Earnings call transcript Q2 2023

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Operator

Good afternoon. My name is Emma and I will be your conference operator today. At this time, I would like to welcome everyone to the Forge Global Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Thank you.

Dominic Paschel, you may begin your conference.

Dominic Paschel

thank quarter for XXXX and for us Emma second Forge's earnings you, you joining all today Thank call.

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

replay. conference will will call conclusion is be accompanying IR the complementary we available being there is about PDF webcast a results. be our also of live A for release market page to and XX press X supplemental Forge's which announcing days Beginning IR is release call, the after our investor on This Just the issued after hour second forge.com. close an of available discussion this results today, press quarter financial of today on to XXXX page.

During on came based uncertainties today's we forward-looking risks to this current ago. as may factors Any outcomes various expectations, make quarterly the forward-looking in call, a to conference in from of make included important projections that these those discuss XX-Q We minutes statements. there are SEC actual statements subject date. could Form which on filings, and few statements we are and including our cause forecasts and report differ our materially that out factors

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

the within is should data on GAAP you to refer the also IR our measures release contained and press disclosures detailed page. which these posted on For financial reconciliations,

will as Today's quarter second posted on supplemental have XXXX. the discussion same our I page, on information of quarter Additionally, the second mentioned. focus we

annual results encourage quarterly always, a evaluate of picture performance. to and for full Forge's both the As we you

to turn I'll that, over it Kelly. With

Kelly Rodrigues

everybody, and for Dom you, Thank joining.

into a and about give a But class then performing. in like market QX close financials in is and do. we're of to from quick how highlights insight you past here deeper Mark our Just some of dive the trying asset We'll the the just reminder will quarters, Forge's why into some what private first, quarter. we'll talk is with

an work are to effectively disruptive our And regular They products take before with made companies is that cure helping the to of intelligence inevitable changing and these These solving for time rockets all most heads private They financial do create. from now, Thousands to that and of want growth or the their portions are us. artificial of to are dedicate prevent creating of air. portfolios. right total we want market There technologies way They performance. opportunity the disease are down of just and clamoring technology the participate technologies challenging the They for and and high access. exposure potential aren't some how new world-changing problems. to food that tomorrow, networks companies. satellite investors Mars wholly and jobs. want Technologies efficiently world's us track in

created to center private at illiquid the only and all bring inefficient opaque, those market was the market. to Forge technology of and transform to disruptive bear, our ones

new the insights market difficult in access that data, we've over them progress past information term. challenging investors, helping forward. this made new conditions our reentry are plan market asset for through the including to the Through and time even their And to cycle, doing class long work have and push institutions

the private possible the which at built. will new of to most which the of tracks and insights Index worked be innovations ecosystem. products which blueprint transparency. new liquid and Forge on the The new market names performance Forge are position Market the is market in is We've private Private XX providing the It financial center on

market With it data, to new expertise to and from network, as the existing and the private of capture wholly continues pent-up audiences continues demand the allow technology, reset. market to us activity will more and expand as

that some the total get time revenue and to to the second benefited for $XX.X of future, we let's while private Placement $X.X QX business more the cannot that, QX. before to business. QX, conclusions. as of transaction-based positive absolute first need X% expenses to And indicator less quarters, Forge's troughed. in market from for improving million may $XX.X have this In XX% This that highlights markets million trend million into quarter. financial drawing less X up in revenue, was was improved view from see fee We'll we Forge compared in predict with the our QX. So up to transaction-based due the slightly markets conditions a expenses a

than cost in a last growth and million this quarter. prior including his will indicator management Another the section. the cost rise loss quarter's in cutting XXXX. reflects $XX for which talk we're reiterating volume lowering And increased and our our in intentional disciplined quarters. million extended of Forge's QX and This QX, third This in more encouraging in a better into cost EBITDA million, burn and the Mark enacted strategy, 'XX commitment loss $XX.X deliberate for to about $XX.X last was to in adjusted discipline transaction second XX% quarter to narrowed year. million $XXX.X revenue loss has

