On August 7, 2024, Forge Global Holdings Inc (FRGE, Financial) released its 8-K filing detailing the financial results for the second quarter of fiscal year 2024. Forge Global Holdings Inc is a financial service platform created to serve the needs of the private market. It provides marketplace infrastructure, data services, and technology solutions for private market participants. The Company offers a trusted trading platform, proprietary data and insights to inform investment strategies, along with custody services to help companies, shareholders, institutions, and accredited investors confidently navigate and transact in the private market.
Performance Overview
Forge Global Holdings Inc (FRGE, Financial) reported total revenue less transaction-based expenses of $22.0 million for Q2 FY2024, a 15% increase quarter-over-quarter and a 32% increase year-over-year. This performance exceeded the analyst estimate of $20.40 million. The company also reported a net loss of $14.0 million, an improvement from the $19.0 million net loss in the previous quarter.
Key Financial Metrics
| Metric | Q2 FY2024 | Q1 FY2024 | Q2 FY2023 |
|---|---|---|---|
| Total Revenue Less Transaction-Based Expenses | $22.0 million | $19.2 million | $16.6 million |
| Net Loss | $14.0 million | $19.0 million | $25.1 million |
| Adjusted EBITDA | -$7.9 million | -$13.5 million | -$11.8 million |
| Cash and Cash Equivalents | $120.5 million | $130.7 million | $160.8 million |
Operational Highlights
Forge Global Holdings Inc (FRGE, Financial) saw significant growth in trading volume, which increased to $426.3 million in Q2 FY2024, up 62% quarter-over-quarter and 178% year-over-year. The net take rate was 2.7%, a slight decrease from 3.2% in the previous quarter. The company also reported an increase in total marketplace revenues, less transaction-based expenses, to $11.4 million, up 35% quarter-over-quarter and 103% year-over-year.
Strategic Initiatives and Expense Reductions
Forge Global Holdings Inc (FRGE, Financial) announced planned expense reductions aimed at improving margins and achieving annualized savings of approximately $11.3 million. These reductions include a decrease in headcount costs by roughly 11%.
“In Q2, we recorded our fifth consecutive quarter of revenue growth – with a 15% increase over Q1, attributable to increased trading activity as the market reawakens,” said Kelly Rodriques, CEO of Forge. “Throughout the downturn, we continued to invest in our Next Generation Platform technology while delivering additional products and capabilities to market to prepare Forge for this moment. Because of the targeted investments we’ve made, we’re in a position now to advance planned cost savings and deliver them to our bottom line. And to that end, we announced today a decisive action to reduce our expenses and to accelerate our timeline to profitability.”
Financial Statements and Key Metrics
From the income statement, Forge Global Holdings Inc (FRGE, Financial) reported total revenues of $22.3 million for Q2 FY2024, compared to $19.2 million in Q1 FY2024 and $16.7 million in Q2 FY2023. Operating expenses were $39.7 million, down from $44.2 million in the previous quarter. The company’s balance sheet showed cash and cash equivalents of $120.5 million as of June 30, 2024, compared to $130.7 million at the end of the previous quarter.
Business Highlights
Forge Global Holdings Inc (FRGE, Financial) launched its operations in Europe, providing sellers with access to an extensive pool of liquidity and buyers with the opportunity to buy shares in some of the world’s most exciting growth companies. The company also introduced the Forge Accuidity Private Market Index, which tracks the performance of late-stage, venture-backed companies.
For more detailed financial information and analysis, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Forge Global Holdings Inc for further details.
