FRGE - Earnings call transcript Q1 2022 | Forge Global Holdings, Inc.

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Operator

Welcome to Forge’s First Quarter Fiscal 2022. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded and transcribed. I would now like to turn the conference over to Dominic Paschel, Senior Vice President of Forge. Please go ahead.

Dominic Paschel

thank quarter for XXXX and for us Josh, first Forge’s earnings you, you joining all today Thank call.

regarding will Joining Forge’s me at prepared the They your CEO; Rodriques, results, remarks share and Mark end. then today Lee, Forge’s questions are take the quarter Kelly and CFO.

our is will website. Investor days. release webcast available be the discussion page Just IR after results call, being of Relations after available one press today market our on press XX on quarter first is this we the site. today, Forge’s close about conference to release, for our is which financial the a complimentary there’s This issued call announcing presentation live also conclusion of as and a results. of Beginning accompanying hour A replay

which on are cause call, Any During of off outcomes in our of expectations, factors soon statements course our the statements important uncertainty, to in of from included these forward-looking may those that to discuss today’s Form make forward-looking We found website. projections, statements. based our that we actual make and there forecast subject as date. various are and risks current conference XXXX X-K, XQ SEC be filings, in factors our our differ including IR materially could can risk we

adjusted will we evaluating discussing our In that our statements. meaningful be when forward-looking measures, presentation non-GAAP we update otherwise performance. reminder, the to a unless noted, required are As we not are which believe today, company’s measures financial are

also the results. first on data the will discussion release, you these IR should For press website. GAAP the to posted the Today’s is our within on reconciliations XXXX detailed disclosures which contained quarter financial measures and focus refer

always encourage basis. on value annual to performance As Forge’s an we you

by over affected are With I’ll control. that, Kelly. be outside can to turn that unexpected it events, our results quarterly As

Kelly Rodriques

public through who thanking Thank to like process, the have been start you, by met afternoon, good and who we off and with from our Dom, those those us everyone. I’d beginning.

release, press remarks three areas. You’ve main seen will cover my today on the our numbers

our for First, those briefly through I’ll the business, story. new take to Forge you

our expect how quarter heightened and is of highlights; business to market this can results. discuss you timely, with volatility Second, results and first periods I’ll third, our I’ll cover recent and interplay

walk Forge let’s So, through story. the

my broadening just liquidity, journey by the the efficiency. new transparency, alternative in joined saw would to entirely an Forge for XXXX, long-time a that I CEO, as because assets. CEO, access a to private volatile opportunity It The compelling increasing it market global and and times. I stable startup as proposition massive private services the is market all access infrastructure unlock build and experience was a connected as multi-time an times financial in that a opportunity private is investor. market

Meanwhile, in XXXX; historic April in XX, XXXX XX created from down XXXX of per some triple, of And unicorns amid of month. about April’s, ensure even new X.X still in highest companies before taking creation in market number need remain and of minted about growth were these is talents. increasingly in rate XX levels growth are many these hiring firms, in month while capital. due universe April, liquidity companies At while and than they’re infrastructure for that same can investors now seeking $X.X XX value of companies or can’t manage remain Unicorns time, able years, help place quickly retaining Over a longer. expanded. growth And private unprecedented shareholders companies the to shareholders unicorns to longevity shareholders’ when and at their are the private. public competitive needs and almost and X,XXX The the stay private. has companies of have trillion their minted XXXX. to acquired, of services are technology to that growing growing and are substantial from with unicorn of access the past There and value More as private number stayed were employees but were go they last unicorns the the participate above about worth their investment a they unless more per companies and minted periods. volatile technology, building averages benefit

the Now, while the market access and market liquidity, transparency. historically opportunity private was clear, lacked

partners built solutions, to problems built our is scale. network those companies. our At drive effects custody, and significant of at that a Forge, private around we’ve the XXX markets, synergistically traded and and in strategy, we market scale. testament Through business complimentary than private ecosystem including the markets; and traction delivers Our technology Forge company an to works that infrastructure, global data, to solutions more we at access solve solutions,

with across unicorns, and has We capable so than more engine. a more range, and wide trades so XXX,XXX and volume, platform impressively billion have completing investors sizes XX than Forge emerging in working than I We’ve enabled platform. investors countries. such of The investors, transaction more shareholders in an structures. have registered our and many $XX many variety trading on become a accredited

revenue business huge investors, portfolio. gaps visibility source to addressing private providing in the is market to discovery, and adding data high margin, Forge’s a Our price predictable diversified

recurring hold and of portfolio. predictable easy and is revenue business our manage to value assets makes adding custody another Our to source private it

