PublicSquare: Creating a Parallel Economy in 2024
In today’s newsletter:
- PublicSquare: Creating a Parallel Economy in 2024
- Trucking Along, The Rising Dow, and Gen Z’s 2024 Profile
- How to Track What’s Working – You Need an M.I.S.
It took Amazon 9 years to turn a profit. It took Twitter 2 years to reach 1 million users.
We understand that tech companies take time to build their infrastructure and user base. Starting something new is a hefty undertaking, and investors are wise to be patient with exciting new companies that disrupt the status quo, even if it seems like a longshot at first.
So, it’s worth mentioning that Michael Siefert’s ecommerce platform, PublicSquare (sic), may very well be on its way to joining the ranks of very successful tech startups. It reached 1 million active users in only a year. It could very well turn a profit in half the time it took Amazon. Time will tell, but there are reasons for both optimism and caution as we examine the strengths, hype, and upward trajectory of PublicSquare.
What Is PublicSquare?
PublicSquare was born out of a desire to see a “parallel economy” – a marketplace that rewarded local small businesses, American-made products, and pro-family, pro-faith institutions, rather than a marketplace that rewards huge multinational corporations with harsh working conditions overseas that give money to abortion providers and radical LGBTQ+ initiatives for children. The idea is to connect consumers with conservative, grassroots values with sellers who share (and exemplify) those values.
“We’re actually trying to shift who wins in our economy,” says CEO Michael Siefert. “This is a long game. The left understands that, by the way. They know it’s a long game, and they’ve been planning for this for thirty, forty years. We have to have the same mentality… I’m doing this for my daughter.”
PublicSquare has an Amazon or Etsy-like UI that allows people to search for products they’d like to buy (from over 75,000 businesses), an easy check-out system, and it’s free for both consumers and businesses to use. PublicSquare vets each business that applies to be part of their ecosystem according to 5 key values:
- Pro-Life and Pro-Family
- Pro-Freedom and Truth
- Pro-America
- Pro-Constitution
- Pro-Small Business
They make their money by selling in-site advertising space to sellers who want their products to rank at the top of a given search, though they may pursue other monetization strategies in the future as well. PublicSquare does not harvest or sell user data, and is committed to being a place that is just for buying and selling the things people want and need – no lectures, no weirdness, no guilt.
“When consumers come to the parallel economy,” Siefert says, “[they know] that they’re not going to be lectured about gender ideology when they’re just trying to buy a pair of pants.”
How It’s Going – Diving Into the Financials
PublicSquare released its Q1 financials on Wednesday of last week, and there’s a lot going on.
“The first quarter 2024 was yet another monumental quarter for PublicSquare with net revenue increasing 9.2x and cash flow and operating expenses only rising 2.2x compared to first quarter 2023,” their CEO reports.
Users are increasing, brand engagement is up, and revenue is way up. At a glance, the Q1 financial statements look… strange. But that’s because PublicSquare acquired BNPL provider Credova in an all-equity deal that greatly altered PublicSquare’s balance sheet. Credova, a $15 million company (which was profitable last year), provides a leg up to PublicSquare, as it is the only BNPL platform in the country that services gun purchases. Credova’s CEO, Dusty Wunderlich, said that the acquisition demonstrated “our collective dedication to building financial infrastructure that upholds our values and protects our community.”
PublicSquare estimates its year-end exit run-rate revenue at around $50 million for 2024 – not a bad upgrade from $5.6 million in net revenue for 2023 – which wasn’t a bad upgrade from $475k in net revenue for 2022.
PublicSquare is moving fast. The 10x is real.
PSQ Holdings, as they are known on the NYSE, currently operates four subsidiaries: PublicSquare (the online shopping platform), EveryLife Inc. (a pro-life diaper brand), Credova (BNPL services), and PSQLink (a set of B2B growth tools).
That’s the good news. Here are some of the challenges:
PublicSquare is currently at a $15 million operating loss, though as of August last year, the company reported that it was on track to turn a profit in 2024. If they are able to continue increasing revenue and user base while controlling rising expenses, they might just be able to do it. But, as with all projections, that is an “if,” not a certainty. In Q1 2024, PublicSquare’s net revenues of $3.47 million were offset by total costs and expenses of over $18 million – but that may well be frontloaded, so time will tell. For the moment, they have less than $10 million in cash, a heavy liability load, and a lot of big expenses in the near future. I’m not sure how Q1, with $3 million in revenue, gets forecasted as $50 million by year’s end unless they are heavily banking on jaw-dropping growth.
PSQH does not look like a smashing success according to its current stock price on the NYSE – After an IPO where the ticker debuted at around $10 last year before briefly rising to $14, the share price has been on a steady downward slide since then, currently sitting at under $4/share. It is still early for the young company, however, and according to one source, PSQH is a “strong buy” recommendation, forecasted at $7.5 for 12 months (though to be fair, the put/call ratio has recently passed neutral and currently stands at 1.17, which implies investor bearishness).
