Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The average amount raised in an offering on the Netcapital Funding Portal increased significantly from $128,000 to $280,000 year over year.
- The total number of successful offerings on the platform increased from 50 to 53.
- Revenue from portal fees more than doubled, increasing by 109% year over year.
- Significant deals were closed by issuers, including Avadain and EarthGrid PBC, totaling almost $8 million.
- Netcapital introduced a 1% fee on equity raised by issuers, earning equity securities from 30 clients.
Negative Points
- Revenues for fiscal 2024 decreased by 42% to $4,951,435 compared to the previous year.
- Consulting services for equity securities saw a significant drop, decreasing by 52% to $3.44 million.
- An unrealized loss of approximately $2.7 million was recognized in the value of equity securities.
- An impairment loss of $1,048,430 was recorded due to the devaluation of intangible assets.
- The company reported an operating loss of $3,442,388 for fiscal 2024, compared to an operating income in the previous year.
Q & A Highlights
Q: Hi. Good morning. Just a question on portal fees and the growth there. What initiatives are you doing to maintain and/or increase that growth?
A: Martin Kay, President, Chief Executive Officer, Director: We are focusing on increasing the number of issuers on our platform and ensuring their success. This involves innovating our connections with new companies and leveraging digital marketing to engage communities. We are also targeting larger issuers as we move into the Reg A+ business.
Q: You mentioned the ATS platform, do you have any timeline as far as the progression there?
A: Martin Kay, President, Chief Executive Officer, Director: We have launched the platform in a production environment to a closed group of users and expect to open it to a broader group before the end of this year. We are proceeding carefully to ensure a high-quality user experience.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