in continue this the or down. credibility platform, up the position market this the whether we technology long-term, scratching have a is today, is market traction Let say, only in lead continues that we’re an market and us exciting expand, me total time lead the and surface market, while at to puts Forge. just great opportunity developing to addressable of to The private a

in and first shed come of This to year-over-year in Forge’s will periods. increase there billion to XXXX, and XXXX rose how But XXXX volatility In in help Forge’s XXXX. in certain sale that, about a million was accounts historical first on which of revenues to quarter first from the before private than we any year-over-year market ago assets cover XXXX $XX.X financial of financial about quarter-to-quarter, to results I’ll I’m XX% $XX during $XX results. quarter the I affects shortly. the revenue business with were some for of compared of were onto $X.X million, under year sorry, X% XX% back custody custodial quarter both quarter offered will the accounts. million explain distinct In first previous billion in up get from more first few platform into quarter from helps quarter. fees that more million of year-over-year in companies to our less now shares on first – the volatility quarter. So, the QX expenses reflecting, highlights and the total transaction-based the Total administration context light in XXXX, Total $X.X million pricing power custody increased quarter $X.X XXXX the $XX.X quarter. There

We make the top traction relationships Wells class. QX, with tier agreement Fargo also In signed private continue to strategic to to and a with through market connect banks. create we Forge and new asset clients partnerships their

about more getting launched investing Forge revenue six-figure also signed revenue data market can quarter, to will total investors Data. Market our and decisions predictable In first help also add SaaS-like This we’re that distribute customer Forge proprietary for new enterprise started. we private and first revenue we the portfolio. for the Private PMU insights intelligent And just stream diversify our make investments, leverages Update own that or strategy. QX, Forge’s During

recognized benefit of of Chairman innings, early XXXX. platform, that finally, in platform. we In our within He’s Herbert among investors Chairman services services seen as serving we’ve platforms Republic we’re the of audiences, his already have our assets. increased using trades appointed are financial adding already helping from executives to financial customers Board top on Executive in industry such those subscribers to in new their resulting to its data are welcome as as us And data before lending product and CEO addition value in reach the in value Jim private still while and this country. the and H. our new for leader. First Directors, to council engagement current is investing data highly our being Bank trading in more to our And the insight James one XXXX, founded excited

Now XXXX like number the XXXX, the and buyers well some XXXX. record back several I’d the provide trading the disrupted second as volumes dislocation initially or footing platform history. also accelerated of it to their on to of the and capital of and Forge regain of half the Trading SPAC first platform, back half XXXX, interest the the swiftly the in more of as in XX% quarters the of as occurred, recovered total after stocks to the half markets revenue on speak. as flowing. record to leading indications volatility, venture of XXXX first with than saw few second half struck But When coming COVID lockdowns, during table, capital months of private levels accelerating, came to IOIs grow to COVID Forge’s IPO from first so Forge first

Forge Now last increased investors year, of we well record stocks, public demand benefited extremely to soon levels the from venture IPO amid from flow. access capital as period be active to as quarters as call record

volatility the in markets environment. created this very has the different quarter However, a

and of private China. effect XXXX sellers of interest a the asks buyers market readjust spreads business occurred. on these half last on the and expectations exacerbated for declines. sudden there trading and volatility time and reaction XXXX month in in and and in reestablished. geopolitical started to and war; sellers rapid COVID of; simply the continued crisis, it quarter, another while both, widen, rising premium par a market with is rapid expectations. the sellers supply additional expected and to the the the when as first impact cross. pressures and and ask experience to price bid is due to with buyers quarter or agree to rates; the slowed Russia-Ukraine and equilibrium fully inflationary Both of buyers discovery recall effect three, equilibrium experienced in one, buyers we of As public and global The Very two, waiting discounts their rising price dislocation in a first held cause When Sellers the chain the first COVID bids be discovery illiquid of expectations conditions in boom current geopolitical price. disruptions for tight takes inflation of our instability economic trifecta when or the in are of XXXX convergence of the to And markets,

efficiency our brings more of Forge price private this as the private price and Over the market, effect they understand reducing important to expect However, time once experience, lag discovery and in transparency, do is volumes thereby the discovery in to to to liquidity, on markets, rise. we begin improve access equilibrium.

when while was IPO problem business, generally illiquidity Forge stability that is solve our exacerbated price are timelines as the also periods created as market, reached. delayed equilibrium to down benefit we in to and returns is Now exit markets, active believe discovery the that

positioned is liquidity demand an to IPO Forge as also well benefit grows. pent-up standstill, for the from

are price headwinds. continued We recalibrating expectations now in of are where right in in between an period the face

the private at to the compete talent. least alternative to price help that window but least on trades we is Forge have markets, stabilize or solutions finds discovery in begin for time happening, expect extended cross equilibrium for will companies more that and At increasing, exit are and is this supply our be believe During they for most private platform. as looking is translate IPO delayed. we timelines, liquidity again as fewer and And trades all the so markets to expect we once company retain should capital to closed

Lee, Now, it to our over I’ll turn Mark CFO.

