Q3 2024 Forge Global Holdings Inc Earnings Call Transcript
Key Points
- Forge Global Holdings Inc (FRGE) recorded its fifth consecutive quarter of revenue growth, with a 15% increase over the last quarter and a 32% rise compared to the year-ago quarter.
- Marketplace revenue surged by 103% compared to the year-ago quarter, indicating strong recovery and growth in the private market.
- The company has made significant investments in next-generation technology platforms, enhancing operational efficiency and positioning itself for market reawakening.
- Forge Global Holdings Inc (FRGE) is seeing increased institutional interest, with a notable shift in the ratio of buy-side to sell-side interest.
- The company has announced cost reduction measures, including an 11% reduction in headcount costs, expected to save $11.3 million annually, accelerating its timeline to profitability by 2026.
- Despite revenue growth, Forge Global Holdings Inc (FRGE) reported a net loss of $14 million for the quarter, although this was an improvement from the previous quarter.
- The net take rate decreased from 3.2% to 2.7%, influenced by large block trades that drove higher volume at lower take rates.
- Custodial cash balances and assets under custody remained essentially flat, indicating limited growth in these areas.
- The company anticipates a slowdown in transaction volume during the third quarter due to seasonal factors like summer vacations and holidays.
- Forge Global Holdings Inc (FRGE) is still projecting to achieve breakeven adjusted EBITDA only by 2026, indicating a longer path to profitability.
Good afternoon. My name is Angela and I will be your conference operator today. At this time, I'd like to welcome everyone to the Forge second-quarter 2024 financial results conference call.
On today's Forge Global's call will be Kelly Rodrigues, CEO; Mark Lee, CFO; Lindsay Riddell, Executive Vice President of Corporate Marketing and Communication; and Dominic Paschel, SVP of Finance and Investor Relations. (Operator Instructions)
And now I will now turn the call over to Lindsay Riddell. Ms. Riddell, you may begin your conference.
Thank you operator and thank you all for joining us today for Forge's second quarter, 2024 earnings call. Joining me today are for CEO Kelly Rodriguez and Ford CFO, Mark lee. They will share prepared remarks regarding the quarter's results and then take your questions at the end just after market closed. Today, we issued a press release announcing for second quarter, 2024 financial results. A discussion of
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