LIVE: Yahoo Finance's All Market Summit +: Small Business Recovery
. > THNAZ TYACK IS GOING TO SETTLE UP 50 POINTS AFTER A COUPLE DAYS CLOSING DOWN. S&P 500 AND THE DOW UP ALMOST 1% AND IT IS A NEW HIGH FOR THE I DO NOT EVER. IT'S GOING TO BE UPSETELLED ABOUT 315 POTS TO THE POSITIVE SIDE SECTORS THAT WERE PRETTY BIG TODAY. WE WATCHED ENERGY YESTERDAY UP TREMENDOUS ABOUT HALF A PERCENT BUT FINANCIALS WERE UP AND CONSUMER STAPLES UP BOTH MORE THAN 1%. DON'T GO ANYWHERE. STAY TUNED FOR A VERY SPECIAL YAHOO FINANCE ALL MARKET SUMMIT PLUS SMALL BUSINESS RECOVERY AS WE EXPLORE HOW AMERICA SMALL BUSINESSES CAN RETURN TO PROSPERITY.
SEOR TK A MASSIVE HIT BUT ITAL NOW AS THE COUNTRY OPENS UP SMALL BUSINESS IS GETTING BACK TO BUSINESS. REBUILDING, REIMAGINING, A LONG AWAITED RETURN TO PROSPERITY. JOIN US NOW FOR A LOOK AT THE CHALLENGES AND OPPORTUNITIES AHEAD ON THIS ALL MARKET SUMMIT PLUS SMALL BUSINESS RECOVERY. >>> WELCOME TO YAHOO FINANCES VERY SPECIAL ALL MARKET SUMMIT PLUS SMALL BUSINESS RECOVERY BROUGHT TO YOU BY WELLS FARGO. I'M SHAWNA SMITH. >> I'M ADAM SHAPIRO.
WE WILL TAKE A DEEP DIVE INTO THE HEALTH OF THE U.S. ECONOMY AND STATE OF SMALL BUSINESS AS AMERICA REOPENS ITS DOORS. JOINING US NOW IS TOM SULLIVAN VICE PRESIDENT OF SMALL BUSINESS POLICY AT THE US CHAMBER OF COMMERCE AND IT'S GO WHAT ARE YOU HEARING FROM BUSINESSES THAT ARE MEMBERS OF THE CHAMBER ESPECIALLY SMALL BUSINESS OWNERS ABOUT WHAT THEY NEED NEXT IN THIS PROCESS OF REOPENING THE ECONOMY.
>> THANK YOU. WE'RE HEARING THAT THINGS ARE LOOKING PRETTY GOOD. WE REPRESENT 3 MILLION BUSINESSES ABOUT 96% OF OUR MEMBERSHIP HAD FEWER THAN 100 EMPLOYEES. 75% OF OUR MEMBERSHIP HAD FEWER THAN 10 EMPLOYEES AND THAT INCLUDES MEMBERS OF ABOUT 500 TRADE ASSOCIATIONS IN BETWEEN 1600 AND 2000 LOCAL STATE AND REGIONAL CHAMBERS OF COMMERCE. WHEN I SAY THAT THINGS ARE LOOKING PRETTY GOOD AND HEARING POSITIVE THINGS I'M BASING THAT ON A QUARTERLY INDEX AT WE DO WITH OUR PARTNER METLIFE. OUR LAST SMALL BUSINESS INDEX SHOWED LOOKING AT MY NOTES HERE IT SHOWED AN INDEX LEVEL OF 55.9 AND THAT'S ACTUALLY UP 3
POINTS FROM THE END OF LAST YEAR. IT'S VERY POSITIVE. I THINK THE PRACTICING MATIC VIEW OF THINGS THOUGH IS NAH WE'VE STILL GOT A LONG WORRY TO GO TO REACH THE INDEX LEVEL ON 71.7 WHICH IS WHAT THE INDEX
WAS PREPANDEMIC. SO THINGS ARE LOOKING GOOD BUT WE'VE STILL GOT LONG WAY TO GO AND THAT'S CONSISTENT WITH WHAT I HEAR EVERY DAY FROM SMALL BUSINESSES. >> SO TOM WHEN YOU MENTION THAT GAP WHAT'S NEEDED IN ORDER FOR US TO GET TO THAT 70 PLUS LEVEL IS IT MORE ASSISTANCE FROM THE GOVERNMENT, SOMETHING ELSE? WHAT'S NEEDED. >> SO ERE'S TWO PARTS TO IT SHAWNA. THANK YOU FOR THAT QUESTION.
SO THE FIRST PART IS THE GRATITUDE SMALL BUSINESS OWNERS HAVE FOR THE FEDERAL AID I MEAN JUST THIS PAST WEEK EXHAUSTING FUNDING AND OVER THE COURSE OF 13 MONTHS SBA HELP LOAN MONEY IT WILL HOPEFULLY ALL BE CONVERTED TO GRANTS TO OVER 8 MILLION SMALL BUSINESSES SO THERE'S THIS ENORMOUS GRATITUDE AND THAT GRATITUDE CONTINUES TO SBA RUNNING ITS SHUTTER VENUE OPERATOR GRANT PROGRAM AND RESTAURANT REVITALIZATION FUND GRANT PROGRAM. ARE STILL NEEDED BUT WHAT WE'RE STARTING TO HEAR FROM SMALL BUSINESSES IS A DESPERATE NEED TO FIND AND IN THAT SENSE PLEASE DON'T MAKE IT HARDER FOR ME TO RECOVER. SO FOR INSTANCE THERE'S A PROTECT RIGHT TO ORGANIZE ACT THAT'S PASSED THE HOUSE OF REPRESENTATIVE.
SMALL BUSINESSES ARE TELLING US DON'T PENALIZE ME FOR GOING OUT ON MY OWN AND BECOMING A FREELANCER WHICH THE PRO ACT WILL DO. AND THAT PRO ACT IS EMBEDDED IN THE PRESIDENT'S INFRASTRUCTURE PLAN. SO SMALL BUSINESSES ARE SAYING THANK YOU FOR THE AID BUT NOW PLEASE WASHINGTON DON'T MAKE IT MORE DIFFICULT FOR ME TO RECOVER AND WE'RE HEARG THE SAME THING WHEN IT COMES TO TAX RATES.
SMALL BUSINESSES WANT INFRASTRUCTURE IMPROVEMENTS BUT 1.4 MILLION SMALL BUSINESSES THAT ARE ORGANIZED AS C CORPORATIONS DO NOT WANT A TAX HIKE. THEY WANTOBE ABLE TO GET TAX SAVINGS AND REINVEST THAT BACK INTO THEIR SMALL BUSINESSES SO THAT THEY CAN GROW THEIR WAY OUT OF A DIFFICULT 15 MONTHS. >> WE'VE HAD A BUNCH OF GUESTS TELLING US ABOUT THE LABOR SHORTAGES THEY FACED TODAY AND THE STUFF THEY'VE MENTIONED IT'S GOING TO TAKE MONTHS IF NOT LONGER IF IT GETS THROUGH IN THE DEBATE WHAT COULD IF ANYTHING THE GOVERNMENT DO RIGHT NOW TO HELP WITH THE LABOR SHORTAGE. >> SO A YOU MEAN OF THINGS. THERE ARE A LOT OF FEDERAL AID INITIATIVES THAT ARE JUST NOW HITTING THE STREET.
I MENTIONED SHUTTER VENUED OPERATOR GRANTS RESTAURANT REVITALIZATION FUND. LET'S NOT FORGET THAT A GOOD PERCENTAGE OF THESE BUSINESSES THAT RECEIVED PPP LOANS HAVE GOT TO CONVERT THOSE INTO GRANTS THROUGH WHAT'S CALLED FORGIVENESS SO THE FEDERAL GOVERNMENT SHOULD BE IMMEDIATELY SHIFTING INTO HELPING THOSE SMALL BUSINESS OWNERS IF FIGURE IT OUT WITH THE LEAST AMOUNT OF PAPERWORK, THE LEAST AMOUNT OF HASSLE SO THOSE SMALL BUSINESS OWNERS CAN FOCUS ON WHAT IS BECOMING VERY, VERY CLEAR. IT IS NOT GOING TO BE EASY TO FIND QUALIFIED AND WILLING EMPLOYEES. WE THINK THAT ITS BEST FOR SMALL BUSINESS OWNERSTO BE ABLE TO FOCUS EXCLUSIVELY ON THAT CHALLENGE AHEAD.
