We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Forge Global Holdings Inc | NYSE:FRGE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.08 | -5.00% | 1.52 | 1.61 | 1.52 | 1.61 | 2,329,219 | 01:00:00 |
Forge Global Holdings, Inc. (“Forge,” or the “Company”) (NYSE: FRGE), a leading provider of marketplace infrastructure, data services and technology solutions for private market participants, today announced its financial results for the third quarter ended September 30, 2023.
“In the third quarter, investors demonstrated a continued cautious return to the private market — which drove higher volumes and revenue in our markets business compared to both Q1 and Q2,” said Kelly Rodriques, CEO of Forge. “This improvement was observed for the third quarter even as continued concern over Fed actions and interest rates, as well as existing geopolitical conflicts served as a backdrop heading into the fourth quarter.”
Financial Highlights for the Third Quarter 2023
Forge believes that quarter-over-quarter comparisons are more indicative of the current state of the business. For year-ago-quarter comparisons, please reference the unaudited condensed consolidated financial statements in the Quarterly Report on Form 10-Q that will be filed on or around the date of this press release.
Revenue: Total revenue less transaction-based expenses was $18.4 million compared to $16.6 million in the quarter ended June 30, 2023.
Operating Loss: Total operating loss was $21.5 million compared to total operating loss of $22.6 million in the quarter ended June 30, 2023.
Net Loss: Net loss was $19.0 million compared to net loss of $25.1 million in the quarter ended June 30, 2023.
Adjusted EBITDA: Total adjusted EBITDA was a loss of $10.4 million compared to total adjusted EBITDA loss of $11.8 million in the quarter ended June 30, 2023.
Cash Flow from Operating Activities: Net cash used in operating activities was $3.5 million compared to $13.6 million in the quarter ended June 30, 2023.
Cash Flow from Investing Activities: Net cash used in investing activities was $0.5 million compared to net cash used in investing activities of $2.7 million in the quarter ended June 30, 2023.
Ending Cash Balance: Cash and cash equivalents as of September 30, 2023 was $155.1 million.
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, 2023, was 174 million shares and fully diluted outstanding share count as of September 30, 2023 was 198 million shares.
We estimate for the quarter ended December 31, 2023 that Forge will have 175.1 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 Third Quarter 2023
Additional Business Metrics for the Third Quarter 2023
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.
Webcast/Conference Call Details
Forge will host a webcast conference call today, November 7th, 2023, 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 (888) 440-4165 from the United States, or +1 (646) 960-0858 internationally. The conference ID is 5410143. The Supplemental Investor Information for this quarter is also posted on 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 the United States of America ("GAAP"), we present Adjusted EBITDA, a non-GAAP financial measure. We use Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA, when taken together with the corresponding GAAP financial measure, provides meaningful supplemental information regarding our performance by excluding specific financial items that have less bearing on our core operating performance. We consider Adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis.
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 defined Adjusted EBITDA as net loss, adjusted to exclude: (i) interest expense, net, (ii) provision for or benefit from income taxes, (iii) depreciation and amortization, (iv) share-based compensation expense, (v) change in fair value of warrant liabilities, (vi) acquisition-related transaction costs, and (vii) other significant gains, losses, and expenses (such as impairments, transaction bonus) 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.
Unaudited Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars, except share and per share data)
September 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
155,127
$
193,136
Restricted cash
1,299
1,829
Accounts receivable, net
3,871
3,544
Prepaid expenses and other current assets
10,148
8,379
Total current assets
$
170,445
$
206,888
Property and equipment, net
317
359
Internal-use software, net
5,023
7,640
Goodwill and other intangible assets, net
130,897
133,887
