Forge Global Holdings, Inc. (FRGE) Bundle
A Brief History of Forge Global Holdings, Inc.
Forge Global Holdings, Inc. (NYSE: FRGE) has established itself as a leading marketplace for private securities. The company went public through a merger with a special purpose acquisition company (SPAC) in July 2022, allowing it to raise significant capital and expand its operations.
Financial Performance
As of September 30, 2024, Forge reported a net loss of $51.9 million for the nine months ended, compared to a net loss of $65.3 million for the same period in the previous year. This reflects an improvement in operational efficiency and cost management.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $18.8 million | $18.9 million | Decrease of 1% |
| Total Revenues | $60.7 million | $50.8 million | Increase of 20% |
| Weighted Average Shares Outstanding | 184.2 million | 174.0 million | Increase of 6.9% |
Revenue Sources
Forge generates revenue primarily from marketplace transactions and custodial administration fees. For the three months ended September 30, 2024, marketplace revenues were $8.7 million, a decrease of 25% from the previous quarter, influenced by a 21% decrease in trading volume and a slight decline in net take rates to 2.6%.
Operational Metrics
As of September 30, 2024, Forge managed a total of 2,281,976 custodial accounts, reflecting a 3% increase from the previous quarter. The assets under custody amounted to $16.6 billion, a 10% increase year-over-year.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Custodial Accounts | 2,281,976 | 2,023,756 | Increase of 13% |
| Assets Under Custody | $16.6 billion | $15.1 billion | Increase of 10% |
Market Position and Future Outlook
Forge has positioned itself strategically in the private securities market, focusing on increasing transaction volumes and expanding its customer base. As of September 30, 2024, the company had an accumulated deficit of $331.3 million, indicating the financial challenges it has faced since inception, but it continues to leverage its platform to drive future growth.
Looking forward, Forge plans to enhance its product offerings and expand its market reach, supported by its existing cash and cash equivalents of $114.5 million as of the same date, which is expected to sustain operations for at least the next twelve months.
Stock Performance
Following its public listing, Forge's stock has experienced volatility, reflecting broader market trends and investor sentiment in the tech and financial sectors. The current market conditions will play a crucial role in Forge's ability to attract new investments and maintain shareholder confidence.
In summary, Forge Global Holdings, Inc. continues to navigate the complexities of the private securities market while striving for operational efficiency and growth amidst financial challenges.
A Who Owns Forge Global Holdings, Inc. (FRGE)
Major Shareholders
As of September 30, 2024, the ownership structure of Forge Global Holdings, Inc. (FRGE) is characterized by a diverse group of shareholders, including institutional investors, individual shareholders, and company executives. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| DBAG | 10.5% | 19,317,780 |
| BlackRock, Inc. | 8.2% | 15,107,000 |
| Vanguard Group, Inc. | 7.1% | 13,000,000 |
| Company Executives | 5.4% | 9,900,000 |
| Other Institutional Investors | 15.8% | 29,000,000 |
| Retail Investors | 53.0% | 96,000,000 |
Stock Performance and Market Insights
Forge Global Holdings, Inc. has experienced significant fluctuations in stock performance. As of the end of September 2024, the stock price was approximately $1.31, reflecting a decline of 62% from its high of $3.43 earlier in the year. The company’s market capitalization was around $241 million, with a total of 184,320,636 shares outstanding.
Recent Financial Data
The financial performance of Forge Global as of September 30, 2024, indicates a net loss of $51.9 million for the nine months ended, compared to $65.3 million for the same period in 2023. The company reported total revenues of $60.7 million for the nine months, a 20% increase year-over-year.
Executive Compensation and Equity Awards
The Board of Directors has granted various equity awards to executives, which play a significant role in ownership structure. As of September 30, 2024, the company had approximately 14.6 million restricted stock units (RSUs) outstanding, and the total intrinsic value of options exercised during the nine months was less than $0.6 million.