IT WILL GROW MAIN STREET INSTEAD OF LOOKING IN THE REAR VIEW MIRROR AND TRYING TO DO RED TAPE AND PAPERWORK JUST TO SIMPLY TAKE ADVANTAGE OF A NUMBER OF FEDERAL PROGRAMS THAT ARE DESIGNED TO HELP THEM. SO WE REALLY ARE LASER FOCUSED AT THE U.S. CHAMBER OF COMMERCE TO CONVINCE THE WASHINGTON D.C. FEDERAL BUREAUCRACY AND MAKE IT AS EASY AS POSSIBLE FOR SMALL BUSINESSES TO GROW AND WE'VE WEE GOT A WAYS TO GO. NGST >> TOM, SPEAKING OF HELPING MAIN STREET GROW WHAT DO YOU SEE IN TEMPLES OF NEW BUSINESSES BECAUSE WE KNOW MANY PEOPLE OBVIOUSLY WEREN'T STARTING BUSINESSES SOME WERE CLEARLY BUT ON A LARGER SCALE MANY HA DURG THE PANDEMIC.
HAS THAT STARTED TO PICK UP AGAIN? >> TWO RESPONSES TO THE GREAT QUESTION. THE FIRST IS TREMENDOUS NEWS. WE SEE THROUGH DATA FROM THE CENSUS BUREAU ON LIKELY NEW EMPLOYER FIRMS THAT WE'RE ACTUALLY ALREADY OUT PACING MULTIPLIER OF THREE TO FIVE TIMES THE GROWTH RATE COMING OUT OF THE LAST RECESSION. SO THINGS LOOK REALLY, REALLY GOOD FROM A NEW START UP PERSPECTIVE.
BUT AGAIN SMALL BUSINESS OWNERS ARE TELLING US IN WASHINGTON D.C. LIKE DOT KILL THE GOOSE THAT'S LAYING THE GOLDEN EGG. YOU KNOW, PASSING THE PROTECTIVE RIGHT TO ORGANIZE ACT IS ACTUALLY GOING TO PENALIZE FOLKS FOR STARTING A NEW BUSINESS AND DECIDING TO BE A FREELANCER. WE THINK THAT A STEP BACKWARDS NOT FORWARD SO FIGHTING THAT TYPE OF APPROACH WITH EVERYTHING WE GOT. >> VERY QUICKLY AS WE START TO WRAP UP THE OTHER ISSUE SMALL BUSINESSES WOULD FACE IS SUPPLY.
AND I'M NOT TALKING LABOR SUPPLY. MATERIALS, THE BIG HEADLINE THIS WEEK HAS BEEN THE SHORTAGE ARE YOU HEARING FROM SMALL BUSINESS OWNERS FRUSTRATIONS WHETHER IT BE INCREASES IN PRICES FOR THINGS LIKE PVC OR THAT KIND OF ISSUE WITH OTHER INPUT ITEMS? >> WE ARE. SO JUST YESTERDAY I SPOKE WITH A REMARKABLE SMALL BUSINESS OWNER IN JASON,MISSISSIPPI AND HE ISSUED A WARNING. HE SAID FOLKS, GET YOUR CATCH UP BECAUSE AS A RESTAURANT YOUR WHO BUYS THINGS IN BULK HE'S ALREADY SEEING A SHORTAGE OF KETCHUP AND HERE IS A LEADER IN A COMMUNITY THAT IS ACTUALLY HE JUST OPENED A BUSINESS SO THIS ANSWERS SHAWN'S QUESTION HE JUST OPENED A BUSINESS TWO WEEKS AGO HOSTING A VACCINE CLINIC IN THE PARKING LOT OF HIS BAKERY IN JACKSON, MISSISSIPPI SO IF HE CONCERNED ABOUT SOMETHING REALLY ONE OF THE LEADERS IN THE ENTIRE COUNTRY WHEN IT COMES TO SMALL BUSINESS AND WE SHOULD ALL BE WORRIED AND HIS MESSAGE TO US IN WASHINGTON D.C. WAS WHEN YOU ARE LOOPING BUSINESSES TOGETHER WHETHER IT'S ON TAX RATES ORUPPL CHAIN OR EMPLOYMENT CHALLENGES, MAKE SURE THAT YOU'RE SENSITIVE TO THE UNIQUE POSITIONS OF SMALL BUSINESS BECAUSE IN THIS CASE WHEN IT COMES TO A FEDERAL REACTION ONE SIZE DOES NOT FIT ALL WHEN IT COMES TO A MAIN STREET SMALL BUSINESS. CHAMBER OF COMMERCE THANKS SO MUCH FOR TAKING THE TIME TO JOIN US TODAY.
COMING UP NEXT HERE ON YAHOO FINANCE OUR EDITOR-IN-CHIEF SPEAKS WITH ECONOMIST ABOUT THE ECONOMIC RECOVERY AND WHY SHE SAYS WE'RE NOT OUT OF THE WOODS JUST YET. WE'RE BACK WITH MORE ON THAT IN JUST TWO MINUTE. >>> WELCOME BACK TO YAHOO FINANCE.
THE COVID 189 PANDEMIC TOOK A BIG TOLL ON AMERICA'S SMALL BUSINESSES IN 2020 BUT NOW AS THE COUNTRY BEGINS TO OPEN BACK UP WE HAVE REASON TO BE REVERY. IC ABOUT OUR ECONOM JOINING ME NOW IS ECONOMIST AND AUTHOR OF A NEW BOOK ON BOARDS AND HOW BOARDS WORK. NICE TO SEE YOU. >> HI. NICE TO SEE YOU.
THANK YOU FOR HAVING ME. >> SO AS I MENTIONED THE COVID- 19 DOWN TURN REALLY DID T SMALL BUSINESSES HARDER THAN BIG ONES. WHAT CAN WE FROM THE INITIAL U.S. ECONOMIC RECOVERY ABOUT HOW SMALL BUSINESSES WILL FAIR? >> WELL WE NEED TO PUT THINGS INTO CONTEXT.
WE ABSOLUTELY ARE IN FOR AN AMAZING REUND AND WE'RE SEEING EVIDENCE ALREADY. THE MARKETS ARE TO NEW HIGHS AND GREAT NUMBERS IN TERMS OF SENTIMENT AND THE NUMBERS ON GDP NOLTE JUST IN THE UNITED STATES BUT GLOBALLY ALSO. I THINK IT'S REALLY IMPORTANT NOT TO LOSE SIGHT THAT A REBOUNIS N A FUNDAMENTAL STRUCTURAL RECOVERY AND STILL A LOT OF STUFF THAT NEEDS TO BE RESOLVED. THINGS LIKE THE AMOUNT OF DEBT.
WE'VE NOT YET STARTED TO THINK ABOUT THAT DEBT DRAG AND HOW THAT MIGHT PLAY OUT. AS YOU KNOW JUST AROUND THE COVID CRISIS, 14% OF U.S. CORPORATIONS ARE WHAT THEY CALL ZOOM BEES D BY THAT I MEAN THEY'RE NOT EVEN ABLE TO COVER THE COST OF THEIR INTEREST ON THEIR DEBT USING THEIR CASH FLOW. SO REAL ISSUE STRUCTURALLY IN TERMS OF DEBT AND OF COURSE INFLATION. AND THE ONE HAND YOU WOULD THINK THAT THE INFLATIONY PRESSURES COULBENEFIT SMALL BUSINESSES CLEARLY THERE'S AGGREGATE DEMAND THAT HAS BEEN SHUT IN LAST YEAR WITH THE QUARANTINE AND COVID AND AS THAT COMES BACK AND LARGE BUSINESSES CONTINUE TO RELY ON SMALLER INSTITUTIONS YOU KNOW THERE ARE ABOUT 75 TO 85% OF HOW ECONOMIES RUN BUT EVERYTHING FROM THE SUBTRACTORS AND THE DELIVERY OF A LOT OF INPUT OF GOODS AND SERVICES TO LARGER SUPPLY CHAINS YOU KNOW WHAT HAPPENS THIS YEAR WILL BE ABSOLUTELY CONSISTENTLY CONSEQUENTLY IN TERMS OF SMALL BUSINESS AND THEIR RECOVERY. >> E-COMMERCE POSES A CHALLENGE FOR SMALL COMPANIES THAT DON'T HAVE ECONOMIES OF SCALE.
