Garden Stage (GSIW) H2 2024 earnings summary

Executive summary

• Revenue for FY2024 was $1.4M, down 56.8% from $3.3M in FY2023, mainly due to sharp declines in underwriting, placement, and brokerage commissions, partially offset by new advisory fee income. Net loss widened to $4.6M from $0.2M in FY2023, driven by lower revenues and higher expenses, including $1.9M in share-based compensation and increased marketing and IT costs. The company completed its IPO in December 2023, raising $11.5M gross proceeds and listing on Nasdaq under the ticker GSIW.

Financial highlights

• FY2024 revenue: $1.4M (down 56.8% YoY); net loss: $4.6M (vs. $0.2M loss in FY2023).

• Advisory fees contributed 29.9% of FY2024 revenue, a new income stream.

• Underwriting and placement income fell 90.3% to $0.15M; brokerage commissions dropped 55.8% to $0.4M.

• Compensation and benefits rose 56.3% to $3.3M, mainly due to share-based compensation.

• Cash and equivalents at March 31, 2024: $8.9M; regulatory capital well above requirements.

Outlook and guidance

• Plans to grow by strengthening advisory, brokerage, underwriting, and placement services, and expanding asset management and margin financing.

• Focus on enhancing IT infrastructure, brand visibility, and operational efficiency.

• Management expects current cash and anticipated cash flows to cover needs for at least 12 months.