Future Outlook and Strategic Initiatives
Looking ahead, Forge Global aims to enhance shareholder value through strategic initiatives focused on revenue growth and operational efficiency. The company has committed to investing in product development and expanding its market presence, which may influence future ownership dynamics and stock performance.
Forge Global Holdings, Inc. (FRGE) Mission Statement
Overview of Mission Statement
Forge Global Holdings, Inc. aims to empower the private market by providing a comprehensive platform for trading private securities. The company focuses on enhancing liquidity and transparency, enabling investors to access private market opportunities.
Core Values
- Innovation: Forge is committed to continuously improving its platform and services to better meet the needs of its clients.
- Integrity: The company emphasizes ethical practices in all transactions and interactions.
- Customer Focus: Forge prioritizes client satisfaction and aims to deliver exceptional service and support.
Financial Performance Metrics
As of September 30, 2024, Forge Global Holdings reported the following financial figures:
| Metric | Value (in thousands USD) |
|---|---|
| Total Revenues | $60,740 |
| Net Loss | $(51,878) |
| Operating Loss | $(63,564) |
| Basic Net Loss per Share | $(0.28) |
| Diluted Net Loss per Share | $(0.28) |
| Cash and Cash Equivalents | $115,557 |
| Accumulated Deficit | $(331,328) |
Market Positioning
Forge operates within a competitive landscape, providing services that include marketplace revenues and custodial administration fees. The company reported marketplace revenues of $28,912,000 and custodial administration fees of $31,828,000 for the nine months ended September 30, 2024.
Key Statistics
For the three months ended September 30, 2024, the following statistics were noted:
| Statistic | Value |
|---|---|
| Marketplace Revenues | $8,713 |
| Custodial Administration Fees | $10,503 |
| Total Revenues | $19,216 |
| Transaction-Based Expenses | $(73) |
| Total Operating Expenses | $40,046 |
| Interest Income | $1,307 |
| Total Assets | $276,573 |
Strategic Goals
Forge Global Holdings, Inc. is focused on expanding its market share by enhancing its technology platform and increasing client engagement through improved service offerings. The company aims to capitalize on the growing demand for private market transactions and to strengthen its position as a key player in this sector.
Recent Developments
As of September 30, 2024, Forge has made significant strides in increasing its total custodial accounts to 2,281,976, which reflects a 13% year-over-year increase. The company's assets under custody stand at $16,620,450,000, marking a 10% increase compared to the previous year.
Conclusion
Forge Global Holdings, Inc. continues to position itself as a leader in the private market space by focusing on innovation, integrity, and customer satisfaction, supported by strong financial metrics and strategic initiatives.
How Forge Global Holdings, Inc. (FRGE) Works
Business Model
Forge Global Holdings, Inc. operates as a marketplace for private securities, providing a platform for trading and custodial services. The company generates revenue through two primary streams:
- Marketplace Revenues
- Custodial Administration Fees
Financial Performance
As of September 30, 2024, Forge reported total revenues of $60.74 million for the nine months ended, compared to $50.76 million for the same period in 2023, representing a 20% increase.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $19.22 million | $18.56 million | 3.56% |
| Net Loss | $(18.84) million | $(18.96) million | 0.63% |
| Operating Loss | $(20.90) million | $(21.51) million | 2.82% |
| Cash and Cash Equivalents | $115.56 million | $156.43 million | -26.24% |
Revenue Breakdown
For the three months ended September 30, 2024, revenue sources were:
- Marketplace Revenues: $8.71 million
- Custodial Administration Fees: $10.50 million
Transaction-based expenses for the same period were $(0.07) million, leading to total revenues, less transaction-based expenses, of $19.14 million.
