Forge Global Holdings, Inc. Reports Second Quarter Fiscal Year 2024 Results
Forge Global Holdings (NYSE: FRGE) reported strong Q2 2024 results, with total revenue less transaction-based expenses increasing 15% quarter-over-quarter to $22.0 million. Marketplace revenues surged 35% to $11.4 million, while trading volume jumped 62% to $426.3 million. Despite these gains, the company still recorded a net loss of $14.0 million. To improve profitability, Forge announced planned expense reductions expected to save $11.3 million annually, including an 11% headcount reduction. The company also highlighted the adoption of its Private Market Index by Accuidity and its expansion into Europe. With $120.5 million in cash, Forge aims to accelerate its path to profitability while capitalizing on the reawakening private securities market.
Forge Global Holdings (NYSE: FRGE) ha riportato risultati solidi per il secondo trimestre del 2024, con un aumento del 15% rispetto al trimestre precedente delle entrate totali al netto delle spese basate sulle transazioni, arrivando a 22,0 milioni di dollari. Le entrate del marketplace sono aumentate del 35% a 11,4 milioni di dollari, mentre il volume degli scambi è balzato del 62% a 426,3 milioni di dollari. Nonostante questi guadagni, l'azienda ha comunque registrato una perdita netta di 14,0 milioni di dollari. Per migliorare la redditività, Forge ha annunciato piani di riduzione delle spese previsti per risparmiare 11,3 milioni di dollari all'anno, inclusa una riduzione dell'11% del personale. L'azienda ha anche sottolineato l'adozione del suo Indice di Mercato Privato da parte di Accuidity e la sua espansione in Europa. Con 120,5 milioni di dollari in contanti, Forge mira ad accelerare il proprio percorso verso la redditività, cercando di capitalizzare sul risveglio del mercato dei titoli privati.
Forge Global Holdings (NYSE: FRGE) reportó resultados sólidos para el segundo trimestre de 2024, con un aumento del 15% en los ingresos totales, menos los gastos basados en transacciones, alcanzando 22,0 millones de dólares. Los ingresos de la plataforma aumentaron un 35% hasta 11,4 millones de dólares, mientras que el volumen de comercio se disparó un 62% hasta 426,3 millones de dólares. A pesar de estas ganancias, la empresa aún registró una pérdida neta de 14,0 millones de dólares. Para mejorar la rentabilidad, Forge anunció reducciones de gastos planificadas que se espera ahorren 11,3 millones de dólares anuales, incluida una reducción del 11% en el personal. La compañía también destacó la adopción de su Índice de Mercado Privado por parte de Accuidity y su expansión en Europa. Con 120,5 millones de dólares en efectivo, Forge busca acelerar su camino hacia la rentabilidad, aprovechando el renacimiento del mercado de valores privados.
포지 글로벌 홀딩스 (NYSE: FRGE)는 2024년 2분기에 강력한 실적을 보고했으며, 거래 기반 비용을 제외한 총 수익이 전분기 대비 15% 증가하여 2200만 달러에 달했습니다. 마켓플레이스 수익은 35% 급증하여 1140만 달러에 도달했으며, 거래량은 62% 증가하여 4억 2630만 달러를 기록했습니다. 이러한 성장에도 불구하고 회사는 여전히 1400만 달러의 순손실을 기록했습니다. 수익성을 개선하기 위해 포지는 연간 1130만 달러를 절감할 것으로 예상되는 경비 절감 계획을 발표했습니다, 여기에는 11%의 인력 감축이 포함됩니다. 회사는 또한 Accuidity에 의한 자사의 사적 시장 지수 채택과 유럽으로의 확장을 강조했습니다. 1억 2050만 달러의 현금을 보유한 포지는 수익성으로 가는 경로를 가속화하고, 다시 깨어나는 사적 증권 시장을 활용하는 것을 목표로 하고 있습니다.
