Forge(FRGE) - 2023 Q4 - Annual Results

Revenue and Financial Performance - Total revenue less transaction-based expenses increased from $18.4 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 $69.82 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 $25.79 million, a decrease of 36.5% compared to $40.67 million in 2022[36] - Custodial administration fees increased to $44.03 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 $25.4 million, a 37% decrease from $40.2 million in 2022[44] Trading and Volume Metrics - Trading volume in Q4 2023 was $250.4 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 $234.1 million in the previous quarter[44] - Trading volume for the year ended December 31, 2023, was $765.9 million, a 37% decrease from $1.22 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 $26.2 million in Q4 2023, primarily due to a $2.5 million increase in accrued legal expenses[5] - Adjusted EBITDA loss increased from $10.4 million in Q3 2023 to $13.6 million in Q4 2023[5] - Net loss for the year ended December 31, 2023, was $91.55 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 $91.5 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, compared to $(46.9) million in 2022[40] Cash and Liquidity - Cash and cash equivalents as of December 31, 2023 was $144.7 million[7] - Cash and cash equivalents decreased from $193.14 million in 2022 to $144.72 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 $68.8 million in 2022[38] - Cash, cash equivalents, and restricted cash at the end of December 31, 2023, were $145.8 million, down from $194.9 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 $15.6 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 $15.647 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 $15.647 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 $2.68 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 $203.94 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 $57.9 million in 2022[38] Total Assets and Liabilities - Total assets decreased from $363.73 million in 2022 to $310.73 million in 2023, a decline of 14.6%[34] - Total liabilities increased from $38.27 million in 2022 to $42.31 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 $635 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]