StartEngine Crowdfunding, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in revenue, with total revenues for the three months reaching $9.6 million, a 68% increase from $5.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $31.2 million, up 99% from $15.7 million in the prior year. This growth was primarily driven by the introduction of StartEngine Private, which generated $16.5 million from 30 offerings, alongside increases in Regulation A commissions and Venture Club revenue.
Despite the revenue growth, StartEngine reported increased operating losses. The operating loss for Q3 2024 was $(6.8 million), compared to $(4.4 million) in Q3 2023, reflecting a loss increase of $2.4 million. For the nine-month period, the operating loss rose to $(13.8 million) from $(10.6 million) in the previous year. Total operating expenses for Q3 2024 were $11.0 million, a 30% increase from $8.4 million in Q3 2023, driven by higher general and administrative costs, sales and marketing expenses, and research and development costs.
The company’s net loss for Q3 2024 was $(6.8 million), up from $(4.4 million) in Q3 2023. For the nine months, the net loss attributable to stockholders was $(13.8 million), compared to $(10.6 million) in the same period last year. Cash and cash equivalents decreased to $8.2 million as of September 30, 2024, down from $12.7 million at the end of 2023, primarily due to increased operational expenses.
Strategically, StartEngine completed the acquisition of SeedInvest's assets in May 2023, which included a customer list and intellectual property, valued at $24 million. This acquisition has contributed to the company's growth but also increased amortization expenses. The company has also initiated a new Regulation A offering on November 1, 2024, aiming to raise up to $16 million.
Overall, while StartEngine has made strides in revenue generation, it continues to face challenges with rising operational costs and net losses, necessitating careful management of its financial resources moving forward.
About STARTENGINE CROWDFUNDING, INC.
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