Mark Lee

Goldman Thanks, here long-time first Management am finance Forge we personally Stanford thrilling Company, Charles to as category. excited including for Sachs, help on companies, call I Schwab, be to steer new as this public company and enable our an help executive the Kelly. a entirely

of dynamics through And delivering opportunity a yet. for the common first private of compelling an access broadest to group company, the time, investors stock. As we’re the the uniquely the Forge to investment in markets growth public

revolutionizing we’re We our feel that technology, we private We opportunity, getting the product are and markets and started. our are through pursuing comprehensive a just portfolio. global massive

of fee in from less quarter came XXXX, quarter. year total XXXX, Forge’s million $XX.X in amount, down of that at placement the expenses the placement record million was total ago down total $XX.X million, quarter First revenue $XX.X from reached Of $XX.X revenues where million. first transaction-based fees

quarter into debuts As and quarter with year volume private noted Kelly of VC companies. previously market of quarter a in year-over-year strong QX March a the triggered extraordinarily XX, was significant last a and XXXX, the from quarter net result of XXXX equilibrium. Transaction an investments dislocation take instability this public $XXX flows overall X.X%. record discovery for ended that remained was market [ph] Average macroeconomic price geopolitical rate constant the from million, XX% for decrease at

we’ve rates individual of million, As attributable compensation to rose of includes of are QX were and the up. one-time custodial to $XXX,XXX administration which acquisition and and in bonuses liabilities rates. institutional and noncash $XX.X was expenses loss power noncash $XX.X catch both Total to versus net positive net This generally growth $XX.X accounts. of million and pricing previously in space increased expenses QX expenses compared And gain block to $X.X changes due GAAP fair indicated share transaction XXXX one-time value the million take $XX.X of mix fluctuations year-over-year change in were in XX% warrant total in fees XXXX. million costs. million reflecting

raised of used to total operations. in EBITDA include quarter. expense quarter, the were same we measure, an In a important activities and compared of As detailed million Cash details. EBITDA operating the period comparable of cash the million EBITDA of to QX total to at closing operating cash March that registered due EBITDA of equivalent, Corporation. this million $XXX.X SEC million quarter an $XX.X $XXX.X the included Net combination Forge in successful than first million net annual results. Adjusted $XX.X Cash, unique $XX.X press ago, mind perspective the now cash fortified this further for $XX.X activities a the adjusted out bonus of announced in previously both in adjusted from on cash operating quarter. measure totaled ago. our and million Keep flow in by of original cash from reporting, compensation approximately that from $XX.X loss release And when listing year the at in on gross hand NYSE, bonuses. seasonality was cash by We cash reconciliation the $X million restricted the our adjusted of the Motive transaction cash this was one-time the higher of million quarter, that to for recently million. ago in $X.X compensation million is pay year period, slightly Capital year the compared is items proceeds quarter, of to also $XX.X most Through end filings a a used includes for the we first GAAP million. the related the $X.X gain

guidance. to now Turning

of prior guidance Forge Given combination revenue XXXX completion outlook the time. in neither provided present reaffirmed previously to the full will February uncertain and this year conditions, market point volatility XXXX of in any provide the the nor business at

there our saw are all-time record opportunity to future. Inevitably, XXXX, stabilize; practice growth half and we guidance continue resume the markets normalize huge expect to to will comps in our Forge levels relative to the as tough but that front our in we to determine first of to change forward us. monitor in evaluate whether from

While and environment market company. good uncertainty volatility, and capital are growth actively managing building be this focus of our high through maintaining managing investments we on while to the our stewards and of costs

technology, infrastructure public and sales in company invest to continue support our to growth. We marketing, and

bear decelerate count. our cost revenue. ended percentage head with our quarter and investments in expect scale total the we We XXX As a fruit, of as to we

people, our appropriate to Our at employee in continue pace. base invest most important our asset an we and expand will is and

our once that financial a adjusted comprehensive the goal believe of XX% of model, profitability growth sustained and to revenue lead long-term flywheel remains time. and XX% effect organic stabilize, over XX% the due at to XX% platform, market compounded annually margins EBITDA to Forge Looking should to we

with that, back Kelly. call hand let me the So to

Kelly Rodriques

Thank you, up end Mark. I want I with. started to something

a long-term vision. have We

it market does our confident growth. on we’re volatile times is to our ever and clear as ability our private in stable as physicians we’ve The remains and been today and as times. build accelerated, opportunity market as Our market in in