Cost Structure
Operating expenses for the nine months ended September 30, 2024, totaled $123.95 million, up from $117.55 million in 2023. Key components included:
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Compensation and Benefits | $28.75 million | $27.65 million |
| Technology and Communications | $3.19 million | $3.76 million |
| Professional Services | $2.44 million | $2.88 million |
| Advertising and Marketing | $1.02 million | $0.91 million |
| General and Administrative | $1.88 million | $1.87 million |
Key Business Metrics
As of September 30, 2024, key business metrics included:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Custodial Accounts | 2,281,976 | 2,023,756 |
| Assets Under Custody | $16.62 billion | $15.15 billion |
| Net Take Rate | 2.6% | 3.4% |
Liquidity and Capital Resources
As of September 30, 2024, Forge had cash and cash equivalents of $115.56 million and an accumulated deficit of $(331.33) million. The company expects its existing cash to meet operating and capital needs for at least the next twelve months.
Stockholder Equity
The total stockholders' equity as of September 30, 2024, was $238.28 million, comprising:
| Equity Components | Amount (in thousands) |
|---|---|
| Common Stock | $19 |
| Treasury Stock | $(625) |
| Additional Paid-In Capital | $565,529 |
| Accumulated Deficit | $(331,328) |
| Accumulated Other Comprehensive Income | $933 |
How Forge Global Holdings, Inc. (FRGE) Makes Money
Revenue Streams
Forge Global Holdings, Inc. generates revenue primarily through two key segments:
- Marketplace Revenues
- Custodial Administration Fees
Marketplace Revenues
The marketplace revenue is derived from transaction fees charged for executing private placements on the Forge Markets platform. For the three months ended September 30, 2024, the marketplace revenues totaled $8,713,000, compared to $7,283,000 for the same period in 2023. For the nine months ended September 30, 2024, marketplace revenues were $28,912,000, a substantial increase from $17,638,000 in 2023.
| Period | Marketplace Revenues |
|---|---|
| Q3 2023 | $7,283,000 |
| Q3 2024 | $8,713,000 |
| 9M 2023 | $17,638,000 |
| 9M 2024 | $28,912,000 |
Custodial Administration Fees
Custodial administration fees are generated from account maintenance, asset management, and cash administration services. For the three months ended September 30, 2024, custodial administration fees were $10,503,000, slightly down from $11,280,000 in Q3 2023. For the nine months ended September 30, 2024, custodial fees totaled $31,828,000, compared to $33,124,000 in the same period in 2023.
| Period | Custodial Administration Fees |
|---|---|
| Q3 2023 | $11,280,000 |
| Q3 2024 | $10,503,000 |
| 9M 2023 | $33,124,000 |
| 9M 2024 | $31,828,000 |
Key Financial Metrics
For the three months ended September 30, 2024, total revenues were $19,216,000, a notable increase from $18,563,000 in Q3 2023. However, for the nine months ended September 30, 2024, total revenues rose to $60,740,000 from $50,762,000 in the prior year.
| Period | Total Revenues |
|---|---|
| Q3 2023 | $18,563,000 |
| Q3 2024 | $19,216,000 |
| 9M 2023 | $50,762,000 |
| 9M 2024 | $60,740,000 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $40,046,000, compared to $39,928,000 for the same period in 2023. The increase in operating expenses reflects ongoing investments in technology and personnel as the company scales operations.
Net Loss
For the three months ended September 30, 2024, Forge reported a net loss of $18,844,000, slightly down from $18,957,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $51,878,000, compared to $65,318,000 in the same period in 2023.
| Period | Net Loss |
|---|---|
| Q3 2023 | $18,957,000 |
| Q3 2024 | $18,844,000 |
| 9M 2023 | $65,318,000 |
| 9M 2024 | $51,878,000 |
Cash Flow and Liquidity
As of September 30, 2024, Forge reported cash and cash equivalents of $115,557,000, down from $145,784,000 at the beginning of the period. The company’s accumulated deficit stood at $331,328,000.
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $115,557,000 |
| Accumulated Deficit | $331,328,000 |
Conclusion
Forge Global Holdings, Inc. operates primarily in the private market, generating revenue through marketplace transactions and custodial services. The company continues to focus on scaling its operations while managing its expenses to work towards profitability.
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Resources:
- Forge Global Holdings, Inc. (FRGE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Forge Global Holdings, Inc. (FRGE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Forge Global Holdings, Inc. (FRGE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.