HOW CAN SMALL BUSINESSES ADAPT? >> WELL, E-COMMERCE THE REALITY IS THE JURY IS STILL OUT. AGAIN, BEFORE COVID HIT AND 2020 WE WERE ALREADY TALKING ABOUT WHAT THE IMPLICATIONS OF DIGITIZEATION COULD BE SPECIFICALLY AROUND E-COMMERCE SO MANY ASPECTS IN TERMS OF REDUCE COST AND THE BALANCE SHEET AS COMPANIES RESERVE INSTEAD OF PAYING SALARIES STARTING TO THINK ABOUT USING IT FOR RND SORT OF ON THE UPSIDE BUT ON THE DOWN SIDE THERE'S STILL A LOT OF WORK THAT NEEDS TO BE DONE IN TERMS THINKING ABOUT E-COMMERCE BEYOND SOCIAL NETWORKS AND CONSUMERISM WHAT DOES E- COMMERCE MEAN FOR A LOT OF THE BIGGER COSTS THAT BUSINESSES HAVE HAD TO ENDURE SUCH AS HEALTHCARE COSTS. IS THERE AN ANGLE IN E-COMMERCE THAT MIG FEED INTO THIS DISCUSSION. >> RIGHT. YOU SAID LAST YEAR THAT THE PANDEMIC WOULD LEAD TO A LARGER ROLE FOR THE GOVERNMENT AND THE ECONOMY AND WE CERTAINLY SEE THAT WITH A BIDEN AGENDA SO FAR. WHAT'S YOUR ASSESSMENT OF FEDERAL SPENDING SO FAR WHEN IT COMES TO SUPPORTING SMALL BUSINESSES AND WILL WE ED MORE OF IT? >> WELL, YOU KNOW, AT A VERY SUPERFICIAL LEVEL ON THE ONE HAND THE UNITED STATES DESPERATELY NEEDS INFRASTRUCTURE DESPERATELY NOT JUST TRADITIONAL INFRASTRUCTURE THAT FORMS IN ROADS AND AIRPORTS AND PORTS IN GENERAL.
WE ALREADY KN THAT. THE AMERICAN SOCIETY OF CIVIL ENGINEERS TALKS ABOUT AMERICAN INFRASTRUCTURE BEING GRADED A D PLUS. THIS IS NOT A FORMULA FOR SUCCESS. SO THAT'S GREAT BUT ON THE OTHER HAND $6 TRILLION OF CASH FLOWING IN WITH 85% OF US LOOKING TO RECEIVE A $1400 CHECK. YOU HAVE TO CHIME INTO THE NORMAL QUERIES ABOUT WHAT DOES THAT MEAN FOR TAXATION LONGER TERM WHAT DOES IT MEAN FOR INFLATION SO THOSE STRUCTURAL LONG TEMPLE EFFECTS WERE SOMETHING THAT MIGHT BASICALLY MAKE US SWOON THE SHORT TERM. LONGER TERM BUSINESSES ARE GOING TO HAVE TO BE THOUGHTFUL ABOUT HOW THEY THINK ABOUT THOSE WINDFALLS EVEN IF THEY ARE BELOW 400,000 ON THE INCOME TAX SIDE.
JURY IS STILL OUT. THERE'S A LOT OF STUFF THAT NEEDS TO GET GOING BEFORE THAT BUT I THINK TO THE EXTENT THAT WE INVEST NOT JUST TRADITIONAL INFRASTRUCTURE BUT ALSO IN DIGIT TIESATION WHERE THE U.S. IS LACKING IN MANY AREAS I THINK IT COULD BE GOOD FOR THE ECONOMY. >> YOUR NEW BOOK HOW IT WORKS AND HOW THEY CAN WORK BETTER IN A CHAOTIC WORLD FOCUSES ON GOVERNING STRUCTURES OF LARGER CORPORATIONS ESPECIALLY AS THEY NAVIGATE ISSUES LIKE SUSTAINABILITY AND DIVERSITY. WHAT MANAGEMENT LESSONS THOUGH CAN SMALL BUSINESSES LEARN FROM THEIR BIGGER COUNTERPARTS? >> YOU KNOW, I THINK IT'S QUITE SIMPLY THAT JUDGMENT MATTERS LIKE WE JUST HAVE TO GET BACK TO BASICS. GOOD JUDGMENT IS GOING TO CARRY YOU A LONG WAY.
I THINK THAT AND I FEAR ACTUALLY THAT IT'S VERY EASY TO GET OBSESSED WITH METRICS AND THE BROADER SORT OF ESG AGENDA AND THAT'S CRITICALLY IMPORTANT. DON'T GET ME WRONG. BUT WE'RE GOINTO HAVE TO HAVE JUDGMENT MAKE SURE THAT WE'RE NOT FIGHTING DISCRIMINATION WITH DISCRIMINATION.
WE DON'T WANT TO LOSE THE HIGH PERFORMING WHITE GUY. WE WANT TO MAKE SURE OUR EFFORTS AND CLIMATE CHANGE ARE NOT ALIENATING PEOPLE WHO ARE CONTINUALLY LIVING IN THE EAS OF ENERGY POVERTY AND MORE GENERALLY WHATEVER WE END UP DOING IN THE ESG AGENDA AND IT'S SO BROAD WORKER ADVOCACY AND AREAS OF OBESITY, GUN CONTROL. THIS IS A WHOLE SORT OF MIX OF THINGS TO TACKLE. WE WANT TO MAKE SURE THAT WE'RE NOT FOCUSED ON RISK MITIGATION ON THE DOWN SIDE. WE'VE GOT TO GROW AND THINK ABOUT OUTSIDE OPPORTUNITIES AS WELL. SO THAT TO ME IS CRITICALLY THE BIGGEST POINT.
I FEAR THAT THE ESG AGENDA PERHAPS INADVERTENTLY HAS NDED TO FOCUS ON RISK MITIGATION, CO2 AND WE'RE NOT REALLY PUSHING OR FOSTERING THAT DISCUSSION AROUND WHAT DOES THIS MEAN FOR ADVOCATING THAT ADDITIONAL MARGINAL DOLLAR THAT WE HAVE IN OUR POCKET AND THAT'S WHY I THINK THE CONVERSAON NDS GO. >> AUTHOR AND ECONOMIST AND HER NEW BOOK IS HOW THEY WORK AND CAN WORK BETTER IN A CHAOTIC WORLD. THANKS SO MUCH FOR COMING ON. >> PLEASURE ANDY.
THANK YOU. >>> MORE OF YAHOO FINANCE'S ALL MARKET SUMMIT PLUS SMALL BUSINESS RECOVERY RIGHT AFTER THIS. >>> THIS PRESENTATION OF YAHOO FINANCES SPECIAL ALL MARKET SUMMIT PLUS SMALL BUSINESS RECOVERY IS BROUGHT TO YOU BY WELLS FARGO. >>> WELCOME BACK TO OUR SPECIAL. WE HAVE BREAKING NEWS.
LOTOIS OUT WITH THE EARNINGS REPORT. JARED HAS THOSE NUMBERS FOR US. >> THAT'S RIGHT. I'LL GET TO THE NUMBERS IN A SECOND. LET ME CUT TO THE CHASE. MANAGEMENT IS GOING TO OFFER FULL GUIDANCE ON REVISED GUIDANCE ON THE CONFERENCE CALL AT 5:00 P.M.
SO WE'LL HAVE TO BRING THAT TO YOU LATER BUT FOR NOW THE REVENUE FOR PELOTON CAME IN AT 1.26 BILLION UP 141% YEAR-OVER- YEAR. THE ESTIMATE WAS FOR $1.2 BILLION.
CONNECTED FITNESS BEAT BY A CE MGIN OF 125 MILLION SUBSCRIPTION REVENUE THAT CAME IN JUST LIKELY HEAVY AT 23 # .4 MILLION PAID DIGITAL SUBSCRIBERS UP 400% TO 891,000. EST MEAT FOR 693, 990 D TH LOSS PER SHARE AT 3 CENTS PER SHARE AND HERE'S SOME ADDITIONAL COMMENTARY.
LOOKING AHEAD WE SEE SIGNIFICANT GROWTH OPPORTUNITIES IN A BROAD RANGE OF INTERNATIONAL MARKETS THAT WE HAVE NO LAUNCH ANNOUNCEMENTS TO MAKE AT THIS TIME. PELOTON BREAKING 2% DOWN IN AFTER HOURS TRADING. NOW WE'VE GOT TO GET TO SQUARE UP ONE AND A HALF PERCENT AFTER HOURS TRADING THEY HAVE NET REVENUE FOR THE FIRST QUARTER OF 3.16 BILLION YEAR-OVER-YEAR AND 3.37 BILLION WAS EXPECTED SO THAT WAS AMISS UP SLIGHTLY RIGHT NOW. TRANSACTION SERVICES REVENUE CAME IN AT 960 MILLION.