ahead, sales volume driving a on accelerating programs, side to and the vectors, global look we focused number of our volume we base addition through As through marketing spend, footprint and company and expanding core through are on through increased institutional supply buy driving growth ramping business, in client Data our expanding scaling partnerships, liquidity internationally. Forge strategic side up

be class, take that’s by work distracted of in for today’s and volatility you invest expect long the vision as up this. If We quarters enabling to but temporary market is Meanwhile, from we’re the down call, asset one away it ago positioned down. should because well we one. term once course business to and the and a a par heavy new message are long continue whether something accepted not up is our volatility subsides, to or we are benefit the going can

to Our build global a in to lead continues company intention market. is this that big

and the on well you. for future. capitalized are vision focused executing Thank on our We

Dominic Paschel

Awesome operator. Can questions please? you open to

Operator

first Instructions] Repetto Rich Sandler. question the line Your [Operator with of comes Piper from

open. Your is line

Rich Repetto

you, are or know, if is, there’s markets what meant, do are earlier expect with markets? are IPO IPO the that saying the line you would Mark. in you recession the perform you follow in but sure Yes. PDE I the early of guess COVID discovery Good question the do and from how evening, on the And the any XXXX, is example historical guess, Kelly recovery the, Kelly up to I and – guess to background the first to outperform you you there your, recessionary gave I wasn’t that period, than and equilibrium, a price better how I goes but you

Kelly Rodriques

first you [ph] lot you going part. second repeat break of Actually, to part, mind there’s have the would the repeating, I’m too?

Rich Repetto

you in would shorter do to that. How and recessionary get just do me let first part? a a briefer, expect the be I Yes, environment

Kelly Rodriques

Okay.

that that first of And until in this are the equilibrium, we’re sellers actual talked go market fundamental sellers to is think So pointing all, the we’ve expecting terms is meet. some during, price price to I that in to discovery this haven’t that about this say buyers the satisfy one that the predict. I being on buyers hard hit of middle the we to in, What is It’s And I where is, demand is liquidity we’re the would period period. we’re equilibrium, and us. to capitulated I taken the with reasons that period, feature being period in not what period position discounts for we answer, once discovery today. taken expect we’ve But of do That’s of further guidance. that met. pent-up guess is same there

And this actually, we doing. with, market in to we relationship the definitely then I believe that’s indicate be say lasts, So, now, line counter could rich saw IPO I some extended settles to periods performance over most market, we like, point did one or IPO believe saw Forge because the extends that period price once markets, are trading but perform how during an have comments our if of you the look as understand the we meant from just trade And we that see period benefit and I consecutive think my all breaking companies of about for we discovery record will down. once we four time, And down exciting on IPO depending exiting even in quarters it’s this major difficulty that long talk a that time, last of of is last outperforming point price on in right we equilibrium environment we times, companies how well will equilibrium to exiting, with I’d when if I that been market? will should get environment, middle this dislocation troubling. think, met. IPO want part were didn’t like a viable a of as at as we’re across significant extended discovery is, this in some year, we periods that in year well has

Rich Repetto

one just in quick first you said there was distinct more thought, shares And Okay. companies offering very quarter. the private

discovery I that like a any is it that’s think metric was have that you of then or out sort there get, price don’t this equilibrium? where record is, brings I guess,

Kelly Rodriques

platform, Yes. will whether put want to to out. there first of that We quarter, history but companies we a been going have a debated yes. QX. company I the in don’t number saw were never more In the the not in we put or out, that verify distinct number the We on

record. that was a So

Rich Repetto

Okay. Thanks for the Thank envelope. you.

Kelly Rodriques

go can Appreciate you, Devin, please? we Rich. to Thank Josh, it.

Operator

line Certainly from your next comes of Devin Securities. question with Ryan JMP

is line Your open.

Devin Ryan

Kelly, How Hey, are you great. Mark. guys? Good afternoon,

Kelly Rodriques

Great.

