TriplePoint Venture Growth BDC Corp Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-08
TriplePoint Venture Growth BDC Corp. Reports Second Quarter 2024 Financial Results
TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) has reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Wall Street Consensus (Q2 2024) | |
|---|---|---|---|---|---|---|
| Total Revenue | $27.1 million | N/A | $35.2 million | -22.9% | N/A | $29.36 million |
| Earnings Per Share (EPS) | $0.33 | N/A | $0.53 | -37.7% | N/A | $0.44 |
The company's total revenue for Q2 2024 was $27.1 million, missing the Wall Street consensus estimate of $29.36 million. The EPS for the current quarter stood at $0.33, which also lagged behind the consensus estimate of $0.44. Year-over-year, revenue decreased by 22.9%, and EPS decreased by 37.7%.
Segment Revenue Performance
| Major Segments | Q2 2024 Actual | Q1 2024 Actual | Previous Guidance | QoQ Change |
|---|---|---|---|---|
| New Debt Commitments | $52.0 million | $10.0 million | N/A | +420% |
| Funded Debt Investments | $38.7 million | $13.5 million | N/A | +186% |
TriplePoint signed $188.4 million of term sheets with venture growth-stage companies and closed $52.0 million of new debt commitments, representing a significant 420% increase from the prior quarter. They funded $38.7 million in debt investments, an increase of 186% quarter-over-quarter. This demonstrates substantial growth in investment activity and commitments.
Operational Data
| Key Operational Data | Q2 2024 | Q1 2024 | YoY Change |
|---|---|---|---|
| Net investment income (per share) | $0.33 | N/A | -37.7% |
| Return on average equity | 14.6% | N/A | N/A |
| At-the-market equity offering | $18.2M | N/A | N/A |
The company earned net investment income of $12.6 million ($0.33 per share) with a return on average equity of 14.6%. Net proceeds from the ATM equity offering stood at $18.2 million.
Comments from Company's Officers
"Given continued challenges in the venture capital markets, we remained on our path of selectively increasing our investment activity and positioning TPVG for the future," said Jim Labe, Chairman and CEO. "We are pleased with the notable increase in signed term sheets, closed debt commitments, and funding activity during the quarter."
Dividends and Share Repurchase Program
TriplePoint declared a third quarter 2024 distribution of $0.30 per share, payable on September 30, 2024. The company has paid total declared distributions of $15.75 per share since its initial public offering.
Forward Guidance
TriplePoint did not provide any specific forward guidance in the earnings release.
Stock Price Movement
Following the earnings release, TriplePoint's stock price experienced a decrease of -1.23%.
Overall, although TriplePoint Venture Growth BDC Corp. showed significant growth in term sheets and debt commitments, it missed its revenue and EPS expectations, resulting in a modest decline in stock price post-earnings announcement.
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