Some critics accuse the company of offering misleading statistics about their real user base, and claim that rather than an alternative to Amazon, PublicSquare faces the same set of challenges that killed Groupon. Advocates, however, say PublicSquare is a real and viable alternative marketplace, and a “revolution” that will show the triumph of American values over corporate excess.
It’s a David and Goliath story – but as we all know, sometimes the little guy can pull off the win. While we’re certainly rooting for Public Square, at the end of the day, it won’t be about who we would like to see succeed; it will be about how well PublicSquare can meet a real felt need in the marketplace, sustainably, for years to come.
TL;DR
PublicSquare is employing an aggressive, fast-growth strategy to reach a sustainable economy of scale in the online shopping space. It is still early, the future is full of very real risks, and the outcome is not yet certain, but there are some reasons to be hopeful for this fledgling tech company seeking to solve a very real problem for millions of American consumers who just want to shop in peace, guilt-free.
“While we’re not an explicitly Christian company,” Siefert says, “we are a company that is also unashamed about why we’re doing what we’re doing. I wake up every morning in prayer and have to go to bed every night in prayer because this whole thing is dependent on God.”
Sent to Win is for entertainment purposes only, and this article does not constitute financial advice. For investment tips and financial planning, please visit a certified investment broker or financial planner.
INDUSTRY INSIGHTS
Trucking Along, The Rising Dow, and Gen Z’s 2024 Profile
Trucking Along
The price of American trucks has finally started to fall after rising sharply in the last few years. Many full-size pickup trucks now bear a sticker price of over $100k (even amidst quality control issues), and the inventory has started to pile up. The all-electric F-150 Lightning, which can cost upwards of $95k, will see reduced production amidst a lack of consumer interest, even as other brands have begun promising consumers bargain prices for future models. Toyota, for instance, now offers a $10,000 no-frills pickup called the IMV-0 (unfortunately not available in the United States). Not to be outdone, GM has announced a similar $8,000 model that will also, unfortunately, only be available overseas. Nevertheless, even in the U.S., 2024 will be the most affordable year to buy a truck since 2019, with the smaller, cheaper Toyota Tacoma selling very well.
The Rising Dow
Last week, the Dow Jones closed above 40,000 for the first time ever, triggering a spike in futures to start this week. The Dow first crossed the 10,000 mark in 1999 before crashing in the dot com collapse, first hit 20,000 in 2017, and first hit 30,000 just four years ago, in 2020. Some say the rapid milestones don’t matter and roll their eyes at the methodology employed by the index. Others see it as a significant effect of increased corporate earnings, increased company size (centralization?), and increased speculation via much higher P/E ratios – trends that some say could continue and cause a 5.5% annualized real returns over the long haul. Others see the rapid increases as signs of a bubble, in part caused by an unrealistic expectation of future AI-related earnings growth and the widespread corporate practice of stock buybacks, which was illegal and categorized as market manipulation until 1982. Other experts expect the stock market to rise another 30% before the theoretical bubble bursts but admit riding this bubble is a risky strategy even while advising investors to do so. Whatever the case may be, the Dow is rising – and so is everything else.
Gen Z’s 2024 Profile
Gen Z adults aged 22-24 make less money today than their Millennial counterparts made ten years ago (inflation-adjusted), and they carry more debt as well. Fortune cites research on macroeconomic conditions to conclude that Gen Z really does “have it worse financially” than earlier generations, leading to a lot of economic anxiety and a widespread doubt that they can ever own a home of their own. Barely more than 50% of Gen Z adults identify as Christians, with 34% being entirely unaffiliated with a religion. Fewer Gen Zers approve of President Biden compared with other age groups, Gen Z adults drink far less alcohol than other generations, and they are actually less likely to report “not planning to get married” than Millennials, though a strong majority feels that it is too expensive to get married right now, in the current economy. They are less sexually active than previous generations and far more likely (28%) to identify as LGBTQ+. Bloomberg admits young adults have it tough, but they say part of the reason is an unrealistic sense of the economic value of their work. Gen Z spends a lot of time on screens, with a plurality of screen time dedicated to gaming. Gen Z can be difficult to effectively reach with marketing, in part because they are more skeptical of institutions. Forbes provides a list of advice on how to effectively advertise to and interact with Gen Z online.
Sunday School
Q. What book is traditionally the final book of the Old Testament?
A. Chronicles. If you said Malachi, that is because the Hebrew Scriptures were reordered sometime in the first few centuries after Christ’s crucifixion and resurrection, likely by Christians who had lost touch with the Jewish tradition. The Bible Project offers insight on how ending the Hebrew Scriptures with Chronicles gives a slightly more holistic reading experience.
“Look, I agree that it’s a bold strategy… But I still don’t think you should tell the boss your process for deciding on these kinds of things.”