Mark Lee

Devin Great,

Devin Ryan

up, follow I line I’ve questioning. Well guess Rich’s of on Good.

in IPO dynamics think your market the appreciate, we that of take that in some we an going. of because there, of transactions just I’m do activity, some equilibrium, time point to lags kind hit curious clearly to obviously and, kind in it’ll about So, once right just kind the get now transaction standstill, we’re, words, of get after of

IPO degree, described kind also of being kind him of then slower, kind outside, market curious we’re there’s then, but then line another backdrop market really market timeframe to as is the looking scenario firm. between and normal the obviously, transactions that to was stabilizing think a questioning, backdrop, compelling but some preferred of and you same of a I revenues the to market be, coming So, if IPOs And on realized. are hot nice I’m from just there could where

you of do maybe the question? of other is So part one prefer the the second

Kelly Rodriques

start you don’t Why part? first with the

Mark Lee

longer T aware. public stock, you typically do companies of placements, are trading is Forge is this settle mean the markets. what here, of is Mark I and the transact here. as Devin, buyers think your to the process theory I trades than related are a what And lag. sellers that we’ve we’re settlement. These as It process question mean right? These doing private helping talked I not doing, private plus and [ph] first before, So and typically kind two,

time close match, And transaction. settle so to extended there a an and is

at the putting markets, is key happening and seeing fine the your Buyers it’s buyers back right. of and has record think ready Forge public in and what indicated, than interest what markets, selling is, you’re we’re come sellers. kind we’re what’s to part I that’s question Kelly their of happening as end what of broader different when of no simply seeing really kind thing levels matter saying, However, high, in in to a of high well. of right? markets the the very the are same that’s the And are And

that of takes trades that happens, when expect. So than that’s it is, and we in of company that in as when question average markets. we’ll more resume be the match volume And public able private to you’re levels transaction there normalized kind the indicated the time,

And longer so, time. there is a lead

Kelly Rodriques

don’t take second real the I Devin one, quick. Why

trying periods think right. up benefiting all slower more back really we’re and sell this in to and was think the look period also like create as only XXXX down positioned But And stopping going the market the of in prefer I been benefit price we from I into from dislocation us of I price door of people that for now we think are is discovery. exchanges what or visibility volumes markets rushing when to discoveries thing we’ve observant activity. public there

market we and to same well. But of real as the are point sellers reasonable get buyers IPO have do point on should that sellers sort this we we are in of the was in to standstill, well. of we’re And saying And period should terms in say, in where that past pricing. the you if then that’s of So and buyers relatively we’re sort between now. the and from pricing, terms that of once be that able to page, benefit okay,

Mark Lee

like Devin, it Hey, at a It while nascent is an our back. without when excitement you’ve I’d few IPO Day of us strong IPO we’re but metrics, mean, clearly strong more a very to this extra creating in our wind about and mark add I creates in again, right, and seen stage does kind these comments. give talked in this a even of there’s a at evolution presentation, companies, segment. market, we’ve as private Analyst in market,

were the fraction of the a XXX very have we in traded nearly in counterparties on unique registered unicorn of universe. our platform. the we of you’ve companies some So, that’s XXXX. We only XXX,XXX created stats XX% seen small with XXXX users And that X,XXX

our mentioned, improve So, add to the build expand these and reach. these just and marketing to new excited opportunities numbers technology, sales Kelly our and of as are to opportunities products mean, about. to increase build and our and we’re I all global extremely

regardless period, of a of whether, think Forge IPO just of kind in kind market, difficult hit there’s the a whether to strong so And we regardless in of opportunity we recessionary result of there’s growth should years massive come. that

Devin Ryan

follow That’s segue, into my up a guess, question. nice great. Okay, I

quarter and these of signed six-figure customer in Just on first much your noted appreciate, Forge over I the you that some that could legs bigger time. are and of Data platform know guys the that the stool you in be, release areas the press the first

other you product around insights to can So, about in early has other into feedback or that trajectory the I us the curious, kind the any sense of here? guess, from I’m how and if been think the just pipeline what then of give product

Kelly Rodriques

Yes.

a you extended data is enterprise announcement let says the that that take in made it to the buyer believe is market, sense the find we in fit think market me just access validates out encouraging. market pretty product goes becomes this Kelly, all things to increases. takes prices to think seller. see right level company volume that both this drives a I’d put a the this to for more $XX,XXX And now. entry data decrease because it, before on, scale it electronic get they I that is about participating book, about buyer and year. a good So more which a the we, product that We And And hard IOI we like, one. of value it and this or the terms transaction in we is get execution. But active period, large beta this more and to as seeing and it. say bids you’re say a product, that one just product the it I the sell come what’s market, point realistic in visibility, had And for in the PDE if of have data figures to of point, this the came particularly this get of in gets are pricing valuable pretty got I’d an you’re wouldn’t you’re this base noteworthy time the interested about investors for We’ve of had what order of what that the before more the period if as that six done, to at you, in look fit what’s full market we’re $XX,XXX about at QX us there think whether as

us data. indicator to it’s comprehensive institution that encouraging for So that, financial leading very want a kind the large that access of would

So more to come.