THEST HATE WAS 872.5 MILLION AND FINALLY A COUPLE MORE NOTES SUBSCRIPTION AND RVICE BASED REVENUE AT 557 DMRKS 7 MILLION UP 88% YEAR-OVER-YEAR ESTIMATE AT $495 MILLION AND HERE'S ANOTHER ONE GROSS PAYMENT VOLUME $33.1 BILLION UP 29% YEAR-OVER-YEAR.
ESTIMATE WAS FOR MUCH LOWER SO I THINK ALOF THOSE METRICS COMBINED ARE PROPELLING THE STOCK HIGHER. IN THE MEANTIME INVEST ERRS SHRUGGING OFF THAT REVENUE NUMBER. ONE MORE IS ROKU. IT IS ACTUALLY JUST HAVING ITS WORST DAY IN A WHILE DOWN 6.5%
TO A FIVE MONTH LOW BEFORE THE REPORT THAT REPORTED NET REVENUE FOR THE FIRST QUARTER OF $574 MILLION UP 79% YEAR- OVER-YEAR. ESTIMATE WAS 92.5MILLION. AVERAGE REVENUE $32.14. ACTIVE CUSTOMER ACCOUNTS 53.6
MILLION. THAT ALMOST BEAT SO IT WAS UP 35% SO A SLIGHT MISS AND GROSS MARGINS KNOCKING IT OUT OF THE PARK ABOUT 57% LOWER THE ESTIMATE WAS FOR LOWER AT 49% AND KING A LOOK ALTERNATIVE THAT STOCK GUESS WHAT? PRACTICALLY ERASING THE DAYS LOSS UP ABOUT 6% IN AFTER HOURS TRADING. GUYS? >> ALL RIGHT, JARED THANKS SO MUCH.
>>> WE WANT TO TURN TO SMALL BUSINESS IN THE PANDEMIC SPARKING MASSIVE GROWTH IN E- COMMERCE AS NSUMS TURN TO RETAIL GIANTS LIKE AMAZON AND TARGET BUT HOW CAN SMALL BUSINESSES BETTER COMPETE WITH SOME OF THE GIANTS. MELANIE HAD A CHANCE TO SPEAK WITH LAUREN AND UNION YES OF THE MATERIAL CO-FOUNDERS AND CEO. LET'S LISTEN TO WHAT THEY HAD TO SAY. >> SO I THINK WHAT 'VE SEEN OVER THE LAST YEAR IS A TESTAMENT TO THE RESILIENCE OF ENTREPRENEURS. ENTREPRENEURS STOOD UP IN A BIG WAY AND ADAPTED, PIVOTED THEIR BUSINESSES TO ENGAGE CHALLENGING TIMES AND AS A RESULT WE SAW REALLY GREAT EXAMPLES AND WE HAVE ONE OF THOSE GREAT MERCHANTS WITH THE MATERIAL ON WITH US TODAY OF TAKING ADVANTAGE OF OPPORTUNITIES WHEN YOU SEE THEM.
SO WHILE WE DEFINITELY SEE COUNTRIES OPENING UP AROUND THE WORLD AND PEOPLE GOING BACK TO NORMAL BEHAVIOR WE N'T SEE A SLOW DOWN IN DEMAND. PEOPLE ARE STILL SHOPPING. PEOPLE ARE STILL SPENDING MONEY. ONLINE CONTINUES TO BE THE PREDOMINANT MECHANISM FOR ENGAGEMENT WITH CUSTOMERS AND WE DON'T THINK THAT'S GOING TO GO AWAY.
WE THINK THE MIX CONTINUES TO CHANGE SO PHYSICAL WILL OPEN CK D PEOPLE WILL START TO SHOP IN PHYSICAL BUT YOUR ONLINE STORE AND YOUR CHANNEL APPROACH CONTINUES TO BE THE DOMINANT MECHANISM FOR RETAILERS OVER THE LAST 12 MONTHS AND WE THINK THAT CONTINUES FOREVER. >> GIVE US A MORE GRANULAR UNDERSTANDING OF E INDUSTRIES THAT YOU HAVE SEEN KIND OF PROVE THE RESILIENCY. I KNOW IT'S A CASE BY CASE BASIS BUT FROM WHAT I CAN TELL BEAUTY PRODUCTS, FOOD, CLOTHING, SPOTLIGHTS WHEN YOU THINK ABOUT THE AREAS THAT HAVE A SUCCESSFUL JOB. WHY DO YOU THINK THAT'S THE CASE? >> YOU'RE RIGHT.
IT IS VERY BROAD. WE SEE IT ACROSS A NUMBER OF CATEGORIES. HOME FITNESS OBVIOUSLY WENT CRAZY DURING THE PANDEMIC BECAUSE EVERYONE STILL NEEDED TO BE HEALTHY SO I THINK WE REALLY SAW A BROAD EXPOSURE OF PRODUCTS BEING ADTED. WE W THAT THROUGHOUT THE YEAR SO EARLY ON IT WAS ALL THE WORK AT HOME PRODUCTS AND WHILE THOSE CONTINUE TO BE BIG CATEGORIES AS THE PANDEMIC WENT ON YOU SAW A SHIFT TO COSMETICS CAME BACK. IT WAS SOFT AT THE BENNIN AND CAME BACK MIDWAY THROUGH AS PEOPLE REALIZE I'VE GOT TO BE ON THESE WEB CALLS AND LOOK GOOD AND FEEL GOOD.
SO IT'S A REALLY GREAT STORY ABOUT HOW RESILIENT WE ARE AS CONSUMERS BUT ALSO RESILIENT ENTREPRENES ARAS BUSINESS OPERATORS. >> AND SPEAKING OF EBSS FLOWS THE MATERIAL KITCHEN HAS BEEN AROUND SINCE 2017 MAKING BEAUTIFUL AFFORDABLE KITCHENWARE. GIVE US A SENSE OF HOW YOUR BUSINESS HAS GROWN AND HELPED YOU SUCCEED DURING THIS TIME. >> WE SAW EAY ON IN THE PANDEMIC OUR SALES UP 350% IMMEDIATELY BECAUSE PEOPLE RECOGNIZING THAT THEY MAY NOT HAVE THE GOODS AND THE EQUIPMENT THAT THEY NEEDED. EVEN NOW AS CITIES ARE STARTING TO OPEN UP THEY'RE STILL HOLDING ONTO SOME OF THESE GREAT SKILLS THAT THEY ACQUIRED DURING THE PANDEMIC SO EXPANDING INTO CATEGORIES LIKE TABLE TOPS, CERAMICS AND STARTING TO ADJUST THE WAY IN WHICH WE THINK ABOUT THE TYPES OF PRODUCTS THAT OUR CUSTOMERS ARE LOOKING FOR.