Forge Global Holdings (NYSE: FRGE) a annoncé de solides résultats pour le deuxième trimestre 2024, avec une augmentation de 15% des revenus totaux, hors frais liés aux transactions, atteignant 22,0 millions de dollars. Les revenus du marché ont bondi de 35% à 11,4 millions de dollars, tandis que le volume des transactions a grimpé de 62% à 426,3 millions de dollars. Malgré ces gains, l'entreprise a tout de même enregistré une perte nette de 14,0 millions de dollars. Pour améliorer sa rentabilité, Forge a annoncé des réductions de coûts prévues qui devraient permettre d'économiser 11,3 millions de dollars par an, y compris une réduction de 11% des effectifs. L'entreprise a également souligné l'adoption de son Indice de Marché Privé par Accuidity et son expansion en Europe. Avec 120,5 millions de dollars en liquidités, Forge vise à accélérer son parcours vers la rentabilité tout en capitalisant sur le renouveau du marché des titres privés.
Forge Global Holdings (NYSE: FRGE) hat für das zweite Quartal 2024 starke Ergebnisse vorgelegt, mit einem Anstieg der Gesamteinnahmen abzüglich transaktionsbasierter Kosten um 15% im Vergleich zum vorherigen Quartal auf 22,0 Millionen Dollar. Die Marktplatz-Einnahmen stiegen um 35% auf 11,4 Millionen Dollar, während das Handelsvolumen um 62% auf 426,3 Millionen Dollar anstieg. Trotz dieser Gewinne verzeichnete das Unternehmen weiterhin einen Nettverlust von 14,0 Millionen Dollar. Um die Rentabilität zu verbessern, kündigte Forge geplante Kostensenkungen an, die voraussichtlich jährlich 11,3 Millionen Dollar einsparen werden, einschließlich einer Reduzierung des Personals um 11%. Das Unternehmen hob außerdem die Einführung seines Privatemarkt-Index durch Accuidity und die Expansion nach Europa hervor. Mit 120,5 Millionen Dollar in bar strebt Forge an, seinen Weg zur Rentabilität zu beschleunigen, während es vom Wiederaufleben des Marktes für private Wertpapiere profitiert.
- Total revenue less transaction-based expenses increased 15% quarter-over-quarter to $22.0 million
- Marketplace revenues grew 35% quarter-over-quarter to $11.4 million
- Trading volume increased 62% quarter-over-quarter to $426.3 million
- Planned expense reductions expected to save $11.3 million annually
- Expansion into European markets with operational hubs in Berlin and London
- Forge Private Market Index adopted by Accuidity for their Megacorn strategy
- Net loss of $14.0 million in Q2 2024
- Operating loss of $17.7 million in Q2 2024
- Adjusted EBITDA loss of $7.9 million in Q2 2024
- Net Take Rate decreased from 3.2% to 2.7% quarter-over-quarter
- 11% reduction in headcount as part of expense reduction plan
Insights
Forge Global's Q2 2024 results show promising growth trends, but profitability remains a challenge. Total revenue less transaction-based expenses increased by 15% QoQ and 32% YoY to
However, Forge still reported an operating loss of
Forge's Q2 results reflect a reawakening in the private securities market. The
The launch of Forge Europe and the adoption of Forge's Private Market Index by Accuidity are strategic moves to expand market reach and influence. These initiatives could drive future growth but may require additional investment in the short term. The increase in companies with Indications of Interest (IOIs) to 551 shows a growing pipeline, which is important for sustaining marketplace activity.
Forge's investment in its Next Generation Platform technology during the market downturn appears to be paying off as trading activity increases. This strategic focus on tech infrastructure positions the company well for scalability as market conditions improve. The planned expense reductions, including an
The integration with Deutsche Börse for Forge Europe demonstrates the company's ability to leverage established financial infrastructure. However, the tech team must ensure seamless operation across multiple regions while maintaining data integrity and regulatory compliance. The success of the Forge Accuidity Private Market Index will depend on the robustness of Forge's data analytics capabilities and the accuracy of its private company valuations.