Devin Ryan

in that any puts started and but a with kind I’m one can run characterization the then slow you other if there beginning the get through the sense are sense backdrop, If backdrop way quarter? is can how about the the rate Is sure not into year or kind much of March. share end could my there activity Terrific. assuming of guys activity. to the more I’m of kind quick I the here fair takes second Is of think on those. through just squeeze provide, one a and that Yes. persisted of any in to of, of you environment’s just

Mark Lee

macroeconomic point impacted Kelly our of combination think really the global this factors that QX. And made the those described in of trifecta Devin, part Yes. our kind that mean, in Mark. different three is the started to I we latter quarter. of the the also impact business I factors business

as earlier, to volatility and of beyond we’ve the market, said we’re guidance kind the that, be providing uncertainty Beyond going not that. given of

Devin Ryan

Yes.

guys. so Thanks understand. Completely questions, for much Okay. taking my

Kelly Rodriques

Devin. you, Thank

Dominic Paschel

Ken, you can in? we patch

Operator

next Worthington JPMorgan. Your with from question Ken is

line is Your open.

Ken Worthington

the thank you taking questions. for Hi,

call in big Q&A. discovery a made you’ve throughout deal [ph] the So pretty about the gap price the

gap XX% like that suggest growth down It me XX% emerging gap? the gap is right? or the would this we we’re XX%. know is how bigger it if or going, helpful down away a overcome so. Because kind be need this public is goes is gets what out to So, trying to of is big figure when and year looks Or about it here. markets business gap It back Is to to are smaller?

Kelly Rodriques

Ken So, public of but saw first And that reported while the QX, on were answer XX% lag, the public overall in doesn’t decrease. at overall, decrease, I’m we the are it moment, XX% PMU but level sorry, still at and QX, the of that ended as it pricing the to we QX like maybe the markets. a markets we And we’re bit X% out in if of you look published at we we not the answer the decrease us have not something the down think so gap we way, does disrupt you decrease as I reported state around representing across a the our to say it’s have pricing far, of data what do we’re ended coming so started question at go QX, some of go, in PMU how looking and a little but I’d that XX% QX. platform. much we’ve further when in comfortable on this board makes

Mark Lee

about would this that brown versus seeking are you PMU to Mark. do expecting. you I refer Ken buyers is the the last is discounts and discounts the Hey, There sellers the it. specific information are get that probably to there

of that’s see release publication PMU, ongoing our So another you’ll there tomorrow. is, an and

Ken Worthington

So, of forward And you levels, that probably is was data. you to said give times But, at want out didn’t my to the don’t then, grow said is participation, you it record guess that hang misunderstanding isn’t your these that. a corporate looking going time, couple definition to out investments. okay, this me good over only by buyers

them You out. don’t hang

So out. have once they buy, to to they’re liquidity going of kind sell

time? that of just over go up doesn’t number So sort only

Kelly Rodriques

does. or Mark last unicorn rates the Because at out, five pointed it phenomenal for growing hope numbers as the and years. four we have Well, been are

close time. as here to start So, one market number private look we is on got are long longer our as unicorn count to X,XXX. idea term as through expanded will as private companies And has say leaders, was when the of tailwinds at we’ve XXX. one the seen, we XXXX I the staying longer platform to move I’d private that appear in the that

And employees programs so at yes, right, have realized who some that up the share. possibly continue are their for, their of companies into their not it tracking awareness shareholders or we to the go they to employees liquidate carefully and because do expect valuable us have and haven’t may can adoption to look conclusion that but and of liquidity that that indicate come we’re it does for private

markets new continue. continuing I So, up are And of down, just are the that really a show evolving market on think expect we it’s an is companies platform. to the the to and measure while this that indication

you a world, to tried positive the Another to one set so five appear concentration platform more and of driving for all to see diverse period say that say, time a our always unicorns biggest the us, on more the go I’d of in a thing more and to we add in I’d revenue. ahead. Mark, it’s and measure indication I’d over want diverse we’ve quarter. had anything, say, not names if that in three names participants And

that talk follow we move about through to continue we’ll So, time. as and it

Mark Lee

Ken Hey, is Mark. this

point me Let another add on of top Kelly’s.

right, private people in in that we, of access. the think past in companies a of normal the situation getting lot as typical and market we’ve environment, in I interested are is discussed there So, that a investing kind

our as we selling in of terms its on in meet is So in than IOIs IOIs a now of and of number being the in environment, more larger a trades by the to it’s on the offers on match typically Kelly the on typically right, fact, order this and put have IOIs in represented, locate liquidity our then to companies that’s the ever as flipped head. the is side. the as find sell And than to and in platform, expect complete order you side buy had been. represented past. sales And more close our we side process And have by then IOIs, interest would transaction. indicated, more buyer, on those And course, than we’ve ever

historically we’ve of only And sellers but traded part universe, so liquidity. more as and is this unicorn the in we’ve more XX% what of this about, talked where environment seeking are

And as Now happening, of to kind these price environment. a expand the kind the we bring current can right? particularly buy we buyers of wider and happen, the we then as in breadth soon it’s inventory what in of the And a it’s trades, the can expecting consummate offer and to vindication that, stabilize, think so and I business. we’re can can our buyers,

Ken Worthington

great. Okay,

Kelly Rodriques

Thank you, Ken.