straight continued environment. again in Custody higher benefiting administration rate the to to interest million QX, quarter fees from for $XX rise the seventh

our a helps In added Russell quarter, business addition to index's highlights as the leader. financial XXXX the the for to reconstitution part of category to Forge our as validate was annual which

investors, new market. shed light to institutional-grade new July, that Forge advanced believe outlook. This institutional private and market we're and our provide most on level market the data understand investment to engagement private drive that to demonstrates effort help bringing deeper quarterly go transparency this investors is new showcases of in performance. we deeper the in into from It we value the and franchise to a the research Forge launched more designed ongoing content Finally, contains

me With that, to Mark. let it over turn

Mark Lee

Thank last was total quarter. fee million fee totaled X% expenses Total $X.X QX, reached XX% increase from expenses largely less revenue Forge's placement million, last $XX.X Kelly. million you, quarter. driven less from revenue. by This placement up revenues, $XX.X In up transaction-based $X.X transaction-based million,

X% XX% to averages. which million the $XX Transaction $XXX.X in while QX, quarter increased QX quarter volume to million, administration our than net historical slightly Total from up for fees last XX% from million X.X% QX year-over-year. higher to and up last increased our rate X.X% overall in quarter custodial $XX.X rose in take is

through and our uncertain to continues business to stability periods. balance custodial Our provide macroeconomic streams, revenue particularly

$XXX and our end We QX, Fed of administration funds more of $XXX believe fees. was from the for rate million This decrease cash driven cash balances by was the increase at the totaled million decline down by custodial than end offset yield. sorting search this at primarily and in cash Forge's last quarter. the

company Total totaled $X flat QX, from accounts essentially million last quarter. in

Assets start reducing quarter, the of XXX, commitment were were burn from custody reduction at to Total under the $XX.X of actions of further XXX the X%. headcount year. the $XX.X versus last billion Kelly headcount third at an end the bringing cost increase to QX end was billion quarter, our as highlighted June. such, at of down rate. down current taken XXX in our And

loss last adjusted price. $XX from in $XX.X EBITDA a last $XX.X by $X.X of quarter rising includes driven the million going has million million quarter. improved an a million This the Second increase noncash change cost fair value loss and in in share liabilities driven our share-based QX. net compared million In second quarter, expense QX warrant increase million increased $XX.X revenues of improved in This of compensation million tight to $X.X quarter, controls. to $XX.X to compared and to due an to to loss

last $XX.X activities cash net quarter. used the was in quarter. compared An used million $XX.X improvement Net operating of operating activities cash in in to million

fiscal As will cash half the include timing-driven of recur of our the payment not in a and first reminder, premiums of our insurance corporate as payout which of half annual such annual bonuses second flows, XXXX. years

days our of corporate used at compute shares diluted including shares. $XXX.X as outstanding our of ended average XXX fully count and June quarter. share $XXX.X housekeeping number compared cash net million weighted equivalents, the in shares million term of million deposits Our to quarter and a approximately of XX cash XX XXX loss perspective, From basic excess million last to was

weighted XXX we million purposes. for estimate EPS basic average common modeling For QX, shares

lower Historically, an in there see is inherent Wall volumes which summer you to third across quarter tends to Street. what similar result seasonality trading

quarter, have we to indicator that However, is this based will the historic believe volume visibility at slightly exceed that equal third in relative a positive or which of quarter we QX the trends. point on

markets and So monitor the in structure. cost state summary, our to continue manage actively of the we

cash of in our Forge our being to remains stewards and use the capital. of lowering overall committed XXXX to

private to hand Kelly overview turn over market before questions. brief I'll we back it it a for for