-
Total Revenue Less Transaction Based Expenses increased to
in 2Q24, up$22.0 million 15% quarter-over-quarter and32% over the year-ago quarter -
Total Marketplace Revenues, Less Transaction Based Expenses increased to
in 2Q24, up$11.4 million 35% quarter-over-quarter and103% over the year-ago quarter -
Trading Volume increased to
in 2Q24, up$426.3 million 62% quarter-over-quarter and178% over the year-ago quarter -
Net Take Rate was
2.7% in 2Q24 -
Planned Expense Reductions are expected to improve margins and savings, on an annualized basis, of an estimated
$11.3 million
“In Q2, we recorded our fifth consecutive quarter of revenue growth – with a
Financial Highlights for the Second Quarter 2024
Revenue: Total revenue less transaction-based expenses was
Operating Loss: Total operating loss was
Net Loss: Net loss was
Adjusted EBITDA: Total adjusted EBITDA was a loss of
Cash Flow from Operating Activities: Net cash used in operating activities was
Cash Flow from Investing Activities: Net cash provided from investing activities was
Cash Flow from Financing Activities: Net cash used in financing activities was
Ending Cash Balance: Cash and cash equivalents as of June 30, 2024 was
Share Count: Basic weighted-average number of shares used to compute net loss per share attributable to common stockholders for the quarter ended June 30, 2024, was 183 million shares and fully diluted outstanding share count as of June 30, 2024 was 201 million shares.
We estimate for the quarter ended September 30, 2024 that Forge will have 184 million weighted average basic shares outstanding, which will be used to calculate earnings per share in a loss position.
Fully diluted outstanding share count includes all common shares outstanding plus shares that would be issued in respect to outstanding options and warrants, net of shares to be withheld in respect to exercise price of the respective instruments. Instruments that are out of the money are excluded from the fully diluted outstanding share count.
KPIs for the Second Quarter 2024
-
Trading Volume increased from
to$262.5 million , up$426.3 million 62% quarter-over-quarter. -
Net Take Rate was
2.7% , down from3.2% prior quarter. -
Total Marketplace revenues, less transaction-based expenses, increased from
to$8.5 million , up$11.4 million 35% quarter-over-quarter. -
Total Custodial Administration Fee revenues decreased from
to$10.7 million , down$10.6 million 1% quarter-over-quarter. -
Total Custodial Accounts increased from 2.15 million to 2.21 million, up
3% quarter-over-quarter. -
Total Assets Under Custody increased from
to$16.5 billion , up$16.6 billion 1% quarter-over-quarter.
Additional Business Metrics for the Second Quarter 2024
-
Forge Trust Custodial Cash: Forge Trust Custodial Cash totaled
, up$495 million 3% quarter-over-quarter from .$481 million -
Total Number of Companies with Indications of Interest (IOIs): The total number of companies with IOIs were 551, up
1% quarter-over-quarter. -
Headcount: Forge finished out the quarter ended June 30, 2024 with a total headcount of 338. Additionally, Forge announced planned expense reductions today which include a reduction in headcount costs by roughly
11% , as well as additional expense reductions. This action is expected to improve margins and produce savings of an estimated on an annualized basis.$11.3 million
Please refer to the section titled “Use of Non-GAAP Financial Information” and the tables within this press release which contain explanations and reconciliations of the Company’s non-GAAP financial measures.
