traffic to some of our great Park.
Michael Seifert: Great. And then, I guess, last one for me on every life: business continues to grow really nicely. You guys are adding, I think you said lotions and soaps, and then you launched, or will be launching, Eden pretty soon. I guess when you step back and kind of look at the TAM for that, I mean, where are we in terms of, like, scratching the surface with this business? Do you feel like you have? You know, tens of segments underneath the EveryLife brand, hundreds of segments, all organic.
Speaker Change: In this space.
Speaker Change: Okay.
Speaker Change: Great and then I guess last one for me on every life business continues to grow really nicely you guys are adding.
Speaker Change: You said low single and then you launched we'll be launching.
Speaker Change: He didn't pretty soon I guess.
When you step back and kind of look at the Tam for that.
Speaker Change: Where are we in terms of like the scratching the surface of this business do you feel like you have.
Michael Seifert: I'm just trying to get a sense for, and just kind of feedback. Obviously, the subscription piece has been fairly strong and consistent, but just give me your general thoughts on kind of the bigger picture with EveryLife. Thanks. Yeah, thanks, Darren. Appreciate it a ton. We continue to be
Speaker Change: You know tens of segments underneath the every life brand hundreds of segments or is it all organic I'm just trying to get a sense for and just kind of feedback obviously the subscription piece has been fairly strong and consistent but just give me give me a general thoughts on kind of a bigger picture of everyday life.
Michael Seifert: We continue to be very pleased with the growth of EveryLife. It's been a wild ride and a very fun endeavor to be a part of. One thing that we're very positive about is the fact that our churn is just so low. Our churn is less than 10% on average, and that's a big deal for a subscription business with an LTV of about 18 months, generally. And we're really thrilled by the new traffic that's coming in that's choosing, even as a first-time purchaser, an actual subscription offering with recurring revenue where the diapers actually show up at their doorstep. It's a great sign of brand trust.
Michael Seifert: Yeah, thanks, Darren. I appreciate it a ton.
Darren: Yes, Thanks, Darren I appreciate it a ton we continue to be very pleased with the growth of every life. It's been a wild ride in a very fun endeavor to be a part of.
Darren: One thing that we are.
Speaker Change: Very positive about is the fact that our churn is just so low our churn is less than 10% on average and that's a big deal for our subscription business.
With an LTV of about 18 months generally.
Speaker Change: And we're really thrilled by the new traffic that's coming in is choosing to have lacked even as a first time purchase or an actual subscription offering with recurring revenue, where the diapers actually show up at their doorstep. It its a great sign of brand Trust I also continue to be incredibly pleased with our over 700 ambassadors with every life.
Michael Seifert: I also continue to be incredibly pleased with our over 700 ambassadors for EveryLife that are utilizing their exclusive discount code and sharing it with their communities, their churches, and their organizations. To directly answer your question, I would point out a few things related to the future of EveryLife. Number one, I would say that the TAM is not yet even 5% of the way through. Even if you just look at diapers and wipes in the United States for this specific industry cohort, if you don't add any other products to the mix, you don't add any segments to the mix other than what exists today, we continue to believe we're less than 5% of the way through the TAM, and that's actually pretty conservative.
Speaker Change: That are utilizing their exclusive discount code sharing them with their communities and their churches in their organization.
Speaker Change: To directly answer your question I would I would point out a few things related to the future of every license number one I would say that the Tam we aren't we're not yet even 5% of the way through the town.
Speaker Change: So even if you just look at diapers and wipes in the United States for this specific industry cohorts you don't add any other products to the mix you don't add any segments to the Max other than what exists today. We continue to believe we're less than 5% of the way through the Tam.
Michael Seifert: On top of that, I would say that EveryLife actually has potential international applications, and I would mention that one of the key drivers of growth and success for Every Life to date has actually been our partnerships with certain organizations. So, we have a broad network of pregnancy resource centers in hundreds now around the world that have expressed interest or taken action on their interest to actually source our diapers in their centers. We've had Catholic hospitals partner with us.
Speaker Change: That's actually pretty conservative.
Speaker Change: A conservative on top of that I would say that every life actually has potential international applicability that.
Speaker Change: That is unique and so we're excited too and we've begun the process of.
Speaker Change: Doing analysis on what that Tam actually it looks like if you expand it out beyond our borders so we'll see how that evolves, but it's something that we're excited about pursuing that we're in the research stage on currently.