Operating lease right-of-use assets
3,379
5,706
Payment-dependent notes receivable, noncurrent
5,763
7,371
Other assets, noncurrent
1,696
1,878
Total assets
$
317,520
$
363,729
Liabilities, convertible preferred stock and stockholders’ equity
Current liabilities:
Accounts payable
$
1,480
$
2,797
Accrued compensation and benefits
8,798
13,271
Accrued expenses and other current liabilities
8,121
6,421
Operating lease liabilities, current
2,300
3,896
Total current liabilities
$
20,699
$
26,385
Operating lease liabilities, noncurrent
2,002
3,541
Payment-dependent notes payable, noncurrent
5,763
7,371
Warrant liabilities
3,321
606
Other liabilities, noncurrent
185
365
Total liabilities
$
31,970
$
38,268
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value; 175,173,113 and 172,560,916 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
18
18
Additional paid-in capital
534,659
509,094
Accumulated other comprehensive loss
601
693
Accumulated deficit
(254,843
)
(190,418
)
Total Forge Global Holdings, Inc. stockholders’ equity
$
280,435
$
319,387
Noncontrolling Interest
5,115
6,074
Total stockholders’ equity
$
285,550
$
325,461
Total liabilities, convertible preferred stock and stockholders’ equity
$
317,520
$
363,729
FORGE GLOBAL HOLDINGS, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, except share and per share data)
Three Months Ended
Nine Months Ended
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Revenues:
Placement fees
$
7,283
$
5,723
$
8,227
$
17,638
$
33,763
Custodial administration fees
11,280
10,997
7,673
33,124
18,799
Total revenues
$
18,563
$
16,720
$
15,900
$
50,762
$
52,562
Transaction-based expenses:
Transaction-based expenses
(148
)
(83
)
(86
)
(250
)
(397
)
Total revenues, less transaction-based expenses
$
18,415
$
16,637
$
15,814
$
50,512
$
52,165
Operating expenses:
Compensation and benefits
27,650
25,154
44,040
78,566
115,064
Professional services
2,883
3,265
3,799
8,884
11,169
Acquisition-related transaction costs
—
—
821
—
5,219
Advertising and market development
910
876
928
2,463
3,873
Rent and occupancy
1,142
1,148
1,097
3,616
3,803
Technology and communications
3,763
3,475
3,536
10,628
8,368
General and administrative
1,870
3,525
2,601
8,143
7,373
Depreciation and amortization
1,710
1,747
1,428
5,246
4,531
Total operating expenses
$
39,928
$
39,190
$
58,250
$
117,546
$
159,400
Operating loss
$
(21,513
)
$
(22,553
)
$
(42,436
)
$
(67,034
)
$
(107,235
)
Interest and other income (expenses):
Interest income
1,725
1,319
874
4,553
1,161
Change in fair value of warrant liabilities
907
(3,790
)
25,210
(2,715
)
19,808
Other income (expenses), net
215
217
202
647
731
Total interest income and other income (expenses)
$
2,847
$
(2,254
)
$
26,286
$
2,485
$
21,700
Loss before provision for income taxes
$
(18,666
)
$
(24,807
)
$
(16,150
)
$
(64,549
)
$
(85,535
)
Provision for income taxes
291
293
48
769
206
Net loss
$
(18,957
)
$
(25,100
)
$
(16,198
)
$
(65,318
)
$
(85,741
)
Net loss attributable to noncontrolling interest
$
(609
)
$
(211
)
$
—
$
(893
)
$
—
Net loss attributable to Forge Global Holdings, Inc.
$
(18,348
)
$
(24,889
)
$
(16,198
)
$
(64,425
)
$
(85,741
)
Net loss per share attributable to Forge Global Holdings, Inc. common stockholders:
Basic
$
(0.11
)
$
(0.14
)
$
(0.10
)
$
(0.37
)
$
(0.64
)
Diluted
$
(0.11
)
$
(0.14
)
$
(0.12
)
$
(0.37
)
$
(0.66
)
Weighted-average shares used in computing net loss per share attributable to Forge Global Holdings, Inc. common stockholders:
Basic
173,957,880
173,289,549
169,838,778
173,045,721
134,683,950
Diluted
173,957,880
173,289,549
170,209,256
173,045,721
135,960,612
FORGE GLOBAL HOLDINGS, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
Three Months Ended
Nine Months Ended
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Cash flows from operating activities:
Net loss
$
(18,957
)
$
(25,100
)
$
(16,198
)
$
(65,318
)
$
(85,741
)
Adjustments to reconcile net loss including noncontrolling interest to net cash (used in) provided by operations:
Share-based compensation
9,233
8,809
26,712
25,443
45,974
Depreciation and amortization
1,711
1,747
1,428
5,247
4,531
Transaction expenses related to the Merger
—
—
—
—
3,132
Amortization of right-of-use assets
748
734
858
2,327
2,819
Loss on impairment of long lived assets
—
—
—
536
446
Allowance for doubtful accounts
358
49
25
529
294
Change in fair value of warrant liabilities
(907
)
3,790
(25,210
)
2,715
(19,808
)
Settlement of related party promissory notes
—
—
—
—
5,517
Changes in operating assets and liabilities:
Accounts receivable
456
(1,448
)
(1,586
)
(857
)
2,042
Prepaid expenses and other assets
