Forge(FRGE)2025-03-06 03:14Financial Data and Key Metrics Changes - Forge reported a 13% year-over-year revenue growth for 2024, totaling 69.4 million in 2023 [37] - The net loss for 2024 was 91.5 million in the previous year [47] - Adjusted EBITDA loss for 2024 was 48.8 million in 2023 [47] - Cash, cash equivalents, and restricted cash at the end of Q4 2024 were 115.6 million in the previous quarter [36] Business Line Data and Key Metrics Changes - Marketplace revenue for Q4 2024 was approximately flat at 8.7 million in Q3 2024, driven by a decrease in transaction volume [26] - Total marketplace revenue for 2024 was 25.8 million in 2023 [38] - Custodial administration fees for 2024 totaled 44 million in 2023 [42] Market Data and Key Metrics Changes - The Forge Private Market Index increased by 33% over the prior three months as of February 2025, outperforming major indices like NASDAQ and S&P 500 [14] - Custodial cash balances at the end of Q4 2024 were 470 million at the end of Q3 2024 [29] - Total custody accounts increased 14% year-over-year to 2.4 million from 2.1 million [44] Company Strategy and Development Direction - The company aims to achieve a fully automated trading experience and enhance data transparency to drive market adoption and liquidity [52] - Forge is focused on diversifying its sources of liquidity and expanding its SPV structures to include multi-name baskets [71] - The company plans to continue investing in technology and strategic initiatives while managing costs to reach profitability by 2026 [18][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong start to 2025, with a robust deal pipeline and improving market dynamics [13] - The company is cautious about the political environment and economic factors that could impact market enthusiasm [16] - Management expects Q1 2025 marketplace revenue to meet or exceed the best quarter in 2024, indicating a positive outlook for the year [17] Other Important Information - The company has authorized a stock buyback program of up to 10 million, reflecting confidence in its stock valuation [36] - Forge's employee count decreased to 300 from 331 year-over-year, with a growing number of offshore contractors [49] Q&A Session Summary Question: Can you elaborate on the go-to-market strategy for fully automated trading capabilities? - Management indicated that the fully automated experience will serve all market segments and is a key focus of their next-generation platform [58] Question: Thoughts on democratizing access to private markets through blockchain? - Management supports the idea and sees potential for strategic partnerships with retail brokerage firms to integrate private market access [62] Question: How are SPVs being utilized to drive liquidity in private markets? - Management noted significant growth in SPVs, with AUM increasing from 300-1 billion, and plans to expand into multi-name SPVs [71] Question: Outlook for 2025 amidst macroeconomic uncertainty? - Management expects steady momentum in 2025, with improved conditions for IPOs and capital raising, although not a rapid recovery [78] Question: How will potential IPO activity impact Forge's results? - Management stated that increased IPO activity would correlate with higher volume on their platform, but a steady stream of IPOs is needed for a significant impact [90]