Workflow
Forge(FRGE) - 2023 Q4 - Annual Results
FRGEForge(FRGE)2024-03-26 20:22

Revenue and Financial Performance - Total revenue less transaction-based expenses increased from 18.4millioninQ32023to18.4 million in Q3 2023 to 18.9 million in Q4 2023, a 13% year-over-year increase[4][10] - Total revenues for the year ended December 31, 2023, were 69.82million,comparedto69.82 million, compared to 69.38 million in 2022, showing a slight increase of 0.6%[36] - Marketplace revenue for the year ended December 31, 2023, was 25.79million,adecreaseof36.525.79 million, a decrease of 36.5% compared to 40.67 million in 2022[36] - Custodial administration fees increased to 44.03millionin2023,up53.344.03 million in 2023, up 53.3% from 28.72 million in 2022[36] - Marketplace revenues, less transaction-based expenses, for the year ended December 31, 2023, were 25.4million,a3725.4 million, a 37% decrease from 40.2 million in 2022[44] Trading and Volume Metrics - Trading volume in Q4 2023 was 250.4million,up1250.4 million, up 1% year-over-year and 7% quarter-over-quarter[10][17] - Volume for the three months ended December 31, 2023, was 250.4 million, a 7% increase from 234.1millioninthepreviousquarter[44]−TradingvolumefortheyearendedDecember31,2023,was234.1 million in the previous quarter[44] - Trading volume for the year ended December 31, 2023, was 765.9 million, a 37% decrease from 1.22billionin2022[44]−TradesfortheyearendedDecember31,2023,were1,756,a201.22 billion in 2022[44] - Trades for the year ended December 31, 2023, were 1,756, a 20% decrease from 2,184 in 2022[44] Net Loss and Adjusted EBITDA - Net loss increased from 19.0 million in Q3 2023 to 26.2millioninQ42023,primarilyduetoa26.2 million in Q4 2023, primarily due to a 2.5 million increase in accrued legal expenses[5] - Adjusted EBITDA loss increased from 10.4millioninQ32023to10.4 million in Q3 2023 to 13.6 million in Q4 2023[5] - Net loss for the year ended December 31, 2023, was 91.55million,animprovementfromthe91.55 million, an improvement from the 111.91 million net loss in 2022, reflecting a reduction of 18.2%[36] - Net loss for the year ended December 31, 2023, was 91.5million,comparedto91.5 million, compared to 111.9 million in 2022, showing a reduction in losses[38] - Adjusted EBITDA for the year ended December 31, 2023, was (48.8)million,comparedto(48.8) million, compared to (46.9) million in 2022[40] Cash and Liquidity - Cash and cash equivalents as of December 31, 2023 was 144.7million[7]−Cashandcashequivalentsdecreasedfrom144.7 million[7] - Cash and cash equivalents decreased from 193.14 million in 2022 to 144.72millionin2023,adeclineof25.1144.72 million in 2023, a decline of 25.1%[34] - Net cash used in operating activities for the year ended December 31, 2023, was 41.5 million, compared to 68.8millionin2022[38]−Cash,cashequivalents,andrestrictedcashattheendofDecember31,2023,were68.8 million in 2022[38] - Cash, cash equivalents, and restricted cash at the end of December 31, 2023, were 145.8 million, down from 194.9millionattheendof2022[38]CustodialAccountsandAssetsUnderCustody−Totalassetsundercustodyincreasedfrom194.9 million at the end of 2022[38] Custodial Accounts and Assets Under Custody - Total assets under custody increased from 14.9 billion in 2022 to 15.6billionin2023,a515.6 billion in 2023, a 5% year-over-year increase[10][25] - Total custodial accounts increased from 1.87 million in 2022 to 2.08 million in 2023, an 11% year-over-year increase[25] - Total Custodial Accounts increased by 55,112 (3%) to 2,078,868 as of December 31, 2023, compared to September 30, 2023[46] - Assets Under Custody grew by 498.99 million (3%) to 15.647billionasofDecember31,2023,comparedtoSeptember30,2023[46]−TotalCustodialAccountsincreasedby207,722(1115.647 billion as of December 31, 2023, compared to September 30, 2023[46] - Total Custodial Accounts increased by 207,722 (11%) to 2,078,868 as of December 31, 2023, compared to December 31, 2022[46] - Assets Under Custody increased by 777.21 million (5%) to 15.647billionasofDecember31,2023,comparedtoDecember31,2022[46]−TotalCustodialAccountsrepresentfundedorunfundedaccountswithactivetransferactivity,indicatingfuturerevenuepotentialfrommaintenanceandtransactionfees[46]−AssetsUnderCustodyincludeallclientholdingsmanagedbythecompany,withfeesearnedfrommaintenanceactivitiesratherthanassetvalue[46]NetTakeRateandInterestIncome−Nettakeratewas3.215.647 billion as of December 31, 2023, compared to December 31, 2022[46] - Total Custodial Accounts represent funded or unfunded accounts with active transfer activity, indicating future revenue potential from maintenance and transaction fees[46] - Assets Under Custody include all client holdings managed by the company, with fees earned from maintenance activities rather than asset value[46] Net Take Rate and Interest Income - Net take rate was 3.2% in Q4 2023 and 3.3% for the full year 2023[10][17] - Net Take Rate remained stable at 3.3% for both 2023 and 2022[44] - Interest income, net, increased to 6.42 million in 2023, up 139.5% from 2.68millionin2022[36]OperatingExpensesandShare−BasedCompensation−TotaloperatingexpensesfortheyearendedDecember31,2023,were2.68 million in 2022[36] Operating Expenses and Share-Based Compensation - Total operating expenses for the year ended December 31, 2023, were 160.84 million, down from 203.94millionin2022,areductionof21.1203.94 million in 2022, a reduction of 21.1%[36] - Share-based compensation for the year ended December 31, 2023, was 34.3 million, down from 57.9millionin2022[38]TotalAssetsandLiabilities−Totalassetsdecreasedfrom57.9 million in 2022[38] Total Assets and Liabilities - Total assets decreased from 363.73 million in 2022 to 310.73millionin2023,adeclineof14.6310.73 million in 2023, a decline of 14.6%[34] - Total liabilities increased from 38.27 million in 2022 to 42.31millionin2023,ariseof10.642.31 million in 2023, a rise of 10.6%[34] Forge Trust Custodial Cash and IOIs - Forge Trust Custodial Cash totaled 505 million in Q4 2023, down 20% year-over-year from 635million[17]−Totalnumberofcompanieswithindicationsofinterest(IOIs)was485inQ42023,up11635 million[17] - Total number of companies with indications of interest (IOIs) was 485 in Q4 2023, up 11% year-over-year[17] Net Loss Per Share - Net loss per share attributable to Forge Global Holdings, Inc. common stockholders was 0.52 for the year ended December 31, 2023, compared to $0.78 in 2022, showing a reduction of 33.3%[36]