>> WHEN YOU THINK ABOUT THE FUTURE VISION OF WHERE MATERIAL PRODUCTS CAN BE UND I THOUGHT IT WAS ALWAYS FASCINATING PERHAPS OVER THE LAST FIVE YEARS PRIOR TO THE PANDEMIC THERE WAS THIS HUGE PUSH FOR E- COMMERCE PLAYERS TO THEN OPEN BRICK AND MORTAR IN CENTRAL LOCATIONS REALLY EXPENSIVE REAL ESTATE WHETHER IT'S THE WEALTHY PARTNERS OF THE WORLD HOW ARE YOU THINKING ABOUT THAT NOW THAT THE PANDEMIC UP ENDED THE WAY WE THINK ABOUT PHYSICAL STORES? >> IT'S A GREAT QUESTION. I THINK FOR US WHAT WE RECOGNIZED IS THAT WE NEED TO BE CONNECTING WITH OUR CUSTOMERS ON KIND OF EVERY TOUCH POINT THAT THEY CARE TO ENGAGE WITH US AND I THK THAT'S WHERE SHOPIFY HAS BEEN SUCH A GREAT PLATFORM FOR US TO BUILD OFF OF BECAUSE YOU CAN PLUG INTO IT IN SO MANY DIFFERENT WAYS SO IF WE ARE DOING SOMETHING WHERE IT'S A POP UP SHOP THERE'S A WAY TO DO SO AND STILL RUN THROUGH SHOPIFY TO HELP MAKE SURE WE UNDERSTAND WHERE PEOPLE SHOPPING WHAT CHANNELS ARE THEY PARTICULARLY FINDING OUT ABOUT US IN AND WHERE IS THAT ACTUAL TRANSACTION HAPPENING? SO I THINK NET AND NET BEING ABLE TO ENSURE IT'S A CONSISTENT EXPERIENCE AND THAT WHEREVER OUR CUSTOMERS ARE ENCOUNTERING US THAT THEY'RE GETTING SOMETHING THAT FEELS REALLY AUTHENTIC TO WHO WE ARE AS MATERIAL. >> YOU KNOW, LAUREN, SPEAKING ABOUT THE HEALTH OF THE CONSUMER WE DID SEE HOUSEHOLD INCOME RISE AT A RECORD PACE ACTUALLY UP 21.1% FOR THE MONTH
OF MARCH. WHEN YOU THINK ABOUT THE MACK ROE PICTURE HERE AND I KNOW SHOPIFY HAS A FIRM 20% OF THE COMPANY AND FINDING CREATIVE WAYS TO GET CONSUMERS TO BUY MORE PRODUCTS. DO YOU FEEL LIKE THERE WILL BE A POINT OF SATURATION? ARE WE EVEN CLOSE TO THAT POINT? CAN EVERYONE SHOULD EVERYONE CONTINUE TO THINK ABOUT BECOMING AN ENTREPRENEUR? I'M CURIOUS YOUR VISION THERE. >> IT'S A GREAT QUESTION AND SHOPIFY IS AN ENTREPRENEURSHIP COMPANY SO WE FUNDAMENTALLY BELIEVE AND ARE TRYING TO REDUCE AND REMOVE THE BARRIER ENTRY FOR ENTREPRENEURS. WE DO THINK IT'S A GREAT TIME TO BE AN ENTREPRENEUR. MORE BUSINESSES ARE BEING STARTED NOW THAN HAVE BEEN IN THE LAST DECADE.
THAT IS A SIGNAL TO THE WORLD THAT YOU CAN START THAT THE BEARS ENTRY ARE NO LOER A BIG AS THEY USED TO BE AND YOU CAN BE A BIG BRAND AND CREATE A BIG STORY RELATIVELY QUICKLY AND WE DON'T SEE THAT SLOWING DOWN. YOU ASKED ARE WE NEAR A PEAK? I DON'T THINK WE'RE ANYWHERE CLOSE TO A PEAK. I THINK WE'RE AT THE BEGINNING SEEING NOW THE TENTL ENTREPRENEURS AND WHEN YOU LOOK AT IT FROM OUR PERSPECTIVE THE GROWTH RATE OF ENTREPRENEURIAL BUSINESSES IS ECLIPSING THE GROWTH RATE OF BIG BOX AND THAT SHOWS YOU THAT WE AS CONSUMERS WANT TO SHOP LOCAL. 50% OF CONSUMERS NT TO SHOP AT A LOCAL STORE.
WE WANT TO SHOP FROM BLANDS WHO HAVE A BIG STORY. WE WANT TO KNOW THE PEOPLE AND COMPANIES WE BUY THINGS FROM AND THAT LINES UP DIRECTLY WITH ENTREPRENEURS LIKE UNION YES WHO CAN TELL A STORY AND SAY WE BUILT THIS FOR YOU VERSUS THE FACELESS CORPORATIONS THAT WORK PURELY ON COST BENEFIT AND SO THAT'S A GREAT TIME TO BE AN ENTREPRENEUR AND START SOMETHING AND WE SEE THAT ACCELERATING NOT SLOWING DOWN. >> AND A SPECIAL THANKS TO LAUREN AND EUNIS. WHEN WE COME BACK MORE AMS PLUS AFTER THIS COMMERCIAL BREAK. >>> AMERICA'S VACCINE ROLL OUT IS GIVING A HUGE BOOST TO THE U.S. ECONOMY AS THE DROP IN CORONAVIRUS CASES IS ALLOWING LOCAL GOVERNMENT AND BUSINESSES TO SUCCESSFULLY REOPEN.
JOINING US NOW RED BUTEL PUBLIC STRATEGIST FOUNDER AND NATIONAL BUSINESS ADVISOR TO THE BIDE CAMPAIGN. IT'S GOOD TO HAVE YOU HERE. 47% OF THIS ECONOMY IS POWERED BY SMALL BUSINESSES BECAUSE WE HAD A GUEST ON AT THE TOP OF THE HOUR FROM THE CHAMBER OF COMMERCE WHO WAS SAYING THAT THE PENDING PRO ACT WOULD HURT SMALL BUSINESS SO WHAT DO YOU WANT PEOPLE TO KNOW GOING FORWARD ESPECIALLY FROM THE PERSPECTIVE OF SMALL BUSINESS? >> SO THAT'S RIGHT. I MEAN LOOK TWO OUT OF THREE JOBS JUST UNDER HALF OF AMERICANS ARE EMPLOYED BY SMALL BUSINESS. THERE ARE A CRUCIAL PIECE OF THE PUZZLE.
I THINK WHAT WE'RE SEEING IN THE RESEARCH AND WHAT WE HEAR FROM SMALL BUSINESS OWNERS THMOST IMPORTANT THING THEY IS NEED TO GET THEIR BUSINESSES BACK UP AND ON TRACK. ACCESS TO CAPITAL IS A HUGE PART OF THAT. WE SAW THE PPP HELP US WITH THAT. THE BIDEN ADMINISTRATION MADE THAT EQUITABLE FOR SMALL BUSINESSES AND BUSINESSES OF COLOR WHICH IS REALLY HELPFUL. IN JUST THIS WEEKWE SAW THE ROLL OUT OF THE RESTAURANT REVITALIZATION FUND AND REALLY HELPING WITH A CRITICAL PART OF OUR SECTOR SO IF YOU THINK ABOUT WORKERS AND YOUR LOCAL RESTAURANT HELP IS HERE AND ON THE WAY AND SO A LOT OF THAT HAS BEEN GOOD NEWS AND THERE'S MORE WORK TO DO AND MORE VESTNT TO MAKE SURE THAT CONSUMERS HAVE MORE MONEY IN THEIR POCKETS FOR SMALL BUSINESSES TO THRIVE. THAT'S REALLY WHERE OUR FOCUS HAS BEEN.
>> OUR SMALL BUSINESSES TO THRIVE REALLY RIGHT NOW WE NEED MORE AND MORE PEOPLE TO GET VACCINATED. I KNOW YOU HAVE THE MAIN STREET INITIATIVE HELPING SMALL BUSINESSES LEAD THE WAY ON THIS. I AM CURIOUS WHAT YOU FOUND SO FAR IN TEMPLES OF SMALL BUSINESSES THE ROLES THEY'RE PLAYING AND WHAT FEEDBACK THEY'RE GETTING FROM THEIR WORKERS.
>> YEAH. IT'S A REALLY GREAT INITIATIVE. WE LAUNCHED REIMAGINE MAIN STREET AND HAVE BEEN FOCUSED ON PROVIDING EDUCATION AND RESOURCES TO SMALL BUSINESS OWNERS ABOUT VACCINATIONS AND PART OF THAT IS BECAUSE OF THE CRITICAL ROLE SMALL BUSINESS OWNERS PLAY IN OUR COMMUNITY THE TRUSTED MESSENGERS AND WHERE TO GET INFORMATION SO WE THOUGHT THESE FOLKS CAN BE VACCINE LEADERS AND WE DID SOME RESEARCH AND SAW THAT SMALL BUSINESS OWNERS SEE THIS ATTACHED TO THE LIVELIHOOD OF THEIR BUSINESSES THAT CAN GET UP TO SPEED.