Ken Worthington

go – ahead. just then And

Kelly Rodriques

ahead. Go

Ken Worthington

Then lastly, where you do control. have

expenses. on asked Devin think I

would increase I that think your spending that maybe that pace comments of of continue mentioned conditions. but you your you on to but stewards rise, capital, the depending of pace guys good sort correctly? kind will costs lessen, of and I be market on will of Did interpret investment

Mark Lee

That’s right, Ken. exactly Yes.

on expand that. Let

importance heard, stewards our top top our you XXXX. the But advancing I capital vision, us to EBITDA margins priority by been So, being as entrusted of that priority. it’s Forge company, let also noting as appreciate remains in by Growing the our generating good adjusting positive we always the of our start and investors. said, started

to So slightly growth been some adjusted in to towards cash investment positive EBITDA We managing our do the target company at breakeven goal with has to costs. negative believe slightly all earned. long not spends

to sheet, I that balance debut us flexibility. had the does that give indicated as public fortified want recent And earlier the call. greater is in So, I do our add

company. balance this during appropriately but this and uncertain to for on while So time time, invest trying focus finding able be it’s is, volatile judiciously us, now right the to a still to the growing

a but your kind with agreeing of kind characterization. yes, I’m description additional of in lot of put So I’ve there,

Ken Worthington

Okay, good.

me, agreeing I’m agreeing and You’re with you. with

We’re place. all good in a

thank So you much. very

Kelly Rodriques

Ken. Thank you,

Dominic Paschel

please. Okay, next Josh,

Operator

Certainly question with from your Alex comes UBS. next Cram

Your line is open.

Alex Cram

evening, back little have were of to and bit I that a Yes. hope Hey, get to couple may the maybe good before specific. just everyone. asked to more come a questions

of help on made two or comment understand the the beginning may Can data the us how So, was for. quarters you lower where that bit a the to relative than want four March years, but maybe of activity have and last levels give this – the not business like we rest maybe to that you little February, guess, by you first more, the quarter. the the seen of January over saying and I we’ve any of running, being or

of year. seeing second, then as beginning a bit little Any figure March again, sense you’re a to So, color so it the this question and we’re we shaping up? characterize helpful obviously the or what would have additional really all the quarter. out environment how far Maybe is trying context of of obviously in the same on be

Mark Lee

you of let way I me we us that nature what Yes, that, and go said going think and, make so get think details of our kind we is greater guidance, for to know the we think the doesn’t back couple you inappropriate the not quarters, the and if in a provide all but and of of given that But in think, if market about that things November, this Look point to to QX. last last then kind XX% NASDAQ February. middle all Alex, of we’re another Mark. into believe in that November the We then the middle sense. It’s it in of business, time, about its back middle to declines points declined hit February after it now declined February, yet to progressed XX%. up of the And February. Friday through that high it’s middle high of the to then time the

started Ukraine February and on XX. the Russia war the addition, In

trying the additional to kind the know, being But discussed was Alex are marketplace. we talk this you accelerate So, other expectations that I started know there I’m already but impact trifecta, in context factors these into when inflationary kind the these that provide of later course of an of already clearly started from out, all in quarter. the to terms out there of things business and and about really

So, prepared on answer comment as I know not question. about that’s to to much as That’s kind at your point. this direct a of we’re

Alex Cram

is also expense million adjusted on a math EBITDA EBITDA, detailed sales quarter. that expenses, question another give with If more can the you think in just one I up you is some follow minus my I adjusted on $XX basically outlook. which enough. correctly, Fair Maybe think the

the of some in lowest to this the that number compare quarters, I last year. was prior actually when So, expense the

lot $XX spent I also more the in a half. think million, was back but QX

we for that cost So, up to actually of kind maybe my corporate little back rate thinking kind that in in the you you. importantly of have about sort a be we rate, are want Or forward? in out, is Thank that going with mind not a run forward, question right anything how of that now? basis pulled items as thinking flexing down should you any look then that about budgeting run run million more is, you of we bit, and $XX should company the this call rate year, remainder or distinct be on maybe quarterly