Business Highlights
-
Forge Global’s Private Market Index Now Tracked by Accuidity Strategy, Offering Diversified Exposure to Late-Stage Companies: The Forge Accuidity Private Market Index – which tracks the performance of late-stage, venture-backed companies - has been adopted by Accuidity within their Megacorn strategy (“Accuidity”). Accuidity is a
Boston -based institutional asset manager that is seeking to replicate this newly created Forge index. The Forge Accuidity Private Market Index tracks the performance of 60 venture-backed, late-stage, private growth companies including SpaceX, Anduril, Scale AI, Epic Games, Chime and others. All names are ranked according to a modified capitalization weighting methodology with an annual rebalance frequency. -
Forge Launches in Europe Amidst Growing Demand for Access to Private Company Liquidity: Connecting directly to the global interest book and leveraging Forge’s infrastructure, data services and technology solutions, Forge Europe provides 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. With operational hubs in
Berlin, Germany , integrated within the Deutsche Börse network, as well as inLondon, UK , Forge Europe has now closed its first trades in cooperation with local partners and is planning to further expand acrossEurope intoAustria ,Switzerland andFrance .
Webcast/Conference Call Details
Forge will host a webcast conference call today, August 7th, 2024, at 4:30 p.m. Eastern Time / 1:30 p.m Pacific Time to discuss these financial results and business highlights. The listen-only webcast is available at https://ir.forgeglobal.com. Investors and participants can access the conference call over the phone by dialing 1 (800) 715-9871 from
Following the conference call, an on-demand replay of the webcast will be made available on the Investor Relations page of the Company’s website at https://ir.forgeglobal.com.
Use of Non-GAAP Financial Information
In addition to our financial results determined in accordance with generally accepted accounting principles in
However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA as a tool for comparison. A reconciliation is provided below for Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review Adjusted EBITDA and the reconciliation of Adjusted EBITDA to net loss, and not to rely on any single financial measure to evaluate our business.
We define Adjusted EBITDA as net loss attributable to Forge Global Holdings, Inc., adjusted to exclude: (i) net loss attributable to noncontrolling interest, (ii) provision for income taxes, (iii) interest (income) expense, net, (iv) depreciation and amortization, (v) share-based compensation expense, (vi) change in fair value of warrant liabilities, and (vii) other significant gains, losses, and expenses such as impairments or acquisition-related transaction costs that we believe are not indicative of our ongoing results.
Forward-Looking Statements
This press release contains “forward-looking statements,” which generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “target,” “goal,” “expect,” “should,” “would,” “plan,” “predict,” “project,” “forecast,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict, indicate or relate to future events or trends or Forge’s future financial or operating performance, or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Forge’s beliefs regarding its financial position and operating performance, as well as future opportunities for Forge to expand its business. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, while considered reasonable by Forge and its management, are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. You should carefully consider the risks and uncertainties described in Forge’s documents filed, or to be filed, with the SEC, including in its Quarterly Report on Form 10-Q that will be filed on or around the date of this press release. There may be additional risks that Forge presently does not know of or that it currently believes are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect Forge’s expectations, plans or forecasts of future events and views as of the date of this press release. Forge anticipates that subsequent events and developments will cause its assessments to change. However, while Forge may elect to update these forward-looking statements at some point in the future, Forge specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Forge’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
About Forge
Forge is a leading provider of marketplace infrastructure, data services and technology solutions for private market participants. Forge Securities LLC is a registered broker-dealer and a Member of FINRA that operates an alternative trading system.