Kelly Rodrigues

Mark. Thank you. you, Thank

to we'll be growth. lean on continue our that focused Meanwhile, encouraged the are We're Mark remain as As lower monitor thoughtful commitment reduce we our and there measures to may and taken cash on have said, to intentional reasons use to feel market track warming. costs. costs with

of For example, transacted up we closed in than issues in by quarter-over-quarter. in was and the XX% we QX QX XX% number more trades

recent their growth XX% prices believe data revaluation last below that second about era market Looking reset, rounds round the working call their the trading last our and to and pressuring their this showing is companies the overall that we market recent reset, mass Forge's valuations to of closer we at our In at In most profitability. companies imply the rounds. today reported is X% for rounds. market update, platform what valuations second is median to most the lean funding a adopt funding great the primary we funding funding the on are great trends, trade through private QX below prioritize company's company's to to

valuations Some valuation their capital expectations prepare their investor have raise exit. to or for writing down next companies set reset this recognized and publicly,

to that XX average but primary their the the for of pent-up others, a funds. between raise unless come Many need investors new round recognition delay to demand to they grows. and time and continue primary new only of many months, extends primary won't from stamp liquidity rounds companies as last employees For until an

could seek in invest for While have demonstrated waters. get The to signs the enthusiastic market still to to demand public private public they which public of are more have exits. into weighted only shown investment opportunities large a handful of has unicorns have past early. by those intending on unicorns motivated Investors reception who cycles the for encourage exits investor market

Forge about Investors The Forge Wall headline Market July Drives sentiment, bottom that that are Awakens we recently "FOMO for investors the as IPO Slumber." worried have even feeling, as From Signs Long are on missing Street Journal captures XX the good private the public indices, in year down momentum in market private the of And index end positive persists. lag is guided market for the major lead the through we of the versus XX% QX. while some public

remained performance to ending period the market X-month first X-month the the beginning the not turned decline in period the since did July, private the at XXXX. flat. However, That's market of where index index Forge

are XX% closer bid-ask That's from the seeing meaning, noted first and between investors a Through that spread also the and seen on in to narrowing investors bid-ask end rates prices We've of companies in narrowed these that platform reached ROFR we also that bottom. April XX%. signal sellers Forge attractive. May believe price and the June. are sellers as and to continue, on some saw refusal agreeing are the to of a of positive elevated the buyers getting or XX% in they've existing spread right perhaps July, We've further XX%

in we platform. in we on what based expect in interest Mark the closing, to par better or third And as markets see quarter, and second we the far on the quarter. results some can so than mentioned, the momentum are In come on feeling quarter activity

technology As continuing momentum. to growth and forward in we we as are look invest offerings and the to to continuing exercise lean disruptive market our positive reawakens, our data

you to and back Thank Dom.

Dominic Paschel

line. Kelly. you, that, open can Emma, the from questions Yes. Thank to With we please

Operator

first Owen Lau question comes [Operator from of Oppenheimer. line Instructions] with the Your

Owen Lau

private passed the for probably think people public have have private time some for say markets, some markets. reservations. that you market people still mentioned worst the I Kelly, would but you just or So many troughed we has

what the So trend? are wildcards derail potential that this can

Kelly Rodrigues

are what repeat you could sorry, what? potential, the I'm

Owen Lau

not see like trend? potential potential derail would reasons that materialize. recovery reason you can Like may this that these Any

Kelly Rodrigues

in think take start I and can watching are in. and what the we'll Mark, years those. I'll clearly, trends markets Well, watch to been for X.X macroeconomic But mean we've longer. you last I world jump the big the private continue

pricing markets the that finally public And in I think in while. so seeing seeing to you're have private present what the public you're been a markets is reaction coming for

delay specifically other factor me. this I say in anything So only at the is say can't jumps fundraising. out I'd

marks until performance to say that improve those markets. street, keep But think is degree start comment delay the too. next they are may hitting some on and they round at their to irony capital quickly fundraising running be as I will a not that the probably and things recovery. I until companies this start Mark continuing And of see the that public one, I'll continue let pace as

Mark Lee

flatten. expressed pretty Yes. Owen, I right? We're the comments that We're performance as We on the through seeing improvement. variables seeing to Forge much think market we of private of spread described are index the the in private it's kind narrow the of call, markets, the in start companies the seeing signs private right?