Mark Lee

people. going is Well, roughly increase to what you, from XXX I we that, would XXXX headcount did tell XXX Alex, in significantly our people

is a where perhaps and compensate is heads, relative team we that compensation to in expect to are is that our filing, We add have pace do our judicious We bonus performance. in continue although our more to this at variable costs there structure. cost there

growth. so structure, on focus variable elements continue have our do in cost to cost hire but we we do to expect And to to order

Alex Cram

And just in quick here. helpful. that’s I squeeze Okay, one one,

Can and a In starting. share should what remind because kind and has quarter already, us the out the should going maybe of was here fully that semi-public share you given be with this been, the you using number’s we as obviously counts, count dilutive price second terms there of stock just quarter. where be forward, view

know we here. So, you. Thank good starting point the

Mark Lee

count we’re is being where in our I loss only share now EPS a well for that using something reporting. Alex, position think that for basic the Hey

numbers, fully soon. think additional As that’s that will diluted far point we I as information a provide the at something

Alex Cram

up follow always Appreciated. can off line. We Okay.

Mark Lee

Yes.

and of Alex, aware probably something, out you’re point this. Let

– for that through for course you then of on last of Of weighted the And course, majority The is well in conversion average, Forge. share days calculate for Forge’s the preferred include the the of based shares to right? QX, then additional as the the the our first XXXX the standalone. nine the these came you share recall as count the quarter quarter, stock, count combination, that first common business of

factored we’ll probably the diluted provide that. additional I – then information ahead go in near calculation. your that’s just and to into So, employee calculation remind And you the on wanted future. of I

Alex Cram

right. All

Sounds great. that. Thanks for

Dominic Paschel

Thank we from you, Alex. We’ll Owen. take our If can last question.

Operator

Owen from comes Lau with Oppenheimer. question next your Certainly

Your line open. is

Owen Lau

Good for thank evening you and taking questions. my

to lower talk your that the be more to to attract platform. find you the about anything attract than else And or expanding that you’re for know, sellers make you you. about macro willingness any buy don’t back how Could touch buyers. please side are you Going efforts companies the outreach offset, factors, great? environment on your private Mark in improvement more point, can Thank the there valuation, can more bias to this buyers than ways you if would other also the can on such is of I as,

Kelly Rodriques

you, Okay. Owen. thank Yes.

information can the decision think to now I about for market what’s that of the of are some the interesting lot price companies places world to being think we were a deny I the having provide more this make attracting be one different in that So, comments fundamental don’t And and These and buyers can and drive provide most for before? are of people staying come discovery. about more in in like One make, should And in would on is are better? about that them? paying home conditions companies longer. right this tried that that willing that created, the and transparency we I our points anybody pricing. the a in information questions What really couple our private sell what exciting and are prepared help is, platform we

Is part, cut about if I’m so we’re part got that more of of the the this but the discovery And to And what confidence off of made information have, are as more that’s available that how to sure into there a price can could not mind really space, is volatile? my comment that’s more really what the help. So, top reason say the the markets and I paying I’d data that effect and PDD price. is price equilibrium. we about. the all the fair this they’re we that’s a what to during lag excited decreasing mark I there about fair is around buyers jumps coming they probably

Mark Lee

for is Thanks Hey, Owen this thoughtful the question. Mark.

these with these to happening, that investment it’s public innovative would they’re we more growing private I Forge, the the investors most think, fastest our Forge most company, in Kelly’s I and first investors, and about opportunity there I that for debut, build. the with thing looking were believe many raising companies, that and among are of more the also that and the you going to unicorn innovative, add guys didn’t alpha. investors, of that is buying what such to There think were there’s for are I advantage that creating still are a environment said, great our familiar companies and that have they’re time. there a out particularly institutional wow, trying companies, be powder opportunity. were typical the plenty this know not are talking are many When learning was to we And large even pipe dry to invest take comment

this. there’s a really think need for I big

learning been learning the think opportunity the of a about access institutions answer that work we is directly. I part to that private to about the not So, there’s really lot that yet of that your believe think to And we I companies able have with question. are business,

Dominic Paschel

Josh, you, thank you, Thank Awesome. Owen.

wanted say thing. Kelly think one to last I

Kelly Rodriques

our Yes. on I just we’re be and excited really is to wanted jumping to here. thank this for everybody one, first

everybody just going we a so And and execute attention to to market. for to we’re and really chase continue exciting wanted thank their

Dominic Paschel

Appreciate you. Thank quarter. we’ll over next guys you, you us Thank engage joining you guys of today, and Josh. with the all

Operator

conference today’s much for very you concludes call. joining This Thank us.

You may now disconnect.

Forge Global (FRGE) 17 May 222022 Q1 Earnings call transcript