Runway Growth Finance Corp Reports Second Quarter Financial Results for 2024
Intellectia.AI Updated: 1970-01-01
Runway Growth Finance Corp. Reports Second Quarter Financial Results for 2024
Menlo Park, Calif., August 8, 2024 – Runway Growth Finance Corp. (NASDAQ:RWAY) ("Runway Growth" or the "Company"), a leading provider of flexible capital solutions to late- and growth-stage companies, today announced its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change (%) | Consensus Estimate (Q2 2024) |
|---|---|---|---|---|
| Total Investment Income | $34.2M | $41.9M | -18.4% | $37.85M |
| Net Investment Income | $14.6M | $19.7M | -25.9% | - |
| Earnings Per Share (EPS) | $0.37 | $0.49 | -24.5% | $0.44 |
| Net Asset Value (NAV) Per Share | $13.14 | $14.17 | -7.3% | - |
| Operating Expenses | $19.6M | $22.2M | -11.7% | - |
Interpretation : Runway Growth Finance Corp. experienced a decrease in both total investment income and net investment income year-over-year, which fell short of the Wall Street consensus estimates for revenue and earnings per share (EPS). The decrease in net asset value (NAV) per share further indicates a challenging quarter.
Revenue Performance by Segment
| Segment (Type) | Q2 2024 Revenue | YoY Change (%) |
|---|---|---|
| Total Investment Income | $34.2M | -18.4% |
| Net Investment Income | $14.6M | -25.9% |
| Dollar-weighted Annualized Yield | 15.1% | - |
Interpretation : The overall revenue performance by Runway Growth's key segments has seen a noticeable decline year-over-year. However, the company's dollar-weighted annualized yield on debt investments remains strong at 15.1%.
Operational Data
| Key Operational Metrics | Q2 2024 |
|---|---|
| Investment Portfolio Value | $1.1B |
| Total Number of Portfolio Companies | 55 |
| Senior Secured Loans | 98.6% of term loans |
| Shares Repurchased | 1,074,842 |
| Available Liquidity | $249.8M |
| Core Leverage Ratio | 110% |
Management Commentary
"In the second quarter, Runway Growth executed on two new investments as the Company thoughtfully expanded its high quality, late-stage portfolio," said David Spreng, Founder and CEO of Runway Growth. "Heading into the second half of the year our pipeline is strong, and we remain focused on the performance of our portfolio while capitalizing on opportunities to re-deploy capital and increase the overall diversification of our investments. As a result of our strict underwriting and ongoing monitoring of our portfolio, we feel confident in our ability to position our shareholders for long-term returns."
Dividends and Share Repurchase Program
The Company's board of directors declared a regular quarterly distribution of $0.40 per share and a supplemental distribution of $0.05 per share for the third quarter of 2024, payable on August 26, 2024. Furthermore, the Company's board authorized a new share repurchase program for up to $15.0 million of its outstanding shares, effective until July 30, 2025.
Forward Guidance
No forward guidance was provided in the release.
Stock Price Movement
Following the earnings release, Runway Growth's stock price experienced a minor change of approximately 0.18%.
For further details, please visit the Runway Growth Finance Corp. website or refer to their full earnings report.