FORGE GLOBAL HOLDINGS, INC. Consolidated Balance Sheets
(In thousands of |
|||||||
|
June 30, 2024 (Unaudited) |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
120,475 |
|
|
$ |
144,722 |
|
Restricted cash |
|
1,089 |
|
|
|
1,062 |
|
Accounts receivable, net |
|
4,524 |
|
|
|
4,067 |
|
Prepaid expenses and other current assets |
|
10,930 |
|
|
|
13,253 |
|
Total current assets |
|
137,018 |
|
|
|
163,104 |
|
Internal-use software, property and equipment, net |
|
3,993 |
|
|
|
5,192 |
|
Goodwill and other intangible assets, net |
|
127,961 |
|
|
|
129,919 |
|
Operating lease right-of-use assets |
|
7,324 |
|
|
|
4,308 |
|
Payment-dependent notes receivable, noncurrent |
|
6,758 |
|
|
|
5,593 |
|
Other assets, noncurrent |
|
2,606 |
|
|
|
2,615 |
|
Total assets |
$ |
285,660 |
|
|
$ |
310,731 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,656 |
|
|
$ |
1,831 |
|
Accrued compensation and benefits |
|
9,079 |
|
|
|
11,004 |
|
Accrued expenses and other current liabilities |
|
6,818 |
|
|
|
8,861 |
|
Operating lease liabilities, current |
|
3,357 |
|
|
|
2,516 |
|
Total current liabilities |
|
20,910 |
|
|
|
24,212 |
|
Operating lease liabilities, noncurrent |
|
5,326 |
|
|
|
2,707 |
|
Payment-dependent notes payable, noncurrent |
|
6,758 |
|
|
|
5,593 |
|
Warrant liabilities |
|
2,889 |
|
|
|
9,616 |
|
Other liabilities, noncurrent |
|
303 |
|
|
|
185 |
|
Total liabilities |
|
36,186 |
|
|
|
42,313 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
19 |
|
|
|
18 |
|
Treasury stock, at cost; 157,193 shares as of June 30, 2024 and December 31, 2023, respectively |
|
(625 |
) |
|
|
(625 |
) |
Additional paid-in capital |
|
558,266 |
|
|
|
543,846 |
|
Accumulated other comprehensive income |
|
721 |
|
|
|
911 |
|
Accumulated deficit |
|
(312,986 |
) |
|
|
(280,638 |
) |
Total Forge Global Holdings, Inc. stockholders’ equity |
|
245,395 |
|
|
|
263,512 |
|
Noncontrolling interest |
|
4,079 |
|
|
|
4,906 |
|
Total stockholders’ equity |
|
249,474 |
|
|
|
268,418 |
|
Total liabilities and stockholders’ equity |
$ |
285,660 |
|
|
$ |
310,731 |
|
FORGE GLOBAL HOLDINGS, INC. Unaudited Condensed Consolidated Statements of Operations
(In thousands of |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Marketplace revenues |
$ |
11,679 |
|
|
$ |
8,520 |
|
|
$ |
5,723 |
|
|
$ |
20,199 |
|
|
$ |
10,355 |
|
Custodial administration fees |
|
10,603 |
|
|
|
10,722 |
|
|
|
10,997 |
|
|
|
21,325 |
|
|
|
21,844 |
|
Total revenues |
|
22,282 |
|
|
|
19,242 |
|
|
|
16,720 |
|
|
|
41,524 |
|
|
|
32,199 |
|
Transaction-based expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Transaction-based expenses |
|
(256 |
) |
|
|
(29 |
) |
|
|
(83 |
) |
|
|
(285 |
) |
|
|
(102 |
) |
Total revenues, less transaction-based expenses |
|
22,026 |
|
|
|
19,213 |
|
|
|
16,637 |
|
|
|
41,239 |
|
|
|
32,097 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits |
|
28,784 |
|
|
|
29,843 |
|
|
|
25,154 |
|
|
|
58,627 |
|
|
|
50,916 |
|
Technology and communications |
|
2,649 |
|
|
|
3,060 |
|
|
|
3,475 |
|
|
|
5,709 |
|