Speaker Change: What I would also mentioned is that we will certainly have future segments underneath me every life brand.
Speaker Change: We do anticipate that it will continue to become more of a family brand as we move forward with multiple product offerings and the final thing that I would mention is that one of the key drivers of growth and success for everyone. Today is actually been our partnerships with certain organization. So we have a broad network of pregnancy resource centers and one hundreds now around.
Speaker Change: The country that have expressed interest or taken action on their interest to actually source our diapers in their centers, we've had Catholic hospital partner with US We've had major drives in fact, just last Sunday, we filmed a mother's day special on Fox and friends, we would encourage everybody to head to Republic square Dot com or every life dot com and <unk>.
Michael Seifert: We've had major diaper drives. In fact, just last Sunday, we filmed a Mother's Day special on Fox and Friends. We would encourage everybody to head to publicsquare.com or everylife.com and check that out. But we had a great segment where Fox and Friends came out and actually filmed us hosting a diaper drive that was funded by our supporters that purchased through the Buy for a Cause program. And it was an incredible opportunity to help out a community in need and experience quite a bit of traffic increase and brand awareness through it that has now converted into new subscribers.
Speaker Change: Back that out, but we had a great segment, where Fox and friends came out and actually film that is hosting a diaper drive that was funded by our supporters that purchase through the buy for a cost program and it was an incredible opportunity to help out a community of need and experience.
Michael Seifert: So, this is really the model moving forward. We believe that pregnancy resource centers, hospital networks, Catholic charities, these different organizations are sort of our form of retail here in the United States. They provide bulk orders at a great margin, and it gives us an opportunity to ultimately leverage the trust of these wonderful institutions that have decided to partner with us. So, that's our take on Every Life. I guess I would add one more thing, and that's that we continue to be so impressed by how well that brand has excelled with such a small team. That brand has done a fantastic job of scaling in a way that's really lean and mean. And so we've got a team of rock stars executing on what will be a fun roadmap heading into the rest of the year with the next development being so.
Speaker Change: Quite a bit of a traffic increase in brand awareness threat that has now converted into new subscribers. So this is really the model moving forward, we believe that the pregnancy resource centers. The hospital networks. The Catholic charities. These different organizations are sort of our form of retail here in the United States. They provide bulk orders at great margin and it gives us an opportunity.
Speaker Change: To ultimately leverage the trust of these wonderful institutions that have decided to partner with us. So.
Speaker Change: That's our take on every life.
Speaker Change: Also I guess I would add one more thing Darrin that we continue to be so impressed by how well that brand has excelled with such.
Speaker Change: Such a small team that brand had a fantastic job of scaling in a way that's really lean and mean and so we've got a team of Rockstar is executing on what will be a fun roadmap heading into the rest of the year with the next development being soaps emotion.
Speaker Change: Great. Thanks, Mike.
Operator: Our next question comes from the line of Dawn Forde from Maxim Group. Please go ahead.
Darren I: Thank you Darren.
Dawn Forde: Great. Thanks, Michael. Congratulations on the quarter.
Darren I: Yeah.
Speaker Change: Our next question comes from the line of Tom Forte from Maxim Group. Please go ahead.
Michael Seifert: Two questions for me. The first one, you've talked a lot about this, but I was hoping you could give me like a 60 to 90 second overview of your strategy for selecting additional first party categories beyond baby. So you talked about getting into women's care products, but what's your overriding strategy?
Michael: Great. Thanks, Michael Congrats on the quarter two questions for me the first one you've talked.
Tom Forte: A lot about this but I was hoping you can give like a 60 to 92nd overview.
Speaker Change: On your strategy for selecting additional first party categories, yes.
Michael Seifert: Great question. Good to hear from you, Tom.
Speaker Change: Baby, So you talked about getting into a women's care products, but what's your overriding strategy.
Michael Seifert: So, what I would say briefly is that our strategy is consumer-led, meaning consumers will reach out to us, and they will share demand for a certain niche or a sub-industry within an industry and will let us know that they would love to see that represented in greater capacity on the platform. We then look and see, well, gosh, is there an opportunity already out there in the market that exists?
Speaker Change: Great question good to hear from you Tom.
Speaker Change: So what I would say briefly is that it's really informed by our consumers our strategy as consumer led meaning consumers will reach out to us and they will share demand for a certain niche or a sub industry within an industry and they would love to see that represented.