1,371
(2,227
)
2,678
1,590
(4,265
)
Accounts payable
(89
)
148
(1,886
)
(1,318
)
(43
)
Accrued expenses and other liabilities
723
1,691
1,584
2,011
402
Accrued compensation and benefits
3,042
(783
)
1,558
(4,472
)
(11,118
)
Operating lease liabilities
(1,236
)
(1,032
)
(1,361
)
(3,317
)
(3,942
)
Net cash used in operating activities
$
(3,547
)
$
(13,622
)
$
(11,398
)
$
(34,884
)
$
(59,760
)
Cash flows from investing activities:
Purchases of property and equipment
(14
)
(28
)
(10
)
(113
)
(116
)
Purchases of intangible assets
—
—
(29
)
—
(126
)
Capitalized internal-use software development costs
—
—
(1,358
)
—
(4,590
)
Purchases of certificates of deposit
(515
)
(2,665
)
—
(3,180
)
—
Net cash used in investing activities
$
(529
)
$
(2,693
)
$
(1,397
)
$
(3,293
)
$
(4,832
)
Cash flows from financing activities:
Proceeds from the Merger
—
—
—
—
7,865
Proceeds from PIPE investment and A&R FPA investors
—
—
—
—
208,500
Payments for offering costs
—
—
—
—
(56,852
)
Proceeds from exercise of Public Warrants
—
—
804
—
22,940
Proceeds from exercise of options, including proceeds from repayment of promissory notes
23
269
492
353
997
Taxes withheld and paid related to net share settlement of equity awards
—
—
—
(557
)
—
Formation of Forge Europe
—
—
9,488
—
9,488
Payments for redemption of Public Warrants
—
—
(165
)
—
(165
)
Net cash (used in) provided by financing activities
$
23
$
269
$
10,619
$
(204
)
$
192,773
Effect of changes in currency exchange rates on cash and cash
(333
)
(53
)
(159
)
(158
)
(159
)
Net (decrease) increase in cash and cash equivalents
(4,386
)
(16,099
)
(2,335
)
(38,539
)
128,022
Cash, cash equivalents and restricted cash, beginning of the period
160,812
176,911
206,761
194,965
76,404
Cash, cash equivalents and restricted cash, end of the period
$
156,426
$
160,812
$
204,426
$
156,426
$
204,426
Reconciliation of cash, cash equivalents and restricted cash to the amounts reported within the consolidated balance sheets
Cash and cash equivalents
$
155,127
$
159,526
$
202,603
$
155,127
$
202,603
Restricted cash
1,299
1,286
1,823
1,299
1,823
Total cash, cash equivalents and restricted cash, end of the period
$
156,426
$
160,812
$
204,426
$
156,426
$
204,426
FORGE GLOBAL HOLDINGS, INC.
Reconciliation of GAAP to Non-GAAP Results
(In thousands of U.S. dollars)
Three Months Ended
Nine Months Ended
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Net loss
$
(18,957
)
$
(25,100
)
$
(16,198
)
$
(65,318
)
$
(85,741
)
Add:
Interest income (expense), net
(1,725
)
(1,319
)
(874
)
(4,553
)
(1,161
)
Provision for (benefit from) income taxes
291
293
48
769
206
Depreciation and amortization
1,710
1,747
1,428
5,246
4,531
Loss or impairment on long lived assets
—
—
—
536
446
Share-based compensation expense
9,233
8,809
26,712
25,443
45,974
Change in fair value of warrant liabilities
(907
)
3,790
(25,210
)
2,715
(19,808
)
Acquisition-related transaction costs (1)
—
—
821
—
5,219
Transaction bonus (2)
—
—
—
—
17,735
Adjusted EBITDA
$
(10,355
)
$
(11,780
)
$
(13,273
)
$
(35,162
)
$
(32,599
)
(1)
Acquisition-related transaction costs represent charges involved in the merger between Forge Global, Inc. and Motive Capital Corp as further described in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “Merger”), other business combinations, and strategic opportunities. These expenses include legal, accounting, and investment banking advisory services.
(2)
Represents a one-time transaction bonus to certain executives as a result of the consummation of the Merger.
FORGE GLOBAL HOLDINGS, INC. SUPPLEMENTAL FINANCIAL INFORMATION KEY OPERATING METRICS (In thousands of U.S. dollars)
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, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
TRADING BUSINESS
Trades
567
448
426
1,321
1,652
Volume
234,141
153,182
226,229
515,486
975,984
Net Take Rate
3.0
%
3.7
%
3.6
%
3.4
%
3.4
%
Placement fee revenues, less transaction-based expenses
7,135
5,640
8,141
17,388
33,366
As of
QoQ
YoY
Dollars in thousands
September 30,
2023
June 30,
2023
September 30,
2022
Change
% Change
Change
% Change
CUSTODY BUSINESS
Total Custodial Accounts
2,023,756
1,970,617
1,811,774
53,139
3
%
211,982
12
%
Assets Under Custody
$
15,148,480
$
15,299,816
$
14,967,314
$
(151,336
)
(1
)%
$
181,166
1
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107917613/en/
Investor Relations Contact: Dominic Paschel ir@forgeglobal.com
Media Contact: Lindsay Riddell press@forgeglobal.com
1 Year Forge Global Chart |
1 Month Forge Global Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions