Forge Global Holdings, Inc. Reports Third Quarter Fiscal Year 2024 Results
Forge Global Holdings reported Q3 2024 financial results with total revenue of $19.1 million, up 4% year-over-year. Trading volume reached $338.1 million, increasing 44% from the year-ago quarter. The company reported a net loss of $18.8 million and an Adjusted EBITDA loss of $11.4 million. Marketplace revenues grew 21% year-over-year to $8.6 million. Notable developments include the launch of Forge Price, providing daily pricing for approximately 250 pre-IPO companies, and the introduction of the Private Magnificent 7 initiative. The company maintained $114.5 million in cash and cash equivalents as of September 30, 2024.
Forge Global Holdings ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi totali di 19,1 milioni di dollari, in aumento del 4% rispetto all'anno precedente. Il volume di scambi ha raggiunto i 338,1 milioni di dollari, con un incremento del 44% rispetto allo stesso trimestre dell'anno scorso. L'azienda ha riportato una perdita netta di 18,8 milioni di dollari e una perdita di EBITDA rettificato di 11,4 milioni di dollari. I ricavi del marketplace sono cresciuti del 21% anno su anno, raggiungendo gli 8,6 milioni di dollari. Sviluppi significativi includono il lancio di Forge Price, che fornisce prezzi giornalieri per circa 250 aziende pre-IPO, e l'introduzione dell'iniziativa Private Magnificent 7. L'azienda ha mantenuto 114,5 milioni di dollari in contanti e equivalenti di cassa al 30 settembre 2024.
Forge Global Holdings informó los resultados financieros del tercer trimestre de 2024, con ingresos totales de 19,1 millones de dólares, un aumento del 4% interanual. El volumen de operaciones alcanzó los 338,1 millones de dólares, aumentando un 44% en comparación con el trimestre del año anterior. La compañía reportó una pérdida neta de 18,8 millones de dólares y una pérdida de EBITDA ajustado de 11,4 millones de dólares. Los ingresos del marketplace crecieron un 21% con respecto al año anterior, alcanzando los 8,6 millones de dólares. Los desarrollos notables incluyen el lanzamiento de Forge Price, que proporciona precios diarios para aproximadamente 250 empresas pre-ICO, y la introducción de la iniciativa Private Magnificent 7. La compañía mantenía 114,5 millones de dólares en efectivo y equivalentes de efectivo al 30 de septiembre de 2024.
Forge Global Holdings는 2024년 3분기 재무 결과를 보고했으며, 총 수익은 1,910만 달러로 전년 대비 4% 증가했습니다. 거래량은 3억 3,810만 달러에 도달하며, 작년 같은 분기 대비 44% 증가했습니다. 회사는 1,880만 달러의 순손실과 1,140만 달러의 조정 EBITDA 손실을 보고했습니다. 마켓플레이스 수익은 전년 대비 21% 성장하여 860만 달러에 도달했습니다. 주목할 만한 발전으로는 약 250개의 상장 전 기업에 대한 일일 가격을 제공하는 Forge Price의 출시와 Private Magnificent 7 이니셔티브의 도입이 있습니다. 회사는 2024년 9월 30일 기준으로 1억 1,450만 달러의 현금 및 현금성 자산을 보유하고 있습니다.
Forge Global Holdings a rapporté les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires total de 19,1 millions de dollars, en hausse de 4 % par rapport à l'année précédente. Le volume des échanges a atteint 338,1 millions de dollars, avec une augmentation de 44 % par rapport au trimestre de l'année dernière. L'entreprise a enregistré une perte nette de 18,8 millions de dollars et une perte d'EBITDA ajusté de 11,4 millions de dollars. Les revenus du marché ont augmenté de 21 % par rapport à l'année précédente pour atteindre 8,6 millions de dollars. Parmi les développements notables figurent le lancement de Forge Price, qui fournit des prix quotidiens pour environ 250 entreprises pre-IPO, et l'introduction de l'initiative Private Magnificent 7. L'entreprise a maintenu 114,5 millions de dollars en liquidités et équivalents de liquidités au 30 septembre 2024.