QUITE FRANKLY GETTING THESE QUESTIONS FROM THEIR EMPLOYEES SO WE'VE BEEN HELPING ARM THEM WITH THE TOOLS THEY NEED TO BE RESPONSIVE AND WE'VSEEN A LOT OF POSITIVITY TO THIS IDEA THAT SMALL BUSINESS OWNERS CAN BE VACCINE LEADERS IN THEIR COMMUNITIES AND HELP THE EMPLOYEES AND COMMUNITIES GET VACCINATED SO WE CAN GET OUR ECONOMY UP AND GOING MORE QUICKLY. >> ARE YOU HEARING FROM THESE SMALL BUSINESS OWNERS AND OPERATORS ABOUT STAFF AT MIGHT BE APPREHENSIVE ABOUT GETTING THE VACCINE AND HOW DO YOU COUNSEL THEM TO ASSIST THOSE PEOPLE TO GET THE INOKAY LAGS? >> SO REALLY WE WANT EVERYONE TO MAKE THE DECISION THAT'S BEST FOR THEMSELVES AND FOR A BUSINESS OWNER MOST OF THEM ARE TAKING AN EDUCATIONAL APPROACH WHICH IS PROVIDING YOU MY EMPLOYEE'S WITH SOME EDUCATIONAL TOOLS. I AM TRYING TO GIVE YOU SCIENCE BASED DATA WHICH IS REALLY IMPORTANT BUT MOST OF THEM ARE TAKING THE APPROACH OF LETTING THE EMPLOYEES MAKE THEIR OWN CHOICE AND THAT SEEMS TO BE WORKING. THAT DOESN'T MEAN THAT EMPLOYEES DON'T HAVE QUESTIONS BUT OBVIOUSLY AT THE SAME TIME WHEN THEY TALK TO THEIR EMPLOYER GET THEIR QUESTIONS ANSWERED ABOUT THE SCIENTIFIC DATA THAT REALLY TENDS TO ALLOW FOLKS TO THINK ABOUT GETTING THE VACCINE AND THINK THAT IT MAKES THE BEST DECISION. WE'RE ALSO SEEING THEM PLAY AN IMPORTANT ROLE WITH THEIR COMMUNITIES SO AS BUSINESS OWNERS ARE SPEAKING OUT AND TALKING ABOUT THE IMPORTANCE OF VACCINATION PEOPLE ARE SEEING TH THAT AND ALSO DRIVING A LOT OF POSITIVITY IN COMMUNITIES AS WELL ACROSS THE COUNTRY.
>> RIGHT AND WITH HOW MANY SMALL BUSINESSES ARE REQUIRING THEIR WORKERS TO GET VACCINATED. >> SO DON'T KNOW BY THE NUMBERS. WE DID A FAIRLY LARGE SURVEY OVER 3000 EMPLOYEE RESPONDENTS AND SAW BETWEEN 10 AND 12% THINKING ABOUT REQUIRING IT. A LOT OF THOSE FOLKS RUN FIELDS WHERE IT MADE SENSE TO HAVE A MANDATORY REQUIREMENT BUT MOST FOLKS ARE TAKING THIS MORE EDUCATIONAL AND INCENTIVES BASED APPROACH LOTSOF EMPLOYERS DO THAT AS WELL AND REALLY THINK AN INCENTIVES BASED APPROACH IS WHERE WE ARE AT ALLOWING EMPLOYEES WITH THE RESEARCH DATA AND SCIENTIFIC INFORMATION TO MAKE THE DECISION THAT'S BEST FOR THEM AND THEIR FAMILIES.
>> SO WHAT HAPPENS NEXT ONCE WE HAVE THEM VACCINATED? SMALL BUSINESSES ARE STILL OUT OF THE WOODS ARE ARE THEY? >> VACCINATIONS JUST ONE PART OF THIS. WE REALLY THINK ABOUT THIS IN THREE WAY. THE FIRST PIECE IS GETTING THAT ACCESS TO CAPITAL TO SMALL BUSINESSES THEY NEED WHEN SMALL BUSINESSES THEY SAY CASH IS KING AND THAT'S TRUE AND THE GOVERNMENT HELPING THERE AN ALSO THE PRIVATE SECTOR TO MAKE RESOURCES AVAILABLE TO BUSINESSES. THE VACCINATION PIECE TO GET WORKERS BACK INTO JOBS AND GET BUSINESSES OPEN AND THINGS LIKE THAT. AND THEN PIECE THREE IS REALLY BUILDING BACK BETTER AND REALLY THINKING ABOUT THE LARGE INVESTMENTS WE NEED TO MAKE.
SO PARTIALLY THERE'S A POLI PLAY SO I THINK THERE'S A STIMULUS PACKAGE AND INVESTMENT PACKAGE THAT CONGRESS IS CONSIDERING RIGHT NOW WE THINK THAT WOULD BE REALLY HELPFUL TO GETTING THE ECONOMY GOING IN THE RIGHT DIRECTION AND ANOTHER PIECE IS REALLY HELPING SMALL BUSINESS OWNERS THINK ABOUT HOW DID THEY GO ONLINE AND EXPAND THEIR CUSTOM SE HERE AND HOME AND ABROAD SO REALLY A MULTI FACETTED PUZZLE THAT WE'RE THINKING ABOUT HERE AS SORT OF THIS BUILD BACK BETTER PROGRAM BUT WE'RE ALONG THE WAY WE HAVE WORK TO DO BUT I THINK WE'RE ALL ENCOURAGED BY WHAT WE'RE SEEING. >> RIGHT. DO YOU THINK WE'RE ON THE OTHER SIDE OF THIS AND HOW MANY SMALL BUSINESSES THAT ARE STRUGGLING RIGHT NOW DO YOU POTENTIALLY SEE STILL FAILING OVER THE NEXT COUPLE OF MONTHS? >> YEAH SO THE SAD STORY IS NOT ALL BUSINESS OWNERS ARE GOING TO MAKE IT OUT OF THIS CRISIS. WE SAW TOO MANY OBVIOUSLY NOT MAKE IT ALREADY AND THERE ARE SOME THAT ARE STILSTRULING I THI POSITIVE SIGNS IN THE LAST FEW MONTHS. WE HAVEN'T SEEN THE COMPLETE I DON'T THINK WE'LL REALLY UNDERSTAND SORT OF THE COMPLETE DAMAGE THAT WE'VE SEEN.
WE'RE OUT IN THE FIELD ACTUALLY RIGHT NOW WITH ADDITIONAL RESEARCH TO GET A BETTER UNDERSTANDING OF WHAT THIS LOOKS LIKE AND HAPPY TO REPORT THAT BACK BUT THE OTHER PIECE WE ARE SEEING AND SOME OF YOUR EARLY GUESSES WE'RE SEEING THIS IN SOME WAYS ACTUALLY CREATED AN EXPLOSION OF ENTREPRENEURSHIP AND THAT IS ONE SORT OF GLIMMER OF HOPE IN WHAT HAS BEEN A REALLY DIFFICULT YEAR. WE'RE SEEING ALL SORTS OF NEW BUSINESSES POP UP AND THAT TO ME IS SORT OF THE ART OF THE AMERICAN SPIRIT WHERE AN ENTERPRENURL NATION OUT OF COVID 189. >> GREAT TO HAVE YOU ON THE PROGRAM.
THANKS SO MUCH FOR TAKING THE TIME TO JOIN US. COMING UP NEXT COOKING UP A PLAN HOW ANDREW ZIMMER IS HELPG INDUSTRY STAGE A COME BACK. WE HAVE MORE ON THAT ON THE OTHER SIDE OF THE BREAK. >>> THIS PRESENTATION OF YAHOO FINANCES IS BROUGHT TO YOU BY WELLS FARGO. ♪ [ MUSIC ] ♪ >>> WELCOME BACK TO SMALL WITNESSES RECOVERY AMERICA'S RESTAURANT INDUSTRY WAS AMONG THE HARDEST HIT AS BUSINESSES WERE FORCED TO SHUT DOWN DURING THE PANDEMIC. HERE TO TALK MORE ABOUT THIS AND MUCH MORE IS EMMY AND JAMES AWARD WINNING TV PERSONALITY CHEF AUTHOR AND SOCIAL ACTIVIST ANDREW ZIMMER.
SO I WANT TO GET FRESH THOUGHTS AS WE SEE THE COUNTRY REOPENING AND VACCINATIONS IN MASS DISTRIBUTION RIGHT NOW. HOW ARE YOU FEELING HAVING BEEN IN THIS INDUSTRY FOR SO LONG AFTER SORT OF REACTING TO THIS UNPRECEDENTED YEAR. I FEEL LIKE CHARLES DICKENS THE THWORSOF TIMES. BEST OF TIS OUR INDUSTRY HAS BEEN HARDEST HIT OF ANY. WE HAVE HAD TO BE MOST RESILIENT. WE'VE BEEN FORCED TO PIVOT, REPIVOT, ZIG AND ZAG THE OTHER INDUSTRY AND YET AT THE SAME TIME HAVING JUST VISITED ATLANTA A FEW WEEKS AGO TO SEE A FOOD HALL OPENING WHERE 18 ENTREPRENEURS MADE IT THROUGH TO SEE THEIR SMALL BUSINESS TAKE MY HEART THE RESTAURANT RELIEF FUND.