Michael Seifert: We just need to invite them to the platform. So, is it an opportunity to host a great third party that we can promote and potentially court as an advertiser? If there's not, well, then we know that there's a void here. We know that there's a hole.
In greater capacity on the platform.
Speaker Change: We then look and say well gosh is there an opportunity already out there in the market that exists and we just need to invite them to the platform. So that's been an opportunity to host a great third party that we can promote and potentially corn as an advertiser if theres not well then we know that theres a void here, we know that theres, a whole and what if we actually created a consumer product to meet the demand of this consumer base.
Michael Seifert: And what if we actually created a consumer product to meet the demand of this consumer base? So, that's the first litmus test. We have to know that there's consumer demand, and the consumer demand is actually categorically ranked every month. So, we as a product team get together, and we rank the interest, and the search results from our platform. And we try to have a very fine-tuned understanding of exactly what our customers are looking for.
Speaker Change: So that's the first let me step we have to know that there is consumer demand in the consumer demand is actually categorically ranked every month. So we as a product team get together and we rank the interest the search results from our platform and we tried to have a very fine tuned understanding exactly what our customers are looking for the second thing that I would mention is <unk>.
Michael Seifert: The second thing that I would mention is, ultimately, they have to be products that are synergistic to the overall vision and mission. We have to be able to leverage the existing audience to attract new buyers. That way, we can keep the customer acquisition costs rather low compared to our competitors, and that can serve as a powerful differentiator. For example, in the case of Feminine Care, we've seen that there's obviously quite a relevant conversation going on right now related to womanhood.
Speaker Change: Ultimately they have to be products that are synergistic to the overall vision and mission, we have to be able to leverage the existing audience to catapult into new buyers.
Speaker Change: That way, we can keep the customer acquisition costs, rather low compared to our competitors and that can serve as a powerful differentiator. So in the case of feminine care, we've seen that there's obviously a quite a relevant conversation going on right now related to womanhood and we've heard from.
Michael Seifert: And we've heard from many women on our team, as well as women consumers, that are saying, I feel like many of these Feminine Care brands have completely ignored me or even gone so far as to mock my existence. And we're done with that.
Speaker Change: Many women all of our team as well as women consumers that are saying have feel like many of the feminine care brands have completely ignored me or even gone farther as to Mark my existence.
Michael Seifert: We would love an elegant feminine care brand that caters to women with an impactful message that celebrates femininity, as well as a high-quality, clean product. They reached out, and shared that interest. We've seen that interest embodied across channels, meaning even every life customers, we see as very feasible and excited potential future customers of this brand. So, there are synergies across the board, and it makes sense for us to bring this into the market.
Speaker Change: We're done with that we would love an elegant feminine care brand that caters toward women with an impactful message that celebrates femininity as well as a high quality clean product. They reached out sure that interest we've seen that interest embodied across channels, meaning even every life customers.
Speaker Change: We see as a very feasible and excited potential future customers of this brand. So there are synergies across the board and it makes sense for us to bring this into the market one more thing I'll mention in relation to the synergies is that Theres also manufacturer crossover. So we had a lot of our existing supply chain set up to be able to accommodate these.
Michael Seifert: One more thing I'll mention in relation to the synergies is that there is also manufacturer crossover. So, we have a lot of our existing supply chain set up to be able to accommodate these additional products. That way, we're not having to expand soup to nuts a brand-new supply chain every time we want to get into a new brand endeavor. So, those are some of the good characteristics to be looking for as we move forward. Those are our sort of litmus test items that deem a product category worthwhile jumping into.
Speaker Change: All products that way, we're not having to expand soup to nuts are brand new supply chain every time, we want to get into a new brand endeavor. So those are some of the good characteristics to be looking for as we move forward. Those are our sort of litmus test items that deem a product category worthwhile of jumping into.
Michael Seifert: And then, for my second and final question, I want to talk about your customer acquisition costs and the lifetime value of a customer. So you've done an amazing job of brand building to date, which I think has enabled you to acquire essentially a large number of customers for free. You talked about a great spot you had on Fox News, which sounds like another wonderful brand building event. But can you talk about your customer acquisition costs and how that's trended over time, and then just your high-level thoughts on the lifetime value of those customers you're acquiring?
Speaker Change: Great and then my second and final question I wanted to talk about your customer acquisition costs.