Forge Global Holdings berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, mit einem Gesamtumsatz von 19,1 Millionen Dollar, was einem Anstieg von 4 % im Jahresvergleich entspricht. Das Handelsvolumen erreichte 338,1 Millionen Dollar und stieg um 44 % im Vergleich zum Vorjahresquartal. Das Unternehmen meldete einen Nettoverlust von 18,8 Millionen Dollar und einen Verlust von 11,4 Millionen Dollar bei bereinigtem EBITDA. Die Marktplatzumsätze stiegen im Jahresvergleich um 21 % auf 8,6 Millionen Dollar. Bedeutende Entwicklungen umfassen die Einführung von Forge Price, das tägliche Preise für etwa 250 Pre-IPO-Unternehmen bereitstellt, sowie die Einführung der Private Magnificent 7-Initiative. Das Unternehmen hielt am 30. September 2024 114,5 Millionen Dollar in Cash und liquiden Mitteln.
- Trading volume increased 44% YoY to $338.1 million
- Total revenue grew 4% YoY to $19.1 million
- Marketplace revenues increased 21% YoY to $8.6 million
- Total Custodial Accounts grew to 2.28 million from 2.02 million YoY
- Assets Under Custody increased to $16.6 billion from $15.1 billion YoY
- Net loss of $18.8 million, compared to $14.0 million in previous quarter
- Adjusted EBITDA loss widened to $11.4 million from $10.4 million YoY
- Operating loss of $20.9 million
- Net Take Rate declined to 2.6% from 3.0% YoY
- Custodial Administration Fee revenues decreased to $10.5 million from $11.3 million YoY
Insights
The Q3 results show mixed signals for Forge Global. While trading volume increased significantly by
Notable metrics include declining net take rates from
The private securities marketplace shows resilience despite challenging market conditions. The increase in trading volume and custodial accounts (up to 2.28 million from 2.02 million YoY) indicates growing market adoption. The introduction of Forge Price for 250 pre-IPO companies represents a strategic move toward market transparency, potentially attracting more participants to the platform.
However, the decline in companies with Indications of Interest (IOIs) from 551 to 516 quarter-over-quarter suggests some cooling in market activity. The stable Assets Under Custody at
-
Total Revenue, Less Transaction-Based Expenses of
in 3Q24, up$19.1 million 4% over the year-ago quarter -
Total Marketplace Revenues, Less Transaction-Based Expenses of
in 3Q24, up$8.6 million 21% over the year-ago quarter -
Trading Volume of
in 3Q24, up$338.1 million 44% over the year-ago quarter - Forge announces Forge Price and the Private Magnificent 7
“In Q3, we remained focused on technology and product innovations that expand access and improve the experience for all participants in the private market,” said Kelly Rodriques, CEO of Forge. “Our continued investment in the Forge Next Generation Platform allows us to better expose pricing information, improve the client experience, and drive further efficiency into the trading process. And our launch of Forge Price is a breakthrough in pricing transparency, revolutionizing how investors access and interpret private market valuations, benchmarking, and indexing.”
Financial Highlights for the Third Quarter 2024
Revenue: Total revenue, less transaction-based expenses was
Operating Loss: Total operating loss was
Net Loss: Net loss was
Adjusted EBITDA Loss: Total adjusted EBITDA loss was
Cash Flow from Operating Activities: Net cash used in operating activities was
Cash Flow from Investing Activities: Net cash used in investing activities was
Cash Flow from Financing Activities: Net cash used in financing activities was
Ending Cash Balance: Cash and cash equivalents as of September 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 September 30, 2024, was 184 million shares and fully diluted outstanding share count as of September 30, 2024 was 201 million shares.