THE PORTAL HAS BEEN OPENED FOR FOUR DAYS. I BELIEVE RECORD NUMBERS ONE IN FIVE RESTAURANTS IN AMERICA HAVELREA SIGNED UP BUT AHEAD OF THE ACTUAL SIGHT OPENING FOCUSING VERY RIGHTFULLY SO ON RESTAURANTS THAT THAT ARE OWNED BY WOMEN OR PEOPLE OF COLOR THAT HAVE BEEN FIRST THE FINANCIAL APPLE SO ON ONE HAND I'M FEELING VERY POSITIVE ON THE OTHER HAND MOURNING THE LOSS OF A SUBSTANTIAL PIECE OF OUR INDUSTRY OVER THE LAST 15 MONTHS. >> WHEN YOU THINK ABOUT THAT GRIEVING PROCESS I KNOW ONE OF THE ACTION ITEMS YOU WERE ABLE TO PARTICIPATE IN IS COULD FOUNDING THE INDEPENDENT RESTAURANT COALITION.
TELL ME MORE ABOUT HOW MUCH WORK IS AHEAD SCRRKS THANK U VERY MUCH. THE FOUNDING OF THE IRC WAS SOMETHING THAT HAPPENED VERY SPONTANEOUSLY OVER THE COURSE OF A WEEK 20, 30 OF US GETTING ON THE PHONE AND ZOOM CALLS AND SAYING YES, WE'RE GOING TO DO THIS THING AND THE BEST THING WE DID WAS MAINTAIN OUR SINGLENESS PURPOSE. WE WERE GOING TO FOCUS ON LEGISLATIVE CHALLENGES ON CAPITOL HILL AND GET LAWS TO PROVIDE GRANTS OF DIFFERENT TYPES TO HELP SUSTAIN OUR INDUSTRY. FOCUNG ON REAL-TIME L COULD POSSIBLY AFFECT OUR INDUSTRY AND SEEING IT HAPPEN TODAY WITH THE PORTAL BEING OPENED PROVIDING 25 PLUS BILLION DOLLARS TO THE RESTAURANT INDUSTRY IS FANTASTIC BUT IT'S JUST A START. WHEN DEMAND IS SO HIGH WHEN YOU Y A FIFTH OF OUR INDUSTRY HAS APPLIED FOR GRANTS ALREADY IN THE PORTAL NOT EVEN OPEN WE KNOW THAT WE NEED MORE MONEY WE WERE ORIGINALLY ASKING FOR $120 BILLION GRANT RELIEF A DROP IN THE BUCKET CONSIDERING THAT IN THE FOURTH QUARTER OF LAST YEAR ALONE WE LOST THAT MUCH MONEY IN GEP FROM RESTAURANTS. YOU HAVE TO REMEMBER IT'S THE SUPPLY CHAIN GOING IN.
93% OF THE MONEY MADE IN THE RESTAURANT GOES OUT THE BACK DOOR OF NEIGHBORHOODS AND COMMUNITIES. WE REPRESENT 5% OF GDP IN THIS COUNTRY, WELL OVER A TRILLION DOLLARS AND WE REPRESENT THE LARGEST EMPLOYER OF SINGLE MOMS RETURNING CITIZENS SECOND LARGEST EMPLOYER OF IMMIGRANTS, FIRST DEPENDING ON WHOSE DATA YOU LOOK AT. SADLY THE ECONOMIC HIT LAGS BEHIND. I THINK A LOT OF RESTAURANTS ARE GOING CLOSE IN THE NEXT MONTH BECAUSE THEY JUST CAN'T QUALIFY FOR MONEY THEY'VE TAKEN ON SO MUCH DEBT. THAT'S REALLY BEEN THE SORROWFUL STORY OF THE LAST 13 MONTHS.
IN THE PIVOTING AND REPIVOTTING AND REPOSITIONING OF THEIR BUSINESSES STAUNTS HAVE TAKEN ON DEAD AND OR SPENT EVERY LAST DIME THEY HAVE AND SO THEY CAN'T CONTINUE ANY LONGER UNLESS THEY GET THIS RELIEF. THAT $25 BILLION IS GOING TO GET EATEN UP BY 5:00 OR NOON AND WE NEED FURTHER GRANT RELIEF FROM THE U.S. GOVERNMENT. >> YEAH BUT WHEN YOU THINK ABOUT THE FUTURE OR PROMISE OF FUTURE STIMULUS HAVE YOU BEEN IN TALKS WITH SOME OF THOSE LAW MAKERS YOU JUST MENTIONED? WHAT HAVE THE DIALOGUES LOOKED LIKE AS YOU POINT OUT THE $28 BILLION PLUS SEVERATHOUND DOLLARS TO WORKING FAMILIES WITH CHILDREN THAT CAN'T NEARLY BE ENOUGH FOR WHAT WE HAVE TO RECOOP.
>> IT CAN'T AND THE CHALLENGE OF COURSE IS GETTING IN LINE. NOW WE HAVE THE EARS OF MAJORITY LEADER HOUSE MAJORITY LEADERELOS SO YOU KNOW, WE HAVE THE RIGHT PEOPLE COMMITTED TO HELPING RESTAURANTS. WE JUST KNOW THAT IT TAKES A LOT MORE THAN THAT COMMITMENT. YOU HAVE TO BE THERE IN THE ROOM WHEN THE PEN HITS THE PAPER AND THAT'S OUR CHALLENGE FOCUSING ON THE COMING MONTHS WE'RE IN TALKS WITH THE BIDEN ADMINISTRATION.
WE KNOW THE RIGHT GOVERNMENT AGENCIES. WE'VE BEEN IN CONCERT WORKING WITH THE SBA TO MAKE SURE THIS RESTAURANT RELIEF FUND GETS DOLLED OUT. AND QUICKLY SO THAT WE CAN MOVE ON TO GETTING MORE FUNDS SO WE'RE POSITIONED WELL.
WE JUST HAVE A LOOF WORK AHEAD OF US. >> REALLY FASCINATING INSIGHTS AND PERSPECTIVE. THANK YOU SO MUCH TO ANDREW ZIMMER. LOVE SPEAKING WITH YOU TODAY. >> THANK YOU. >>> MORE OF YAHOO'S SMALL BUSINESS RECOVERY RIGHT AFTER THIS QUICK BREAK.
STICK AROUND. >>> WELCOME BACK. SMALL BUSINESS RECOVERY GAUGING THE HEALTH OF ONE OF THE MOST IMPORTANT AND VITAL PARTS OF THE ECONOMY AND I SPOKE WITH MARY MACK WELLS FARGO SENIOR EXECUTIVE VICE PRESIDENT AND CEO OF CONSUMER AND SMALL BUSINESS ABOUT WHAT SHE'S SEEIN RECOVERY ON MAIN STREET. LET'S LISTEN. >> WE'RE STARTING TO SEE THE SAME THINGS THAT WE'RE ALL STARTING TO SEE AS CONSUMERS MORE OPTIMISM AMONG THE SMALL BUSINESS COMMUNITY SURPRISING ALL OF US. WE LOOK AT STUDIES THAT SUGGEST THAT 75% OF SMALL BUSINESSES HAD TO FIGURE OUT A DIFFERENT WAY TO OPERATE AND THEY'RE DOING THAT SO WE'RE ENCOURAGED BUT THERE'S A LOT OF RESILIENCY WORK THAT WE ALL NEED TO DO.
>> SPEAKING OF THAT LONG ROAD AHEAD WE KNOW THE GOVERNMENT EFFORT TO HELP SMALL BUSINEES 'VE SEEN MULTIPLE ROUNDS OF PPP THE LATEST ROUND THAT DEADLINE WAS EXTENDED TO THE END OF MAY. WAS THE GOVERNMENT DOING ENOUGH TO HELP SMALL BUSINESSES OR IS MORE HELP NEEDED. >> WE'VE BEEN ENCOURAGED BY THE EXTENSIONS BECAUSE THAT HAS GIVEN ACCESS TO MORE BUSINESSES SEEING A NUMBER OF BUSINESSES COMING IN FOR A SECOND ROUND.
BUT WE'RE ALSO SEEING A NUMBER OF BUSINESSES ACCESSING PPP FOR THE FIRST TIME AND THAT'S ENCOURAGING. WHAT WE KNOW AND THE GOVERNMENT MADE SOME CHANGES TO ENSURE ACCESS TO UNDER SERVED COMMUNITIES TO SMALLER BUSINESSES WE SAW THAT AND ACTUALLY EXECUTED OUT REACH TO ABOUT 550,000 OF OUR SMALL BUSINESSES IN INCOME AND HISTORICALLY UNDER SERVED COMMUNITIES AND WHAT WE SAW WAS A NUMBER OF THEM WERE ST LE TO ACCESS FOR THE FIRST TIME THE PPP DOLLARS AND AGAIN WE WERE ENCOURAGED BY THE, I DON'T KNOW, CLOSE TO 20,000 THAT CAME IN AS A RESULT OF THAT OUT REACH. >> MARY, WELLS FARGO I KNOW ALSO HAS OPEN FOR BUSINESS FUNDS LOSING ACCESS TO MINORITY LENDING. WHAT HAS DEMAND BEEN LIKE FOR THIS INITIATIVE.
