Forge Global Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.
For Q3 2024, total revenues reached $19.2 million, a decrease of 14% from $22.3 million in Q2 2024, but an increase from $18.6 million in Q3 2023. Marketplace revenues, which include placement fees and subscription fees, totaled $8.7 million for Q3 2024, down 25% from $11.7 million in the previous quarter, yet up 64% year-over-year from $7.3 million. For the nine months ended September 30, 2024, total revenues were $60.7 million, a 20% increase from $50.8 million in the same period of 2023.
Despite the revenue growth, Forge reported a net loss of $18.8 million for Q3 2024, slightly improved from a net loss of $19.0 million in Q3 2023. The net loss for the nine months ended September 30, 2024, was $51.9 million, a significant reduction from $65.3 million in the prior year. The operating loss for Q3 2024 was $20.9 million, compared to $21.5 million in Q3 2023.
The company’s cash and cash equivalents decreased to $114.5 million as of September 30, 2024, down from $144.7 million at the end of 2023. Total current assets also fell to $129.4 million from $163.1 million over the same period. The accumulated deficit increased to $331.3 million from $280.6 million at the end of 2023.
In terms of operational changes, Forge has focused on expanding its customer relationships and investing in platform capabilities, regulatory compliance, and product innovation. The company executed 680,831 trades in Q3 2024, an 18% decrease from the previous quarter, but a 795.6% increase year-over-year. The trading volume for the quarter was $338.1 million, down 21% from Q2 2024.
Forge's total custodial accounts increased by 3% quarter-over-quarter and 13% year-over-year, reaching 2,281,976 accounts. Assets under custody remained stable at $16.6 billion.
The company continues to face challenges in the macroeconomic environment, including interest rates and market volatility, which influence investor behavior and overall revenue. Future financing may be required to support growth and operational needs, as the company anticipates that existing cash will suffice for at least the next twelve months.
About Forge Global Holdings, Inc.
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