We estimate for the quarter ended December 31, 2024 that Forge will have 186 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 restricted stock units, 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 Third Quarter 2024
-
Trading Volume was
, compared to$338.1 million last quarter, and$426.3 million in the year-ago quarter.$234.1 million -
Net Take Rate was
2.6% , compared to2.7% last quarter, and3.0% in the year-ago quarter. -
Total Marketplace revenues, less transaction-based expenses was
, compared to$8.6 million last quarter, and$11.4 million in the year-ago quarter.$7.1 million -
Total Custodial Administration Fee revenues was
, compared to$10.5 million last quarter, and$10.6 million in the year-ago quarter.$11.3 million - Total Custodial Accounts was 2.28 million, compared to 2.21 million last quarter, and 2.02 million in the year-ago quarter.
-
Total Assets Under Custody was
, compared to$16.6 billion last quarter, and$16.6 billion in the year-ago quarter.$15.1 billion
Additional Business Metrics for the Third Quarter 2024
-
Forge Trust Custodial Cash: Forge Trust Custodial Cash was
, compared to$470.0 million last quarter, and$495.0 million in the year-ago quarter.$518.0 million - Total Number of Companies with Indications of Interest (IOIs): The total number of companies with IOIs was 516, compared to 551 last quarter, and 502 in the year-ago quarter.
- Employee Headcount: Forge finished out the quarter with a total employee headcount of 307.
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 Price: Forge announced in September the launch of Forge Price, a derived, indicative price calculated daily for approximately 250 pre-IPO venture-backed late-stage companies. The innovative pricing model provides a derived price per share for each company by synthesizing data from various sources, including secondary market transactions, recent funding rounds, and indications of interest on Forge.
- Forge Names the Private Magnificent 7: In September, Forge announced the Private Market Magnificent 7, which represent a group of private, venture-backed, late-stage companies that have demonstrated resilience and propped up the performance of the private market over the recent market cycle, much like their public market counterparts.
Forge will host a webcast conference call today, November 6th, 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 Statement
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 |
|||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
114,454 |
|
|
$ |
144,722 |
|
Restricted cash |
|
1,103 |
|
|
|
1,062 |
|
Accounts receivable, net |
|
4,955 |
|
|
|
4,067 |
|
Prepaid expenses and other current assets |
|
8,891 |
|
|
|
13,253 |
|
Total current assets |
|
129,403 |
|
|
|
163,104 |
|
Internal-use software, property and equipment, net |
|
3,500 |
|
|
|
5,192 |
|
Goodwill and other intangible assets, net |
|
126,983 |
|
|
|
129,919 |
|
Operating lease right-of-use assets |
|
6,654 |
|
|
|
4,308 |
|
Payment-dependent notes receivable, noncurrent |
|
7,436 |
|
|
|
5,593 |
|
Other assets, noncurrent |
|
2,597 |
|
|
|
2,615 |
|
Total assets |
$ |
276,573 |
|
|
$ |
310,731 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,640 |
|
|
$ |
1,831 |
|
Accrued compensation and benefits |
|
11,306 |
|
|
|
11,004 |
|