TIPS & TRICKS
How to Track What’s Working – You Need an M.I.S.
This is your sign to thoroughly track your marketing efforts and customer analytics.
Far too often, we shoot from the hip when we are trying to rustle up new business for our enterprises. In a way, this makes sense. For all of the talk about customer avatars, analysis, and advertising principles, practically speaking, it can be very difficult to know what is going to work. At times, it’s not the worst idea to throw some spaghetti at the wall and see what sticks.
This is how creativity functions, after all. When we are tackling a new challenge, we have to be careful not to be overly critical of ourselves so that we can find out which ideas really have room to run.
The key, however, is not staying in this space forever. “Spaghetti at the wall” is fine for a new venture, but for a mature endeavor, it is crucial that we analyze what has been done before, extract the parts that are working, discard the parts that aren’t, and iterate to a fine-tuned, sophisticated strategy.
Creativity is good; “shiny object syndrome” is not.
One of the primary ways we can make sure to capitalize off of past success and avoid repeating our mistakes as we iterate to better and better marketing is by implementing a Marketing Information System (M.I.S.)
What Is an M.I.S.?
An M.I.S. is essentially a database and data-tracking system where you keep tabs on the results of your marketing efforts. If you’ve ever seen a “How did you hear about us?” box at checkout in an online store, this is one example of a process that would belong under a Marketing Information System.
In order to set up your own M.I.S., there are a few key things to keep in mind:
Be Very Specific
Remember that “how did you hear about us?” box we mentioned above? That isn’t much help if the options are vague and do not differentiate between various marketing efforts. “Online” may not give you enough information. Which campaign caught their eye? What website or social media channel? Be as specific as possible when ascertaining what is and is not bringing customers in the door – and for bonus points, note the purchasing habits of customers who come in from disparate channels. Are they repeat customers? Do customers from TikTok spend less money than customers from Instagram?
You need to know these things in order to make sure your marketing becomes more effective over time.
Use Integrated Technology to Aggregate All of the Data Relevant to Your Business
There are a number of tools out there to assist you in keeping track of key customer metrics, so take the time to learn the ins and outs of all the software you are using (especially payment processing software). Import data from your email platform and SMS platforms to a master database. Use Google Analytics and eCommerce platform analytics to monitor site performance and conversion rates. SEMRush and Google Search Console provide more data into your site’s organic traffic. Dive into Facebook Business’ analytic tools and do split tests on ad campaigns whenever possible. The possibilities are endless when it comes to data, but as Fidelitas CEO Tyler Sickmeyer says that it’s important to find a “true north” with your data. Sickmeyer adds that if your cash register isn’t ringing, your leads aren’t coming in, the other metrics are the equivalent of marketing participation trophies.
The M.I.S. is certainly about what is working in terms of messaging and getting people in the door – but it’s also about brand management, increasing average dollars per purchase, and customer satisfaction.
Generate Reports at Least Monthly, But Zoom Out Too
Marketing, like almost everything else in business, is really all about R.O.I. In order to use your limited resources to bring in the most revenue possible, you’ll want to regularly check in with all this data you are collecting. This will allow you to build customer avatars that are more than common sense or a gut feeling. Real, data-driven market research is often the difference between industry dominance and mediocrity.
So, make the charts, look for patterns, and get in a room with your key decision-makers at least monthly to go over what’s working, what isn’t, and (the ten million dollar question) how can we do better? Be sure to keep timing in perspective. A winter apparel brand’s sales are going to tank every spring, and nothing short of Texas freezing over will change that. Brands with seasonal peaks should study Year-over-Year data as opposed to Month-over-Month.
If all of this sounds overwhelming, you can, in fact, hire a reputable marketing firm, such as Fidelitas, to keep track of all this for you. But even if you do – read the reports they give you. Stay involved, and always be ready to make steady adjustments to capitalize on whatever new information has come in.
Knowledge really is power.
Quick Hits
- Inflation was down slightly from last month, but still coming in at a 3.4% annualized rate, or 75% above the Fed’s target.
- The NFL sold out of women’s Harrison Butker jerseys after he upset liberals with a pro-family graduation speech at Benedictine College.
- 12,000 Baptisms across California in 48 hours is just the first step for this growing movement.
- “All You Can Eat Shrimp” promo takes popular seafood chain Red Lobster into bankruptcy.
- Sorry, kids – Goofy’s on his union-mandated break. Disneyland characters vote to unionize.
- Christianity Today analyzes the shifting and loosening cultural taboos within evangelical churches.
Our “PublicSquare” graphic was generated using AI prompts. Guess the prompt for your chance to win Sent To Win gear. Just reply to this email with your best guess.
For Kingdom Leaders, By Kingdom Leaders
Bringing Kingdom-minded leaders like you fresh perspectives and insights on business, finance, and leadership trends.