|
|
6,865 |
|
Professional services |
|
1,605 |
|
|
|
2,217 |
|
|
|
3,265 |
|
|
|
3,822 |
|
|
|
6,001 |
|
Advertising and market development |
|
1,243 |
|
|
|
1,090 |
|
|
|
876 |
|
|
|
2,333 |
|
|
|
1,553 |
|
Rent and occupancy |
|
1,107 |
|
|
|
1,135 |
|
|
|
1,148 |
|
|
|
2,242 |
|
|
|
2,474 |
|
General and administrative |
|
2,508 |
|
|
|
5,062 |
|
|
|
3,525 |
|
|
|
7,570 |
|
|
|
6,273 |
|
Depreciation and amortization |
|
1,781 |
|
|
|
1,816 |
|
|
|
1,747 |
|
|
|
3,597 |
|
|
|
3,536 |
|
Total operating expenses |
|
39,677 |
|
|
|
44,223 |
|
|
|
39,190 |
|
|
|
83,900 |
|
|
|
77,618 |
|
Operating loss |
|
(17,651 |
) |
|
|
(25,010 |
) |
|
|
(22,553 |
) |
|
|
(42,661 |
) |
|
|
(45,521 |
) |
Interest and other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
1,495 |
|
|
|
1,709 |
|
|
|
1,319 |
|
|
|
3,204 |
|
|
|
2,828 |
|
Change in fair value of warrant liabilities |
|
2,280 |
|
|
|
4,447 |
|
|
|
(3,790 |
) |
|
|
6,727 |
|
|
|
(3,622 |
) |
Other income, net |
|
94 |
|
|
|
76 |
|
|
|
217 |
|
|
|
170 |
|
|
|
432 |
|
Total interest and other income (expense) |
|
3,869 |
|
|
|
6,232 |
|
|
|
(2,254 |
) |
|
|
10,101 |
|
|
|
(362 |
) |
Loss before provision for income taxes |
|
(13,782 |
) |
|
|
(18,778 |
) |
|
|
(24,807 |
) |
|
|
(32,560 |
) |
|
|
(45,883 |
) |
Provision for income taxes |
|
258 |
|
|
|
216 |
|
|
|
293 |
|
|
|
474 |
|
|
|
478 |
|
Net loss |
|
(14,040 |
) |
|
|
(18,994 |
) |
|
|
(25,100 |
) |
|
|
(33,034 |
) |
|
|
(46,361 |
) |
Net loss attributable to noncontrolling interest |
|
(316 |
) |
|
|
(370 |
) |
|
|
(211 |
) |
|
|
(686 |
) |
|
|
(284 |
) |
Net loss attributable to Forge Global Holdings, Inc. |
$ |
(13,724 |
) |
|
$ |
(18,624 |
) |
|
$ |
(24,889 |
) |
|
$ |
(32,348 |
) |
|
$ |
(46,077 |
) |
Net loss per share attributable to Forge Global Holdings, Inc. common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.27 |
) |
Diluted |
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.27 |
) |
Weighted-average shares used in computing net loss per share attributable to Forge Global Holdings, Inc. common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
182,681,065 |
|
|
|
179,910,522 |
|
|
|
173,289,549 |
|
|
|
181,680,268 |
|
|
|
172,565,508 |
|
Diluted |
|
182,681,065 |
|
|
|
179,910,522 |
|
|
|
173,289,549 |
|
|
|
181,680,268 |
|
|
|
172,565,508 |
|
FORGE GLOBAL HOLDINGS, INC. Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Net loss |
$ |
(14,040 |
) |
|
$ |
(18,994 |
) |
|
$ |
(25,100 |
) |
|
$ |
(33,034 |
) |
|
$ |
(46,361 |
) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation |
|
7,859 |
|
|
|
9,467 |
|
|
|
8,809 |
|
|
|
17,326 |
|
|
|
16,210 |
|
Depreciation and amortization |
|
1,781 |
|
|
|
1,816 |
|
|
|
1,747 |
|
|
|
3,597 |
|
|
|
3,536 |
|
Amortization of right-of-use assets |
|
662 |
|
|
|
643 |
|
|
|
734 |
|
|
|
1,305 |
|
|
|
1,579 |
|
Loss on impairment of long lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
536 |
|
Impairment of right-of-use assets |
|
— |
|
|
|
186 |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
Allowance for doubtful accounts |