Accrued expenses and other current liabilities |
|
7,694 |
|
|
|
8,861 |
|
Operating lease liabilities, current |
|
3,453 |
|
|
|
2,516 |
|
Total current liabilities |
|
24,093 |
|
|
|
24,212 |
|
Operating lease liabilities, noncurrent |
|
4,492 |
|
|
|
2,707 |
|
Payment-dependent notes payable, noncurrent |
|
7,436 |
|
|
|
5,593 |
|
Warrant liabilities |
|
1,958 |
|
|
|
9,616 |
|
Other liabilities, noncurrent |
|
313 |
|
|
|
185 |
|
Total liabilities |
|
38,292 |
|
|
|
42,313 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
19 |
|
|
|
18 |
|
Treasury stock, at cost; 157,193 shares as of September 30, 2024 and December 31, 2023, respectively |
|
(625 |
) |
|
|
(625 |
) |
Additional paid-in capital |
|
565,529 |
|
|
|
543,846 |
|
Accumulated other comprehensive income |
|
933 |
|
|
|
911 |
|
Accumulated deficit |
|
(331,328 |
) |
|
|
(280,638 |
) |
Total Forge Global Holdings, Inc. stockholders’ equity |
|
234,528 |
|
|
|
263,512 |
|
Noncontrolling interest |
|
3,753 |
|
|
|
4,906 |
|
Total stockholders’ equity |
|
238,281 |
|
|
|
268,418 |
|
Total liabilities and stockholders’ equity |
$ |
276,573 |
|
|
$ |
310,731 |
|
FORGE GLOBAL HOLDINGS, INC. Unaudited Condensed Consolidated Statements of Operations
(In thousands of |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Marketplace revenues |
$ |
8,713 |
|
|
$ |
11,679 |
|
|
$ |
7,283 |
|
|
$ |
28,912 |
|
|
$ |
17,638 |
|
Custodial administration fees |
|
10,503 |
|
|
|
10,603 |
|
|
|
11,280 |
|
|
|
31,828 |
|
|
|
33,124 |
|
Total revenues |
|
19,216 |
|
|
|
22,282 |
|
|
|
18,563 |
|
|
|
60,740 |
|
|
|
50,762 |
|
Transaction-based expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Transaction-based expenses |
|
(73 |
) |
|
|
(256 |
) |
|
|
(148 |
) |
|
|
(358 |
) |
|
|
(250 |
) |
Total revenues, less transaction-based expenses |
|
19,143 |
|
|
|
22,026 |
|
|
|
18,415 |
|
|
|
60,382 |
|
|
|
50,512 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits |
|
28,750 |
|
|
|
28,784 |
|
|
|
27,650 |
|
|
|
87,377 |
|
|
|
78,566 |
|
Technology and communications |
|
3,185 |
|
|
|
2,649 |
|
|
|
3,763 |
|
|
|
8,894 |
|
|
|
10,628 |
|
Professional services |
|
2,435 |
|
|
|
1,605 |
|
|
|
2,883 |
|
|
|
6,257 |
|
|
|
8,884 |
|
Advertising and market development |
|
1,015 |
|
|
|
1,243 |
|
|
|
910 |
|
|
|
3,348 |
|
|
|
2,463 |
|
Rent and occupancy |
|
1,036 |
|
|
|
1,107 |
|
|
|
1,142 |
|
|
|
3,278 |
|
|
|
3,616 |
|
General and administrative |
|
1,877 |
|
|
|
2,508 |
|
|
|
1,870 |
|
|
|
9,447 |
|
|
|
8,143 |
|
Depreciation and amortization |
|
1,748 |
|
|
|
1,781 |
|
|
|
1,710 |
|
|
|
5,345 |
|
|
|
5,246 |
|
Total operating expenses |
|
40,046 |
|
|
|
39,677 |
|
|
|
39,928 |
|
|
|
123,946 |
|
|
|
117,546 |
|
Operating loss |
|
(20,903 |
) |
|
|
(17,651 |
) |
|
|
(21,513 |
) |
|
|
(63,564 |
) |
|
|
(67,034 |
) |
Interest and other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
1,307 |
|
|
|
1,495 |
|
|
|
1,725 |
|
|
|
4,511 |
|
|
|
4,553 |
|
Change in fair value of warrant liabilities |
|
931 |
|
|
|
2,280 |
|
|
|
907 |
|
|
|
7,659 |
|
|
|
(2,715 |
) |
Other income, net |
|
119 |
|
|
|
94 |
|
|
|
215 |
|
|
|
288 |
|
|
|
647 |
|
Total interest and other income |
|
2,357 |
|
|
|
3,869 |
|
|
|
2,847 |
|
|
|
12,458 |
|
|
|
2,485 |
|
Loss before provision for income taxes |
|
(18,546 |
) |
|
|
(13,782 |
) |
|
|