Speaker Change: Lifetime value of a customer so he's done an amazing job of brand building to date, which ethics enabled you to acquire a essentially a large number of customers for free.
Speaker Change: It's about a great.
Thought you had on Fox news, which sounds like another wonderful brand building events, but.
Speaker Change: But can you talk about.
Michael Seifert: Great question. So, what I would say is that our customer acquisition cost based on segment will be a KPI that we track very closely moving forward, especially now that our marketplace has a few months under its footing since the launch in November of these new e-commerce capabilities. I would say that the way that we're fine-tuning our customer acquisition costs more than any other moving forward is, of course, continuing to leverage these earned media opportunities that we love. There's no better customer acquisition cost than $0.
Speaker Change: Your customer acquisition costs, and how that's trended over time and then just your high level thoughts of your lifetime value of those customers you are acquiring.
Speaker Change: Great question, So what I would say is that.
Speaker Change: Our customer acquisition cost.
Speaker Change: Basically.
Speaker Change: <unk> will be our kpis that we track very closely moving forward, especially now that our marketplace has a few months under its footing.
Speaker Change: Hum.
Speaker Change: The launch since November of these new ecommerce capabilities.
Speaker Change: I would say that the way that we're fine tuning our customer acquisition costs more than any other moving forward is of course continuing to leverage these earn media opportunities that we love Theres, no better customer acquisition costs than zero dollars.
Michael Seifert: We enjoy that quite a bit, but we also are excited to continue dialing our direct response strategy. So you're going to hear me talk quite a bit about our direct response strategy across segments as we move forward. And we can actually have a past customer that has a strong lifetime value. They're excited about the mission.
Speaker Change: We enjoy that quite a bit but we also are excited to continue dialing our direct response strategy. So you're going to hear me talk quite a bit about our direct response strategy across segments. As we move forward, we have discovered a look alike audience.
Speaker Change: That is enormous and it's indicative of our Tam. Our goal then is to create digital experiences and advertisements and online social and content campaigns that can go actually target that look alike audience and convert them into buyers by showcasing our wonderful products, we're selling in the store.
Speaker Change: Or is that these business owners are telling.
Speaker Change: One of the other work we're doing that in the direct response for all of US are quite a bit of user generated content and we can actually have a past customer that has a strong lifetime value theyre excited about the mission they've loved the quality of the products that they purchased from the sites. We can turn them into an actual ambassador through user generated content. We then actually advertise that UGC.
Michael Seifert: They loved the quality of the products that they'd purchased from the site. We can turn them into an actual ambassador through user-generated content. We then actually advertise that UGC on our digital and social channels, and it drives traffic at a low customer acquisition cost to the site. What's nice about this as well is it's a very data-driven approach. So, we've got our earned media, we've got our influencers that are far more organic, and we've got our community event-building experiences that we take every opportunity we can to maximize.
Speaker Change: On our digital and social channels and it drives traffic at a low customer acquisition cost to the site, what's nice about this as well as its a very data driven approach. So we've got our earned media. We've got our Influencers that are far more organic we've got our community event building experiences that.
Michael Seifert: But what I'm really excited about moving forward is the day-in, day-out, data-driven direct response strategy that targets the exact look-alikes we want to go after in demographic regions and can invite them to become consumers on the site. That's our key as we move forward to continuing to keep our customer acquisition cost very, very low. Especially compared to the marketplace comps in this space. I know you're probably not asking about EveryLife specifically, but I'll throw that in there as well.
Speaker Change: We take every opportunity we can to maximize but what I'm really excited about moving forward is the day in day out data driven direct response strategy that targets. The exact lookalikes, we want to go after and demographic regions and can invite them to become consumers on the site. That's our key as we move forward to continuing to keep our customer acquisition cost.
Michael Seifert: Because what I would say with EveryLife is, as I mentioned, part of the way that we're keeping our customer acquisition cost very low on EveryLife is by utilizing the trust of certain organizations that we partner with. And then on the Cordova side, what's very nice about Cordova and the payment side is that many of these audiences are actually synergistic. So, for example, when Cordova brought over 2.8 million customer accounts that had originated loans with them in the past, we are beginning the process of marketing the Public Square platform to the Cordova audience and vice versa.
Speaker Change: Very very low.