|
107 |
|
|
|
109 |
|
|
|
49 |
|
|
|
216 |
|
|
|
171 |
|
Change in fair value of warrant liabilities |
|
(2,280 |
) |
|
|
(4,447 |
) |
|
|
3,790 |
|
|
|
(6,727 |
) |
|
|
3,622 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable |
|
923 |
|
|
|
(1,596 |
) |
|
|
(1,448 |
) |
|
|
(673 |
) |
|
|
(1,313 |
) |
Prepaid expenses and other assets |
|
(5,353 |
) |
|
|
1,125 |
|
|
|
(2,227 |
) |
|
|
(4,228 |
) |
|
|
219 |
|
Accounts payable |
|
(1,004 |
) |
|
|
1,066 |
|
|
|
148 |
|
|
|
62 |
|
|
|
(1,229 |
) |
Accrued expenses and other liabilities |
|
(4,636 |
) |
|
|
2,782 |
|
|
|
1,691 |
|
|
|
(1,854 |
) |
|
|
1,288 |
|
Accrued compensation and benefits |
|
2,041 |
|
|
|
(3,967 |
) |
|
|
(783 |
) |
|
|
(1,926 |
) |
|
|
(7,514 |
) |
Operating lease liabilities |
|
(491 |
) |
|
|
(555 |
) |
|
|
(1,032 |
) |
|
|
(1,046 |
) |
|
|
(2,081 |
) |
Other |
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
Net cash used in operating activities |
|
(14,431 |
) |
|
|
(12,375 |
) |
|
|
(13,622 |
) |
|
|
(26,806 |
) |
|
|
(31,337 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of term deposits |
|
— |
|
|
|
— |
|
|
|
(2,665 |
) |
|
|
— |
|
|
|
(2,665 |
) |
Receipts of term deposit maturities |
|
6,559 |
|
|
|
— |
|
|
|
— |
|
|
|
6,559 |
|
|
|
— |
|
Purchases of property and equipment |
|
(267 |
) |
|
|
(400 |
) |
|
|
(28 |
) |
|
|
(667 |
) |
|
|
(99 |
) |
Net cash provided by (used in) investing activities |
|
6,292 |
|
|
|
(400 |
) |
|
|
(2,693 |
) |
|
|
5,892 |
|
|
|
(2,764 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from exercise of options |
|
235 |
|
|
|
226 |
|
|
|
269 |
|
|
|
461 |
|
|
|
330 |
|
Taxes withheld and paid related to net share settlement of equity awards |
|
(1,135 |
) |
|
|
(2,302 |
) |
|
|
— |
|
|
|
(3,437 |
) |
|
|
(557 |
) |
Net cash used in financing activities |
|
(900 |
) |
|
|
(2,076 |
) |
|
|
269 |
|
|
|
(2,976 |
) |
|
|
(227 |
) |
Effect of changes in currency exchange rates on cash and cash equivalents |
|
(78 |
) |
|
|
(253 |
) |
|
|
(53 |
) |
|
|
(331 |
) |
|
|
175 |
|
Net decrease in cash and cash equivalents |
|
(9,117 |
) |
|
|
(15,104 |
) |
|
|
(16,099 |
) |
|
|
(24,221 |
) |
|
|
(34,153 |
) |
Cash, cash equivalents and restricted cash, beginning of the period |
|
130,681 |
|
|
|
145,785 |
|
|
|
176,911 |
|
|
|
145,785 |
|
|
|
194,965 |
|
Cash, cash equivalents and restricted cash, end of the period |
$ |
121,564 |
|
|
$ |
130,681 |
|
|
$ |
160,812 |
|
|
$ |
121,564 |
|
|
$ |
160,812 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of cash, cash equivalents and restricted cash to the amounts reported within the consolidated balance sheets |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
120,475 |
|
|
$ |
129,606 |
|
|
$ |
159,526 |
|
|
$ |
120,475 |
|
|
$ |
159,526 |
|
Restricted cash |
|
1,089 |
|
|
|
1,075 |
|
|
|
1,286 |
|
|
|
1,089 |
|
|
|
1,286 |
|
Total cash, cash equivalents and restricted cash, end of the period |
$ |
121,564 |
|
|
$ |
130,681 |
|
|
$ |
160,812 |
|
|
$ |
121,564 |
|
|
$ |
160,812 |
|