I there the today, the counting XX%. XX%, the up NASDAQ XX%. that think QXQs up XX%, up the was last looked When were indices Russell I and fact public at Friday, through recovery. has not been was a up stats X,XXX, yesterday the S&P --

index look quarters. XX% you private flat the and private by as markets, when the the public X our this measured down markets, disparity So so the in year, lag at last and between for investment the performance

side. represents slide to people for be of that And even potentially opportunity. an opportunity have willingness as kind as that a liquid in though, And the the could less don't the lag markets it's long course, and think the I market public invest market. of private an who public back

IPO continuing signs kind growth how of is to market round, continuing and business. improvement our the into be So do that's, will positive get normality, companies back starting I as of funding market signs all question and kind will to next companies the right a said, return Kelly support to starting And the of think whether to their of right? of it's that we're seeing those the

Owen Lau

it. Got

increased funding is first quarter. terms second to discount to round talk is any like the medium shrunk I And most second like do about of funding companies? valuation, of the please compared then that rounds, companies helpful. very the think I quarter think companies? you And trend, in most this AI the outside how these of valuation this sign shrinkage mentioned by to AI valuation that of you the has in you Could out driven into other much see the broadened

Kelly Rodrigues

AI we of AI don't sector -- now being overall So point. at this mean, the I companies is definitely see valuations the moment. by driven But

to with reset I into companies commenting beginning to been do on of more think capital, macro more comfortable environment overall just And valuations talking that part are finally we're it. that And in the the we're probably But in about has with raising to of last come about early. people to capital raising market. companies the having back what at I've the great months still the press having we're fact the stages more X getting do, do the X improving. to

fairly raised a in rounds. percentage to early X new in great have X have last the still months got we've the traded small relatively that that think reset. I It's of companies

play over the out, quarters. will to X this I So next think, X

continue it. is we'll exciting. you Certainly, it. a overall not to valuations interest AI there's as just watch lot So think. in of much affecting It's might as But

Mark Lee

I X, could to that I out private would you've sectors. Forge which we one recently. on we to Forge chance publication published Hopefully, the investment market had if a break Owen, outlook index read thing. add the you more across Page refer actually

the are embedded or specifically you index. asking show we the different returns you're the of within that specifically on QX index our what sectors about Actually, question a parts the market when performing. So of page

lifestyle can Fintech, transportation, real consumer And tech, education those care, of and our and software, kind food industrials, on for we out you average that So page, subsectors the index. returns see overall and health break within of estate. dispersion each enterprise the

we're insights seeing that long into and So to kind other of what and and a giving go I think companies. would way sectors investors you across readers

Operator

comes Jeffrey of Schmitt Your line with next question William the Blair. from

Jeffrey Schmitt

look? of out segment continue does start when to that and you out separately? build the how might as data capabilities and So continue growth there, And to breaking products platform that add you

Kelly Rodrigues

at rest years we're to hear can we've we've to our share. the don't been market out of to emphasis statements as and as the already forward more 'XX, we our pretty looking Well, about is feel any more out. want you reached look messaging good going into index. we and since to 'XX certainly X.X go but we're emphasis, And like when point, and this it's on brought set up marketing begun how we put product to data make committing mean it do But at it. expand I we and of organization

So we looking our that to but commitments not make investment at top making XXXX any of to are specific one continue priorities. X and

Jeffrey Schmitt

ahead, Mark. Go Okay.