Speaker Change: Specially compared to the marketplace comps in this space I know youre, not probably asking about every life, specifically, but I'll throw that in there as well because what I would say with every life is as I mentioned part of the way that we're keeping our customer acquisition costs very low on every life is by utilizing the trust of certain organizations that we partner with and then on the <unk> side.
Speaker Change: What's very nice about the crude over on the payment side is that many of these audiences are actually synergistic. So for example, when Cordoba brought over $2 8 million customer accounts that had originated loans with them in the past we are beginning the process of marketing the public square platform to the critical the audience and vice versa. That's the beauty of this holding company strategies.
Michael Seifert: That's the beauty of this holding company strategy is that we actually have the opportunity to leverage millions of customers across verticals as well as merchandise. I hope that's helpful context for how we look at continuing to keep CAC low as we grow and scale.
Speaker Change: We actually have the opportunity to leverage millions of customers across verticals as well as merchants.
Michael Seifert: Great. Thanks, Michael. I appreciate it.
William Kent: I will now turn the conference back to William Kent for questions submitted.
Speaker Change: Hope that's helpful context for how we look at continuing to keep cash flow as we grow in scale.
Speaker Change: Great. Thanks, Michael I appreciate it.
William Kent: Thank you, Dee. As in previous quarters, we've received some questions via the SATAC platform, and we'll probably cover four or five of them here before we close things off. The first question, which is, by the way, upvoted by Sharon's representative, is on platform expansion and a question around when can we see the PublicSquare platform expanded to other countries as expected, and what are your thoughts on that?
Speaker Change: I will now turn the conference back to William Kent or submitted questions.
Pete: Thank you Pete.
Speaker Change: As in past quarters, we've received some questions via the <unk> platform.
William Kent: And we will probably cover four or five of them here before we close things up the first question.
Speaker Change: By the way are up floated by representative represented excuse me is on platform expansion and then a question around when can we see expansion of the public square platform to other countries as expected.
Michael Seifert: I love this question. We certainly understand that the desire for a parallel economy in certain nation-states is not exclusive to the United States. We've heard great interest from other nations, including Canada, Australia, South Africa, New Zealand, Mexico, South Korea, among many others. We actually have an international waitlist that has grown by tens of thousands of folks that are looking for our product expansion into other nations. What I would say is that product expansion into other nations is not something that's certainly off the table.
Speaker Change: And what are your thoughts on that.
Speaker Change: I Love. This question, we certainly understand that the desire for a parallel economy in certain nation states is not exclusive to the United States and we've heard great interest from other nations, including Canada, Australia, South Africa, New Zealand, Mexico, South Korea, among many others, we actually have an international waitlist.
Speaker Change: That has grown by the tens of thousands of folks that are looking for our product.
Michael Seifert: In fact, it's something that we're excited about with two caveats. Number one is that it probably expands segment by segment, meaning there's not a high chance that we bring all of the PSQ holdings product verticals into a new country all at once. It likely looks like we launch every life in another country, as I just mentioned. And then we actually learn about that audience there before we bring a public platform to that audience. Our goal with all of this is to nail it before we scale it.
Speaker Change: Product expansion into other nations, what I would say is that our product expansion into other nation.
Speaker Change: It is not something certainly that's off the table in fact, it's something that we're excited about with two caveats number one is it probably expands.
Speaker Change: By segment, meaning there.
Speaker Change: There is not a high chance that we bring all of the <unk> holdings product verticals.
Speaker Change: To a new country all at once it likely looks like we launch every life in another country as I just mentioned and then we actually learned about that audience before we would consider.
Michael Seifert: So that's the first thing I'd say is that it's likely segmented so that we can understand the opportunity fully before we jump in. The second thing that I would mention is that, you know, we are currently in the process of courting international ambassadors, so folks that know their economic environments very well. They've earned a high level of trust amongst their merchant community and consumer community in their respective countries. And then we're able to cross reference that with the amount of interest that has been displayed through our international waitlist, which can help inform us when it is time to begin the process of seriously considering international expansion.
Speaker Change: Bringing public square the platform to that audience. Our goal with all of this is to nail it before we scale. It. So that's the first thing I'd say is that it's likely segmented. So that we can understand the opportunity fully before we jump in the second thing that I would mention is that.
Speaker Change: We are currently in the process of courting international ambassadors, so folks that know their economic environment very well they have court at a high level of trust amongst their merchant community and consumer community in their respective countries and then we're able to cross reference that with the amount of interest that has been displayed through our international weightless that can help inform to us.