FORGE GLOBAL HOLDINGS, INC. Reconciliation of GAAP to Non-GAAP Results
(In thousands of |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, 2024 |
|
March 31, 2023 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||
Net loss attributable to Forge Global Holdings, Inc. |
$ |
(13,724 |
) |
|
$ |
(18,624 |
) |
|
$ |
(24,889 |
) |
|
$ |
(32,348 |
) |
|
$ |
(46,077 |
) |
Add: |
|
|
|
|
|
|
|
|
|
||||||||||
Net loss attributable to noncontrolling interest |
|
(316 |
) |
|
|
(370 |
) |
|
|
(211 |
) |
|
|
(686 |
) |
|
|
(284 |
) |
Provision for income taxes |
|
258 |
|
|
|
216 |
|
|
|
293 |
|
|
|
474 |
|
|
|
478 |
|
Interest (income) expense, net |
|
(1,495 |
) |
|
|
(1,709 |
) |
|
|
(1,319 |
) |
|
|
(3,204 |
) |
|
|
(2,828 |
) |
Depreciation and amortization |
|
1,781 |
|
|
|
1,816 |
|
|
|
1,747 |
|
|
|
3,597 |
|
|
|
3,536 |
|
Share-based compensation expense |
|
7,859 |
|
|
|
9,467 |
|
|
|
8,809 |
|
|
|
17,326 |
|
|
|
16,210 |
|
Change in fair value of warrant liabilities |
|
(2,280 |
) |
|
|
(4,447 |
) |
|
|
3,790 |
|
|
|
(6,727 |
) |
|
|
3,622 |
|
Impairment of right-of-use assets |
|
— |
|
|
|
186 |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
Loss on impairment of long lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
536 |
|
Adjusted EBITDA |
$ |
(7,917 |
) |
|
$ |
(13,465 |
) |
|
$ |
(11,780 |
) |
|
$ |
(21,382 |
) |
|
$ |
(24,807 |
) |
FORGE GLOBAL HOLDINGS, INC. SUPPLEMENTAL FINANCIAL INFORMATION KEY OPERATING METRICS
(In thousands of |
|||||||||||||||
Key Business Metrics |
|||||||||||||||
We monitor the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. The tables below reflect period-over-period changes in our key business metrics, along with the percentage change between such periods. We believe the following business metrics are useful in evaluating our business: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
Dollars in thousands |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||
TRADING SOLUTIONS |
|
|
|
|
|
|
|
|
|
||||||
Trades |
|
831 |
|
|
605 |
|
|
448 |
|
|
1,436 |
|
|
754 |
|
Volume |
$ |
426,318 |
|
|
262,538 |
|
|
153,182 |
|
|
688,856 |
|
|
281,345 |
|
Net Take Rate |
|
2.7 |
% |
|
3.2 |
% |
|
3.7 |
% |
|
2.9 |
% |
|
3.6 |
% |
Marketplace revenues, less transaction-based expenses |
$ |
11,423 |
|
|
8,491 |
|
|
5,640 |
|
|
19,914 |
|
|
10,253 |
|
|
|
As of |
||||||||||
Dollars in thousands |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
CUSTODY SOLUTIONS |
|
|
|
|
|
||||||
Total Custodial Accounts |
|
2,211,108 |
|
|
2,152,777 |
|
|
1,970,617 |
|||
Assets Under Custody |
$ |
16,600,408 |
|
|
$ |
16,454,323 |
|
|
$ |
15,299,816 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807409110/en/
Investor Relations Contact:
Dominic Paschel
ir@forgeglobal.com
Media Contact:
Lindsay Riddell
press@forgeglobal.com
Source: Forge Global
FAQ
What was Forge Global's (FRGE) trading volume in Q2 2024?
How much did Forge Global (FRGE) expect to save from its expense reduction plan?
What was Forge Global's (FRGE) net loss in Q2 2024?
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