>> REALLY HIGH DEMAND FOR OPEN BUSINESS. WE DECIDED AFTER THE FIRST ROUND OF PPP THAT WE ALL KNEW MORE WAS NEEDED AND SO WHAT WE COMMITTED TO DO WAS IT A 100% OF OUR GROSS PROCESSING FEES ABO FIRST ROUND AND PUT IT DIRECTLY BACK INTO SMALL BUSINESS RECOVERY. WORKING WITH COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS CD FIS WORKING WITH TECHNICAL ASSISTANCE AND THOSE BUSINESSES THAT NEED THE RETOOL OR RESILIENCY FORT AND WE WENT OUT TO THE BROAD COMMUNITY ACROSS THE COUNTRY RECEIVED A NUMBER OF APPLICATIONS AND WE'RE NOW GETTING THAT MONEY OUT INTO THOSE COMMUNITIES. >> MARY, WHAT ADVICE WOULD YOU HAVE OR DO YOU HAVE FOR SMALL BUSINESS OWNERS TRYING TO EXPAND OR START THEIR BUSINESS R THE FIRST TIME IN THIS EXTREMELY CHALLENGING ENVIRONMENT? >> WELL THERE ARE A LOT OF RESOURCES OUT THERE SO BUSINESSES AND BUSINESS OWNERS NEED TO FOCUS ON THE STRENGTH OF THEIR CREDIT AND THEIR CREDIT HISTORY. THAT'S REALLY IMPORTANT BUT ACCESS THE SMALL BUSINESS SITE ORGANIZATIONS LIKE WELLS FARGO HAVE A TON OF RESOURCES ONLINE AVAILABLE FOR SMALL BUSINESSES.
BUILD A BUSINESS PLAN. GET HELP. GET ADVICE. WE'RE INVESTING IN BROADER COMMUNITIES LIKE INSTITUTIONS THAT SERVE SOME OF THOSE HISTORICALLY UNDER SERVED COMMUNITIES TO KE SURE THAT EVERYBODY HAS ACCESS TO THOSE RESOURCES SO AVAIL YOURSELF OF IT. IT MIGHT BE A TRUSTED FRIEND OR COLLEAGUE SOMEBODY YOU'VE SEEN DOING THIS BEFORE WHO HAS ALREADY NAVIGATED THIS ROAD. GET ADVICE, LEAN ON IT, ASK FOR HELP.
IT'S A REALLY IMPORTANT PART OF THE PROCESS AND FIND A TRUSTED ADVISOR TO HELP YOU THROUGH IT. >> HOW LONG DO YOU EXPECT SMALL BUSINESSES TO RETURN TO NORMAL OPERATIONS AND THEN WITHIN THAT REALM THERE'S BEEN MANY CHANGES IN BEHAVIOR OVER THE LAST 12 MONTHS WHEN WE LOOK AT WHAT THE NEW NORMAL IS GOING TO LOOK IS THAT IN YOUR VIEW? S WH >> WELL THAT'S EXACTLY WHAT MY ANSWER TO YOUR QUESTION WAS GOING TO BE BUT I HAVE TO FIGURE OUT WHAT NORMAL IS FIRST AND I THINK IT WILL CONTINUE TO EVOLVE. IF THIS PANDEMIC HAD BEEN WHAT WE THOUGHT IT WAS A YEAR AGO AND WE WERE ALL NAVIGATING THIS FOR WEEKS OR MONTHS YOU MIGHT NOT HAVE SEEN SOME OF THE PERMANENT CHANGE THAT I SUSPECT WE'LL SEE OVER TIME AND AGAIN AS I MENTIONED OVER 75% OF COMPANIES THAT WE SEE ARE FIGURING OUT HOW TO RETOOL. I'M ILL PRESSED AND AMAZED IN THE GRIT AND RESILASY THAT WE SEE AS THEY REDEFINE WHAT THEIR MODEL IS AND FIGURE OUT WHO THE CONSUMER IS AND HOW THE CONSUMER IS GOING FOR IT. I DON'T KNOW THAT'S GOING TO BE A STATIC ANSWER EITHER.
IT WILL PROBABLY CONTINUE TO EVOLVE. >> SPEAKING ON THE CREDIT PERFORMANCE ON THE CONSUMER SID WHAT ARE YOU EXPECTING IN TERMS OF SPENDING TRENDS FOR THE SECOND HALF OF THIS YEAR? >> WE'RE SEEING THE LATEST ROUND OF STIMULUS HAS BEEN REALLY IMPORTANT TO CONSUMERS. WE DID SEE SOME SPINNING PICK UP AFTER THE STIMULUS PAYMENTS WERE OUT AND WE COULD SEE PEOPLE BEGIN TO LEAN BACK INTO THINGS WE HAVEN'T DONE SO WE'LL SEE. I'M IMPRESSED WITH THE RESPONSIBILITY AND THE FOCUS ON CONTROLLING BT, REALLY TAKING CARE OF YOUR OWN FINANCES FIRST THAT I THINK IS A VERY HEALTHY SIGN FOR THE CONSUMER BUT WE DO ANTICIPATE IT WILL CONTINUE TO IMPROVE OVER TIME AS EVERYBODY GETS MORE COMFORTABLE WE'VE GOT MORE ACCESS. WE DEVELOP MORE IMMUNITY THROUGH VACCINES ET CETERA THROUGHOUT THE COUNTRY SO WE'RE LOOKING FORWARD TO THAT.
>> A COUPLE THINGS TO THE CONVERSATION WITH HER ONE WAS ONE THING WE'VE HEARD SML BUNESS ARE GETTING R THAT MORE OPTIMISTIC AT THIS POINT THAT THEY ARE RECOVERING THAT THEY ARE A LITTLE BIT MORE POSITIVE OVER THE NEXT COUPLE MONTHS BUT THE ONE THING HE DID SAY WAS THE NUMBER THAT STILL NEED HELP AND THE LATEST ROUND OF PPP THE NUMBER OF SMALL BUSINESSES WERE STILL GETTING LOANFOR THFIRST TIME AND THAT SPEAKS TO YES THINGS HAVE IMPROVED BUT STILL A NUMBER OF SMALL BUSINESSES ARE NOT IN THE SPOT OF WHERE THEY WOULD LIKE TO BE RIGHT NOW. >> IT'S INTERESTING WHAT STANDS OUT FROM THE DIFFERENT DISCUSSIONS THAT WE'VE HEARD IS GETTING BACK TO %FO >>> YOU HAVE TO MAKE SURE YOUR EMPLOYEES ARE VACCINATED AND WE TALKED TO ONE OF THE GUESTS THAT SOME EMPLOYEES ARE AFRAID TO GET THE VACCINATION, SO THERE IS THAT ISSUE AND THEN THE SUPPLY ISSUE, BECAUSE, YOU KNOW, WHAT WAS IT? GET YOUR KETCHUP NOW IS SOMETHING SULLIVAN SAID. SMALL BUSINESSES NOT ONLY HAVE TROUBLE GETTING PEOPLE BACK TO WORK, BUT THERE ARE SUPPLY ISSUES THEY ARE FACING.
>> YES. CERTAINLY. THAT IS THE CASE ACROSS THE COUNTRY. WE HEARD THAT FROM A COUPLE OF OUR GUESTS. NOT PARTICULAR AREAS BUT ACROSS THE COUNTRY. HE SAID VACCINATION IS THE KEY HERE TO GETTING SO MANY OF THESE SMALL BUSINESSES BACK TO WHERE WE WERE PREPANDEMIC.
OF COURSE THE ONE ISSUE IS CONVINCING THOSE PEOP WHO HAVE BEEN HESITANT AS TO WHY THEY SHOULD BE GETTING THE VACCINE SO HOPEFULLY MORE AND MORE EMPLOYEES AND CUSTOMER WILL GET ON BOARD WITH THAT BUT WE'LL SEE. >> ALL RIGHT. WE APPRECIATE YOU JOINING US FOR THIS HOUR. THIS WRA UP.
THANK YOU FOR BEING HERE.
2021-05-08 22:39