Michael Seifert: And if I had a third point, it would be this. We ultimately believe at the end of the day that Public Square will never be the world's marketplace, meaning we don't want to drop the importance of your respective nation. We actually love the idea of economic nationalism, and we believe that our responsibility as citizens should be primarily to serve our community. And so while we are certainly open, interested, and excited about international expansion with the Public Square marketplace, it probably looks like, just like Public Square is America's marketplace, it probably looks like Public Square Canada is Canada's marketplace, meaning there's not cross-border selling as much as there is your own dedicated internal marketplace that serves your community first So more on that to come, love the question, and we're excited to see how this continues to progress.
When it is time to begin the process of seriously considering international expansion and if I had a third point it would be this.
Speaker Change: We ultimately believe at the end of the day that public square will never be the world's marketplace, meaning we don't want to drop the importance of your respective nation, we actually love the idea of economic nationalism, and we believe that our our responsibility as citizens should be primarily first serve our community and so while we are certainly open and interested in.
Excited about international expansion with a public square marketplace. It probably looks like just like public squares America's marketplace. It probably looks like public square, a Canada is Canada's marketplace, meaning theres not cross border selling as much as there is your own dedicated marketplace internal that serves your community first and foremost so more on that to come love. The question and we're excited to see.
Michael Seifert: Thank you, Michael. The next question we got was on exposure. It seems that the last quarter was way above expectations, yet the capital markets have not responded with the stock price moving much higher. Besides social media, how will you guys look to get additional exposure in the market?
Speaker Change: This continues to progress.
Speaker Change: Thank you Michael next question, we got resolved exposure.
Speaker Change: It seems that the last quarter was way above expectations yet.
Michael Seifert: I'm happy to answer this question. So I would say something right off the bat, and that's that I firmly do not believe that the price of the stock today is at all indicative or reflective of how our business is actually performing. So, I want to make that abundantly clear. I believe that we have continued to perform above expectations, and all signs, from myself as well as the management team and our board of directors, are pointing in an increasingly positive direction.
Speaker Change: The capital markets have not responded with a stock price moving much higher besides social media, how will you guys look to get additional exposure in the markets.
Speaker Change: Happy to answer this question, so I would say something right off the bat and that's that.
Speaker Change: I firmly do not believe that the price of the stock today.
Speaker Change: Is at all indicative or reflective of how our business is actually performing.
Speaker Change: So I want to make that abundantly clear I believe that we have continued to perform above expectations and all signs.
Michael Seifert: I have never been more bullish and excited about the future of this business than I am right now. So I just don't believe that the stock is reflective of that or indicative of that reality. I don't yet believe that people have fully realized what we're really on.
Speaker Change: For myself as well as the management team and our board of directors is pointing in an increasingly positive direction I have never been more bullish and excited about the future of this business and I am right now.
Michael Seifert: So, what I would say related to the exposure question is, I'm most interested in exposure to further consumers and merchants. We want to grow the business, at the end of the day. Because my firm belief is that as we grow our business, and as we execute against our roadmap, and as we perform and meet these milestone moments that we've been so excited to put forth on a roadmap, we will eventually see our exposure to the investment community continue to increase as well.
Speaker Change: So I just don't believe that the stock is reflective of that are indicative of that reality I don't yet believe that people are fully realized what we're really onto here. So what I would say related to the exposure question is I'm most interested in exposure toward further consumers and merchants, we want to grow the business at the end of the day because my firm belief is that as we grow our business and as we exit.
Speaker Change: Acute against our roadmap and as we perform and meet these milestone moments that we've been so excited to put forth on our road map we.
Michael Seifert: Now, that said, we are not neglecting or ignoring important investor outreach. In fact, we have a very connected board of directors. We've got some great capital markets advisors. We've made the conference circuit this year, haven't we Will? We have certainly tried to get our message out to as broad a network as possible on the investor side. But I believe firmly, as I mentioned, the way to ultimately achieve long-term exposure in the investment community that will ultimately hopefully reflect in a positive stock price is by first executing on the business and making sure we've got our exposure dialed to a larger and larger customer base until we can achieve the fullness of this TAM that we have set forth
Speaker Change: We will eventually see the exposure to the investment community continue to uptick as well now that said.
Speaker Change: We are not no.
