Forge Global (FRGE) Q2 2024 earnings summary

Executive summary

• Achieved fifth consecutive quarter of revenue growth, with Q2 revenue up 15% sequentially and up to 33% year-over-year, driven by a rebound in private market trading and higher valuations.

• Net loss narrowed to $13.7 million–$14 million in Q2 2024, improving from $18.6 million–$24.9 million in prior periods, supported by higher marketplace revenues and cost containment.

• Announced an 11% headcount reduction and other expense cuts, targeting $11.3 million in annualized savings to accelerate profitability.

• Completed business combination with Motive Capital Corp, resulting in Forge Global Holdings, Inc. as the public entity.

• Continued investment in technology platform, product innovation, and European expansion, including new indices and global order book.

Financial highlights

• Q2 2024 total revenue (less transaction-based expenses) was $22.3 million, up 15% sequentially and up to 33% year-over-year.

• Marketplace revenue (less transaction-based expenses) reached $11.7 million, up 103% year-over-year.

• Trading volume rose 62% sequentially to $426.3 million, nearly matching full-year 2023 levels year-to-date.

• Net take rate declined to 2.7% from 3.2% in Q1, due to higher block trades and institutional activity.

• Adjusted EBITDA loss improved to $7.9 million from $13.5 million in Q1 2024 and $24.8 million in Q2 2023.

Outlook and guidance

• Models project break-even Adjusted EBITDA in 2026, with expense reductions expected to deliver $11.3 million in annualized savings, most realized in the second half of 2024 and full impact in 2025.

• Ongoing investment in next-gen platform and European expansion continues within current cost structure.

• Existing liquidity is expected to be sufficient for at least the next twelve months, supporting strategic initiatives.