(18,666 |
) |
|
|
(51,106 |
) |
|
|
(64,549 |
) |
Provision for income taxes |
|
298 |
|
|
|
258 |
|
|
|
291 |
|
|
|
772 |
|
|
|
769 |
|
Net loss |
|
(18,844 |
) |
|
|
(14,040 |
) |
|
|
(18,957 |
) |
|
|
(51,878 |
) |
|
|
(65,318 |
) |
Net loss attributable to noncontrolling interest |
|
(502 |
) |
|
|
(316 |
) |
|
|
(609 |
) |
|
|
(1,188 |
) |
|
|
(893 |
) |
Net loss attributable to Forge Global Holdings, Inc. |
$ |
(18,342 |
) |
|
$ |
(13,724 |
) |
|
$ |
(18,348 |
) |
|
$ |
(50,690 |
) |
|
$ |
(64,425 |
) |
Net loss per share attributable to Forge Global Holdings, Inc. common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.37 |
) |
Diluted |
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.37 |
) |
Weighted-average shares used in computing net loss per share attributable to Forge Global Holdings, Inc. common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
184,158,571 |
|
|
|
182,681,065 |
|
|
|
173,957,880 |
|
|
|
182,261,198 |
|
|
|
173,045,721 |
|
Diluted |
|
184,158,571 |
|
|
|
182,681,065 |
|
|
|
173,957,880 |
|
|
|
182,261,198 |
|
|
|
173,045,721 |
|
FORGE GLOBAL HOLDINGS, INC. Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Net loss |
$ |
(18,844 |
) |
|
$ |
(14,040 |
) |
|
$ |
(18,957 |
) |
|
$ |
(51,878 |
) |
|
$ |
(65,318 |
) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation |
|
7,622 |
|
|
|
7,859 |
|
|
|
9,233 |
|
|
|
24,948 |
|
|
|
25,443 |
|
Depreciation and amortization |
|
1,748 |
|
|
|
1,781 |
|
|
|
1,711 |
|
|
|
5,345 |
|
|
|
5,247 |
|
Amortization of right-of-use assets |
|
670 |
|
|
|
662 |
|
|
|
748 |
|
|
|
1,975 |
|
|
|
2,327 |
|
Loss on impairment of long lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
536 |
|
Impairment of right-of-use assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
Allowance for doubtful accounts |
|
34 |
|
|
|
107 |
|
|
|
358 |
|
|
|
250 |
|
|
|
529 |
|
Change in fair value of warrant liabilities |
|
(932 |
) |
|
|
(2,280 |
) |
|
|
(907 |
) |
|
|
(7,659 |
) |
|
|
2,715 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable |
|
(466 |
) |
|
|
923 |
|
|
|
456 |
|
|
|
(1,139 |
) |
|
|
(857 |
) |
Prepaid expenses and other assets |
|
2,049 |
|
|
|
(5,353 |
) |
|
|
1,371 |
|
|
|
(2,179 |
) |
|
|
1,590 |
|
Accounts payable |
|
(120 |
) |
|
|
(1,004 |
) |
|
|
(89 |
) |
|
|
(58 |
) |
|
|
(1,318 |
) |
Accrued expenses and other liabilities |
|
922 |
|
|
|
(4,636 |
) |
|
|
723 |
|
|
|
(931 |
) |
|
|
2,011 |
|
Accrued compensation and benefits |
|
2,228 |
|
|
|
2,041 |
|
|
|
3,042 |
|
|
|
302 |
|
|
|
(4,472 |
) |
Operating lease liabilities |
|
(739 |
) |
|
|
(491 |
) |
|
|
(1,236 |
) |
|
|
(1,785 |
) |
|
|
(3,317 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
Net cash used in operating activities |
|
(5,828 |
) |
|
|
(14,431 |
) |
|
|
(3,547 |
) |
|
|
(32,633 |
) |
|
|
(34,884 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of term deposits |
|
— |
|
|
|
— |
|
|
|
(515 |
) |
|
|
— |
|
|
|
(3,180 |
) |
Receipts of term deposit maturities |
|
— |
|
|
|
6,559 |
|
|
|
— |
|
|
|
6,559 |
|
|
|
— |
|
Capitalized internal-use software development costs |
|
(48 |
) |
|
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
Purchases of property and equipment |
|
(125 |
) |
|
|
(267 |
) |
|
|
(14 |
) |
|
|
(792 |
) |
|
|
(113 |
) |
Net cash (used in) provided by investing activities |