Speaker Change: Neglecting or ignoring important investor outreach in fact, we have a very connected board of directors. We've some great capital markets Advisors. We've made the conference circuit. This year heavily well, we have certainly trying to get our message out to as broad of a network as possible on the investor side.
Speaker Change: I believe firmly as I mentioned, the way to ultimately achieve long term exposure.
Speaker Change: And the investment community that will ultimately hopefully, reflecting a positive stock price is by first executing on the business and making sure we've got our exposure to.
Michael Seifert: Thank you, Michael. Two more questions. The second to last question is on shipping. Obviously, with EveryLife, you have some distribution related to that product. What's PublicSquare's thought on distribution centers to ship products going forward?
Speaker Change: Sure.
Speaker Change: And larger customer base until we can achieve the fullness of this tam that we have set forth.
Speaker Change: Thank you Michael.
Speaker Change: Two more questions.
Speaker Change: Second last question is on shipping obviously.
Michael Seifert: So, our thoughts on this are a bit nuanced, and what I mean by that is that we have quite a few options as we move forward. And you see some competitors choosing to bring all of their 3PL fulfillment and even manufacturing operations in-house. You see other businesses that are actually selling off those operations.
Speaker Change: With every life.
Speaker Change: So I am distribution related to that product.
Speaker Change: Excuse me, what's public squares on distribution centers to ship products going forward.
Speaker Change: So our thoughts on this are a bit nuanced and what I mean by that is that we have quite a few options as we move forward and you see some competitors choosing to bring all of their three PL fulfillment and.
Michael Seifert: And so, we're certainly watching the market carefully. But more than anything, though, we're just looking for cost-effective and values-aligned strategies in these early days. So, great example.
Speaker Change: Even manufacturing operations in house do you see other businesses that are actually selling off those operation and so we're certainly watching the market carefully more than anything that we're just looking for a cost effective and values aligned strategies. In these early days. So great example for every life. We have partnered with an incredible three PL partner that is.
Michael Seifert: For EveryLife, we have partnered with an incredible 3PL partner that is completely values-aligned. They are with us in our mission. We actually found them through our own platform, which was pretty neat. They were a business service listed on PublicSquare when we were launching EveryLife. And they could not be a better treat to work with. Salt of the earth folks with high levels of integrity.
Speaker Change: Lately values aligned there with us in our mission, we actually found them through our own platform, which was pretty neat. They were a business service listed on public square when we were launching every life and they could not be better treat to work with salt of the Earth folks with high levels of integrity, what I want to do now is not only continue utilizing their fulfillment network for our firm.
Michael Seifert: What I want to do now is not only continue utilizing their fulfillment network for our further product development, but I actually want to monetize our relationship so that I can actually go and endorse them to the other consumer product brands that are third parties on our site. And that way, you know, I can take my time and our management team can take our time deciding whether or not we actually need to own that vertical as we move forward or whether or not it makes sense to say, you know what, let's stay asset-light and let's achieve, you know, a revenue-share relationship where we actually promote certain solutions on the business services manufacturing or fulfillment side to our broader consumer product audience.
Speaker Change: Product development, I actually want to monetize a relationship where I can actually go and endorsed them to the other consumer products brands that are third parties on our sites and that way I can I can take my time and our management team can take our time on deciding whether or not we actually need to own that vertical as we move forward or whether or not.
Speaker Change: It makes sense to say you know, what let's stay asset light and let's achieve a.
Michael Seifert: That's a decision we're currently in the process of making right now, so I cannot give you a definitive answer on where we will go with this, but I will tell you that we're keeping our options open. We're learning a lot right now from our early days with EveryLife and with the development of our feminine care brand. And at the end of the day, we're grateful for good partners and excited to see our relationships with them continue to grow.
Speaker Change: Revenue share relationship, where we actually promote certain solutions on the business services manufacturing and fulfillment side to our broader consumer product audience. That's a decision. We're currently in the process of making right now so I cannot give you a definitive answer on where we will go with it but I will tell you that we're keeping our options open we're learning a lot right now from our early days with every life and <unk>.
Michael Seifert: Our last question submitted is on business ratings. Shareholders state part of the reasons why they like some of our competitors is their rating systems and can see what other customers think about certain products. Is PublicSquare working on something similar, and when can we expect it?
Speaker Change: The development of our feminine care brand and at the end of the day, we're grateful for good partners and excited to see our relationship with relationships with them can continue to grow.
