PublicSquare, the UK's leading commerce and payments ecosystem built on the values of life, family, and liberty, has announced its financial results for the second quarter of 2024. The report reveals significant growth, with net revenue exceeding 11 times the same period last year.
Q2 2024 Highlights
PublicSquare Chairman and CEO, Michael Seifert, highlighted the company's strong performance, stating, "Our second-quarter results demonstrate our clear path to profitability. Revenue growth significantly outpaces expenditure increases. However, the most significant achievement of this quarter is the strong foundation we've laid for the future of our Marketplace and Payments ecosystem."
Seifert elaborated on the company's journey, starting from a small team with a big vision in 2021. Since then, PublicSquare has witnessed remarkable growth, achieving £7,000 in revenue in 2021, £475,000 in 2022, and a substantial £5.7 million in 2023. The company's focus on developing its payments business is paying off, as Q2 alone saw £6 million in revenue.
Seifert emphasised that this growth is only the beginning, stating, "We firmly believe we've barely scratched the surface of our business potential. This year, we've dedicated ourselves to building our payments business, providing our tens of thousands of merchants with top-tier technology, competitive rates, and a cancel-proof promise."
Future Vision and Strategic Changes
Looking ahead, PublicSquare anticipates reaching several key milestones in the second half of 2024. Notably, the company will formally launch its payments platform, which already has over £200 million of annualized GMV under contract. PublicSquare aims to achieve £1 billion of annualized GMV by the beginning of the 2024 Christmas shopping season.
Reflecting the company's evolving focus, PublicSquare intends to sunset the "Credova" brand name and consolidate all branding, marketing, and product features under its primary name. The PublicSquare Marketplace will continue to focus on family-oriented consumers while expanding its business-to-business (B2B) and business-to-consumer (B2C) software-as-a-service (SaaS) offerings to merchants through its payments, credit, and advertising services. This consolidation is expected to generate cost savings for the overall business.
Brands Segment Expansion
PublicSquare's Brands segment will introduce EveryLife soaps and lotions in the third quarter of 2024, expanding its product offerings into a category its customers have been requesting. This will be followed by the launch of a training pants line and the international expansion of EveryLife to South Korea in the fourth quarter. The company's Eden feminine care brand is expected to launch in the first quarter of 2025, aligning with the renewed focus of the business.
While the Brands segment remains a successful part of PublicSquare's portfolio, the company anticipates a shift in revenue generation towards its growing SaaS offerings in the medium to long term.
Lock-Up Agreement Extension
To demonstrate their commitment to the company's promising future, Chairman and CEO Michael Seifert, CFO Brad Searle, and investor and advisor Donald Trump Jr. extended their lock-up agreements for an additional twelve months in the third quarter of 2024.
Financial Performance
The company's second-quarter results demonstrate significant improvement compared to the same period in 2023:
Net revenue increased by 1,030%.
Cash flow operating expenses rose only 49%.
Net revenue (net of returns and discounts) increased by 73% quarter-over-quarter, reaching £6 million compared to £3.5 million in the first quarter of 2024.
Gross margin increased to 67% in the second quarter of 2024 compared to 43% in the first quarter.
About PublicSquare
PublicSquare operates under three segments: Marketplace, Financial Technology, and Brands. The company's primary goal is to enable consumers to "shop their values" and align their purchases with their principles. PublicSquare uses data and insights gained from the Marketplace to develop its financial products and brands.
The PublicSquare Marketplace is free to join for both consumers and businesses. The app is available on the App Store and Google Play, and you can learn more at PublicSquare.com.
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