|
(173 |
) |
|
|
6,292 |
|
|
|
(529 |
) |
|
|
5,719 |
|
|
|
(3,293 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from exercise of options |
|
12 |
|
|
|
235 |
|
|
|
23 |
|
|
|
473 |
|
|
|
353 |
|
Taxes withheld and paid related to net share settlement of equity awards |
|
(406 |
) |
|
|
(1,135 |
) |
|
|
— |
|
|
|
(3,843 |
) |
|
|
(557 |
) |
Net cash (used in) provided by financing activities |
|
(394 |
) |
|
|
(900 |
) |
|
|
23 |
|
|
|
(3,370 |
) |
|
|
(204 |
) |
Effect of changes in currency exchange rates on cash and cash equivalents |
|
388 |
|
|
|
(78 |
) |
|
|
(333 |
) |
|
|
57 |
|
|
|
(158 |
) |
Net decrease in cash and cash equivalents |
|
(6,007 |
) |
|
|
(9,117 |
) |
|
|
(4,386 |
) |
|
|
(30,227 |
) |
|
|
(38,539 |
) |
Cash, cash equivalents and restricted cash, beginning of the period |
|
121,564 |
|
|
|
130,681 |
|
|
|
160,812 |
|
|
|
145,784 |
|
|
|
194,965 |
|
Cash, cash equivalents and restricted cash, end of the period |
$ |
115,557 |
|
|
$ |
121,564 |
|
|
$ |
156,426 |
|
|
$ |
115,557 |
|
|
$ |
156,426 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of cash, cash equivalents and restricted cash to the amounts reported within the consolidated balance sheets |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
114,454 |
|
|
$ |
120,475 |
|
|
$ |
155,127 |
|
|
$ |
114,454 |
|
|
$ |
155,127 |
|
Restricted cash |
|
1,103 |
|
|
|
1,089 |
|
|
|
1,299 |
|
|
|
1,103 |
|
|
|
1,299 |
|
Total cash, cash equivalents and restricted cash, end of the period |
$ |
115,557 |
|
|
$ |
121,564 |
|
|
$ |
156,426 |
|
|
$ |
115,557 |
|
|
$ |
156,426 |
|
FORGE GLOBAL HOLDINGS, INC. Reconciliation of GAAP to Non-GAAP Results
(In thousands of |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Net loss attributable to Forge Global Holdings, Inc. |
$ |
(18,342 |
) |
|
$ |
(13,724 |
) |
|
$ |
(18,348 |
) |
|
$ |
(50,690 |
) |
|
$ |
(64,425 |
) |
Add: |
|
|
|
|
|
|
|
|
|
||||||||||
Net loss attributable to noncontrolling interest |
|
(502 |
) |
|
|
(316 |
) |
|
|
(609 |
) |
|
|
(1,188 |
) |
|
|
(893 |
) |
Provision for income taxes |
|
298 |
|
|
|
258 |
|
|
|
291 |
|
|
|
772 |
|
|
|
769 |
|
Interest (income) expense, net |
|
(1,307 |
) |
|
|
(1,495 |
) |
|
|
(1,725 |
) |
|
|
(4,511 |
) |
|
|
(4,553 |
) |
Depreciation and amortization |
|
1,748 |
|
|
|
1,781 |
|
|
|
1,710 |
|
|
|
5,345 |
|
|
|
5,246 |
|
Share-based compensation expense |
|
7,622 |
|
|
|
7,859 |
|
|
|
9,233 |
|
|
|
24,948 |
|
|
|
25,443 |
|
Change in fair value of warrant liabilities |
|
(931 |
) |
|
|
(2,280 |
) |
|
|
(907 |
) |
|
|
(7,659 |
) |
|
|
2,715 |
|
Impairment of right-of-use assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
Loss on impairment of long lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
536 |
|
Adjusted EBITDA |
$ |
(11,414 |
) |
|
$ |
(7,917 |
) |
|
$ |
(10,355 |
) |
|
$ |
(32,797 |
) |
|
$ |
(35,162 |
) |
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 |
|
Nine Months Ended |
||||||||||||||||
Dollars in thousands |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
TRADING SOLUTIONS |
|
|
|
|
|
|
|
|
|
||||||||||
Trades |
|
680 |
|
|
|
831 |
|
|
|
567 |
|
|
|
2,116 |
|
|
|
1,321 |
|
Volume |
$ |
338,075 |
|
|
$ |
426,318 |
|
|
$ |
234,141 |
|
|
$ |
1,026,931 |
|
|
$ |
515,486 |
|
Net Take Rate |
|
2.6 |
% |
|
|
2.7 |
% |
|
|