Alright.
Speaker Change: <unk>.
Speaker Change: <unk> is on a business ratings.
Speaker Change: Shareholders State part of the reasons why they like some of our competitors is the.
Michael Seifert: So, I love this question. Whoever asked it, you think very much in alignment with our team.
Speaker Change: The rating systems and can see what other customers see about certain products.
Michael Seifert: This has been one of the most exciting features we're looking forward to bringing to market. Reviews, here's the reason it hasn't happened until now. The world of reviews is largely broken, and very few platforms are actually doing anything to fix it. Oftentimes, there are junk reviews, there are bot reviews, there are reviews that are simply issued because they dislike the business without ever having partaken in the business. We saw that during the COVID season quite a bit.
Speaker Change: We are working on something similar and when can we expect that.
Speaker Change: So I love this question.
Speaker Change: Whoever asked that you think are very much in alignment with our team. This has been one of the most exciting features we're looking forward to bringing to market reviews. Here's the reason it hasn't happened until now the world of reviews as largely broken and very few platforms are actually doing anything to fix it oftentimes. There are junk reviews. There are bought reviews there are reviewed.
Michael Seifert: We also see that on a third-party marketplace like us, where we actually facilitate the ability for these businesses to link their product catalogs, we kind of have a decision to make. You can either bring in their existing reviews from their own website, or you start brand new with reviews from purely PublicSquare customers, or a bit of both. We also don't want to do reviews just like reviews with simple text and a five-star rating.
Speaker Change: That are simply issued because they dislike the business without ever having partaken in the business. We saw that during the COVID-19 season quite a bit.
Speaker Change: We also see that on a third party marketplace like us where we actually facilitate the ability for these businesses to link their product catalogs, we kind of have a decision to make you can either bring in their existing reviews from their own website or you start brand new with reviews from purely public square customers or a bit of both we also don't want to do reviews just <unk>.
Speaker Change: Reviews, with Tim simple taxed in a five star rating, we want to go bigger than that we actually went to allow for consumers to tell the story of the relationship and interaction. They have with these businesses and for businesses to actually share those stories at a greater capacity than to wrap all that up.
Michael Seifert: We want to go bigger than that, to wrap all that up. This review endeavor has been in the works for quite a while now, and it is on the near-term roadmap for release. That way, as you mentioned, consumers can know with blessed assurance not only are these great businesses that have been vetted in alignment with our values and the quality expectations we would hold, but there's consumer validation from other members of the community that have deemed these businesses very worthwhile to go to and shop from as well.
Speaker Change: This review endeavor has been in the works for quite a while now and it is on the near term roadmap to release.
Speaker Change: That way as you mentioned consumers can know with Boston assurance not only are these great businesses that had been vetted in alignment with our values.
Michael Seifert: This is on the near-term roadmap for us. Stay tuned. This is a feature that we've taken great lengths to ensure we're thinking through intentionally, and our team is as excited about it as you are. All right. I believe that that was our last question here. We as a management team, a board of directors, and a broader PSQ Holdings entity are very grateful for all of those who have joined us on this journey, whether as consumers, businesses, merchants, investors, or just interested participants.
Speaker Change: Expectations hold but consumer validation from the other members of the community that have deemed these businesses very worthwhile to go and shop from as well. So this is on the near term roadmap for US stay tuned. This is a feature that we've taken great lengths to ensure we're thinking through intentionally and our team is as excited about it.
Speaker Change: You are.
Speaker Change: Alright, I believe that that was our last question here.
Speaker Change: We as a management team our board of directors and a broader SKU holdings entity are very grateful for all of those who have joined US on this journey, whether as consumers business.
Michael Seifert: We have loved this journey so far, and we continue to reaffirm the strong belief that we are just getting started. We hope that all of you have a fantastic rest of the week, and thank you again for joining us on this Q1 2024 earnings call today. We'll talk soon.
Speaker Change: Merchant investors or just interested participants we have loved this journey, so far and we continue to reaffirm the strong belief that we are just getting started we hope that all of you have a fantastic rest of the weekend. Thank you again for joining US on this Q1 2024 earnings call today, we will talk soon.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.
Speaker Change: Yeah.
Ladies and gentlemen, please move cities.
Speaker Change: Thank you all for Chinese you may now disconnect.
Speaker Change: Yeah.
Yeah.
Speaker Change: