Forge Global’s Q4 2024: Revenue Up, Earnings a Mixed Bag

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Forge Global (NYSE: FRGE), a leading player in the pre-IPO marketplace, recently announced its fourth-quarter and full-year 2024 financial results.

While revenue figures showed healthy growth, earnings results presented a more complex picture.

Key Takeaways from Forge Global’s Q4 2024 Report:

• Strong Revenue Growth: Total revenue less transaction-based expenses increased by 13% year-over-year, reaching $78.7 million for the full year. This indicates Forge Global is expanding its footprint in the private market space.

• Marketplace Momentum: Marketplace revenues saw a substantial 46% jump, totaling $37.0 million for the year. This highlights Forge Global’s strong position in connecting buyers and sellers of private company stock.

• Trading Volume Surge: Trading volume soared by 73% year-over-year to $1.3 billion, demonstrating growing interest and activity in the pre-IPO market.

• Earnings Miss: The company reported an EPS of -$0.08, slightly below some analyst expectations. However, other estimates put the result as a positive surprise, showcasing the varied perspectives on the company’s performance.

• Loss Reduction: The full-year net loss narrowed significantly, down to $67.8 million from $91.5 million the previous year. This reflects Forge Global’s efforts to improve operational efficiency and control costs.

What Does This Mean for Forge Global?

Forge Global’s Q4 2024 results paint a picture of a company experiencing strong growth in its core business. The increase in revenue, marketplace activity, and trading volume are all positive signs. However, the earnings miss highlights the challenges the company faces in achieving profitability.

Future Outlook:

Forge Global’s management remains optimistic about the company’s future. The company’s focus on innovation, technology, and cost management could pave the way for future growth and profitability.

The authorization of a $10 million share repurchase program also indicates management’s confidence in the company’s long-term prospects.

Investors will be watching closely to see how Forge Global navigates the evolving landscape of the pre-IPO market.

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