3.0 |
% |
|
|
2.8 |
% |
|
|
3.4 |
% |
Marketplace revenues, less transaction-based expenses |
$ |
8,640 |
|
|
$ |
11,423 |
|
|
$ |
7,135 |
|
|
$ |
28,554 |
|
|
$ |
17,388 |
|
- Trades are defined as the total number of orders executed by us and entities we have acquired on behalf of private investors and stockholders. Increasing the number of orders is critical to increasing our revenue and, in turn, to achieving profitability.
-
Volume is defined as the total sales value for all securities traded through our Forge Markets platform which is the aggregate value of the issuer company’s equity attributed to both the buyer and seller in a trade and as such a
trade of equity between buyer and seller would be captured as$100 volume for us. Although we typically capture a commission on each side of a trade, we may not in certain cases due to factors such as the use of a third-party broker by one of the parties or supply factors that would not allow us to attract sellers of shares of certain issuers. Volume is influenced by, among other things, the pricing and quality of our services as well as market conditions that affect private company valuations, such as increases in valuations of comparable companies at IPO.$200 - Net Take Rates are defined as our marketplace revenues, less transaction-based expenses, divided by Volume. These represent the percentage of fees earned by our marketplace on any transactions executed from the commission we charged on such transactions (less transaction-based expenses), which is a determining factor in our revenue. The Net Take Rate can vary based upon the service or product offering and is also affected by the average order size and transaction frequency.
|
As of |
|||||||
Dollars in thousands |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|||
CUSTODY SOLUTIONS |
|
|
|
|
|
|||
Total Custodial Accounts |
|
2,281,976 |
|
|
2,211,108 |
|
|
2,023,756 |
Assets Under Custody |
$ |
16,620,450 |
|
$ |
16,600,408 |
|
$ |
15,148,480 |
- Total Custodial Accounts are defined as our customers’ custodial accounts that are established on our platform and billable. These relate to our Custodial Administration fees revenue stream and are an important measure of our business as the number of Total Custodial Accounts is an indicator of our future revenues from certain account maintenance, transaction and cash administration fees.
- Assets Under Custody is the reported value of all client holdings held under our agreements, including cash submitted to us by the responsible party. These assets can be held at various financial institutions, issuers and in our vault. As the custodian of the accounts, we collect all interest and dividends, handle all fees and transactions, and any other considerations for the assets concerned. Our fees are earned from the overall maintenance activities of all assets and are not charged on the basis of the dollar value of Assets Under Custody, but we believe that Assets Under Custody is a useful metric for assessing the relative size and scope of our business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106401663/en/
Investor Relations Contact:
Dominic Paschel
ir@forgeglobal.com
Media Contact:
Lindsay Riddell
press@forgeglobal.com
Source: Forge Global
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