Loading...
01/10 17:00
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects mixed signals: a slight revenue decline and ongoing losses contrast with optimistic future projections and a stock buyback program. Positive elements include improved EBITDA losses and strategic investments in automation and blockchain. However, unclear management responses in the Q&A and a lack of immediate catalysts, such as new partnerships or guidance changes, suggest limited short-term impact on stock price. The neutral sentiment is driven by balancing these factors.
Total Revenue (Q4 2024) $18.3 million, down from $19.1 million in Q3 2024, a decrease of 4.2% year-over-year due to uncertainty leading into the U.S. Presidential election and the pace of Fed interest rate reductions.
Marketplace Revenue (Q4 2024) $8.6 million, approximately flat compared to $8.7 million in Q3 2024, driven by a decrease in transaction volume to $299 million from $338 million in the prior quarter.
Custodial Administration Fees (Q4 2024) $10 million, down from $10.5 million in Q3 2024, a decrease of 4.8% year-over-year, largely driven by lower cash administration fees due to federal rate cuts.
Net Loss (Q4 2024) $16 million, improved from a net loss of $18.8 million in Q3 2024, due to lower operating expenses and higher other income.
Adjusted EBITDA Loss (Q4 2024) $10.9 million, compared to a loss of $11.4 million in Q3 2024, reflecting improved operational efficiency.
Cash, Cash Equivalents, and Restricted Cash (Q4 2024) $106.3 million, down from $115.6 million in Q3 2024, reflecting ongoing operational cash burn.
Total Revenue (Fiscal Year 2024) $78.7 million, up $9.3 million or 13% from $69.4 million in 2023, driven by a significant increase in marketplace revenues.
Marketplace Revenue (Fiscal Year 2024) $37.5 million, up 46% from $25.8 million in 2023, attributed to a 73% increase in trading volume.
Custodial Administration Fees (Fiscal Year 2024) $41.8 million, down from $44 million in 2023, due to a decline in average custodial cash balances and lower cash administration fees.
Net Loss (Fiscal Year 2024) $67.8 million, an improvement of $23.7 million from a net loss of $91.5 million in 2023, due to higher revenue and favorable reductions in the fair value of warrant liabilities.
Adjusted EBITDA Loss (Fiscal Year 2024) $43.7 million, compared to a loss of $48.8 million in 2023, reflecting improved operational performance.
Net Cash Used in Operating Activities (Fiscal Year 2024) $40.5 million, flat compared to $41.5 million in 2023, including one-time cash payments related to legacy legal matters.
Forge Private Market Index: The Forge Private Market Index is up 33% over the prior three months as of the end of February, outpacing major indices like NASDAQ and the S&P 500.
Forge Pro: Forge Pro delivers advanced institutional trading capabilities to 400 sophisticated investor clients.
Forge pricing standard: The Forge pricing standard is enjoying broader acceptance among private market participants.
Forge Accuidity Private Market Index: The Forge Accuidity Private Market Index is a standard-setting index foundational for new financial products.
Marketplace Revenue Growth: Marketplace revenue grew 46% year-over-year to $37 million.
IPO Pipeline: The IPO pipeline is expanding with 13 IPO filings of planned raises of $100 million or more in January.
Custodial Cash Balances: Custodial cash balances totaled $483 million at the end of Q4, a modest increase of 3%.
Cost Savings: Total cost savings of $11.9 million were achieved, exceeding the original goal.
Operating Expenses: Operating expenses decreased by $3 million to $37 million in Q4.
Employee Count: Total employee count decreased to 300 from 331 year-over-year.
Path to Profitability: Forge aims to achieve profitability by 2026.
Stock Buyback Program: The Board authorized a stock buyback program of up to $10 million.
Technology Enhancements: Focus on achieving a fully automated trading experience and enabling new financial products.
Political Environment: Concerns about the political environment, particularly related to the presidential election cycle, have the potential to dampen market enthusiasm and affect business activities.
Economic Factors: The impact of tariffs and other economic and foreign policy matters could negatively influence investor sentiment and market dynamics.
Regulatory Issues: The numerous federal rate cuts in 2024 have affected custodial cash administration fees, which are expected to continue impacting revenues in 2025.
Supply Chain Challenges: The company is experiencing challenges related to the pace of Fed interest rate reductions, which have contributed to a soft fourth quarter in marketplace business.
Cost Management: While the company has achieved significant cost savings, there are ongoing challenges in balancing selective investments with cost management as they aim for profitability.
Market Competition: The company faces competitive pressures in the private market, which may affect its ability to maintain or grow market share.
Marketplace Revenue Growth: Closed 2024 with 13% year-over-year revenue growth, including a 46% increase in marketplace revenue to $37 million.
Technology Improvements: Focused on achieving a fully automated trading experience and enhancing data transparency to drive access and liquidity.
Cost Management: Diligently managing costs while investing in strategic initiatives, targeting profitability by 2026.
Diversified Liquidity Sources: Increased access to a broad range of deal flow through various investment vehicles, enhancing marketplace revenue.
Stock Buyback Program: Board authorized a stock buyback program of up to $10 million, reflecting confidence in the company's valuation.
Q1 Marketplace Revenue Expectations: Expect Q1 marketplace revenue to meet or exceed the best quarter in 2024.
2025 Revenue Outlook: Anticipate revenues for full-year 2025 to exceed current expectations, driven by a strong deal pipeline.
Adjusted EBITDA Breakeven Target: Confident in reaching adjusted EBITDA breakeven by 2026.
Cost Savings: Achieved total cost savings of $11.9 million, with ongoing focus on cost management.
Custodial Administration Fees: Expect lower cash administration fees in 2025 due to reduced custodial cash balances and interest rates.
Stock Buyback Program: The Board has authorized a stock buyback program of up to $10 million, reflecting the belief that Forge stock is currently significantly undervalued and represents a compelling opportunity to increase shareholder value.
The earnings call showed improved financial metrics, such as a 28% increase in revenues and a 33% improvement in adjusted EBITDA loss, which are strong indicators of positive performance. Despite a net loss, the company has reduced cash used in operations and improved adjusted EPS by 29%. The cautious optimism in the Q&A and exploration of new partnerships in tokenization further support a positive outlook. However, the lack of specific breakeven guidance tempers the sentiment slightly, keeping it in the positive range rather than strong positive.
The earnings call shows strong financial performance with increased revenue and trading volume, improved EBITDA losses, and growth in custody accounts. The Q&A session highlights strategic initiatives in automation and blockchain, aligning with market trends. Despite uncertainties in IPO timing, the company is optimistic about 2025. Overall, the positive financial metrics, strategic vision, and growth potential suggest a positive stock price movement in the near term.
The earnings call reflects mixed signals: a slight revenue decline and ongoing losses contrast with optimistic future projections and a stock buyback program. Positive elements include improved EBITDA losses and strategic investments in automation and blockchain. However, unclear management responses in the Q&A and a lack of immediate catalysts, such as new partnerships or guidance changes, suggest limited short-term impact on stock price. The neutral sentiment is driven by balancing these factors.
The earnings call summary and Q&A suggest mixed financial performance with declining revenue and increasing losses. Despite optimistic guidance, there are concerns over macroeconomic factors, election uncertainty, and operational risks. The absence of a share buyback program and cautious investor sentiment further contribute to a negative outlook. The Q&A section did not provide significant positive insights, and management's lack of clarity on certain metrics adds to the uncertainty. Overall, the sentiment leans towards a negative stock price movement over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