Mark Lee

Jeff. data Sorry, annual our end intent bookings was year to reminder, annual the year going bookings to each minimum, annual our our a just be would close disclose at I at as an on a of and -- the we basis. didn't

Kelly Rodrigues

Yes. And up million, $XXX,XXX. at was of the end $X.X year, the that from

Jeffrey Schmitt

it. Got

Okay. fair transaction it volume volume was be And trade, up a at the seemed per but nicely then in looking amount. to down quarter

a shift quarter? the retail drive the on of And platform did was up to trading the there that So there rate take in investors at more all? sort mix

Kelly Rodrigues

observation, great Jeff. a It's Yes. Yes.

in So million. I amount did we pure fewer terms We kind trades $X in of mean, rates. a just block large that of of do terms of over numbers, the actual measure

but we rate. pointed more number drove obviously, take you trades. that up smaller did of our did we significantly the And fewer a out, as blocks so overall large And was, positive

year to for compares XXXX. rate the XXXX take full of And and average so that X.X% X.X%

by where a smaller trades. it was was quarter more dominated it So

starts to are into again. seeing Although QX, sale up trade pick early our we average

in of we've about that, talked So affect trade avert overall our that past, something that is business the as sizes. rates will take mix and

Operator

with next comes the from Your question Securities. of Devin Ryan line JMP

Devin Ryan

questions A just all you guys and and on your report outlook get good outlook the to well. couple of as from color the

buyers once see starting evidence higher TranZact do is, what you recovery. kind of like of a We're a you and obviously way, get maybe equilibrium just there demand of sellers to it see catalyst when is I window recovery. to of recovery and a IPO to is do maybe to opens and and to feels of little you next there's to just cold couple going really be a point the drive drive troughing it we the little you years maybe will just get thinking or pent-up think Or if be that's over right about we kind like? this bit higher level extent do about building looks confidence guess trying question kind around it. that feel I quote good are But flavor some spring think spring? the So a a that first to the of thinking between not steady where about like for a to guys a degree the recovering? of of really a the we're and the the guys are how love that

Kelly Rodrigues

Yes.

to quarters. business same sure volume pent-up that we're particular, to making the in a for and watching careful been suggest not we've would and in going that time, the back XXXX return come in manner and the data we're the running kind really that the several about assumes So been it's we've demand of there's hopeful But control evaluation. cost at data

degree us that reported to and say optimistic platform bid-ask the that with I'd a numbers IOI it just that to We're with but while, not We're manage the been we going become pure expect have the going starting we're see of we're are quite for are improving. some on into of recovery. one pretty watching spread to now really it. the of And has on just data you're to back can the at expecting from we say sort charging modesty. of of So elevated that's weeks. pipeline made comments And why year see until good view a improved that of because that our it part pipeline, those the the we're steadily they next I'd we now. the QX reason And looking is beginning the X gives about the things

been the So the I comment will encouraging it pipeline improving take but that and let guess is is Mark while. I'd would the which at continue My expectation recovery that a further. that rate say improve to indicate I'll will that has Mark.

Mark Lee

on I be I standpoint, think market, important I I macro that, seeing privates. factor. mean, exits come the spot seeing IPOs an would Devin, from It successful for add think company a public in are will back you

but great I terms micro round on validating valuations to number relatively On the funding do think IOIs, levels balance as primary of buy-side be of will mean, some new a still mix sell of and next see in I And kind interest mentioned, of and IOIs. improvement the another new which side of for sell-side of the slight we reset sellers, a has issuers we companies more That by Kelly record versus the evaluation. in see more seen the there's have private some the level, reset both represented as that steady private of continue terms normal our do companies. number as well of platform.

last about ratio is sell that closer quarter between side coming talking X/X We now have is ratio that more in. IOI XX-XX. roughly to X/X life about to been And side to

want buy So IOIs and some improvement. are some normalized we sell more between that a incremental we see ratio to towards I start to but XX-XX mean, improvement. would back get side seeing

a highest and in that in the issuers X traded on and exercised prior had terms percentage exercised level at ROFR, of kind plugging issuers highest QX number their that's XX% to have quarters at increased to had which That's we chance of in years. from the again, which increase in quarter. point number all read that of that the out investment ROFR do companies least terms then And outlook you which we over of of an the in ROFR if I'm had last the point, of the

public when in that between that with talked So performance markets. private disparity you we I in about the XXXX think combine

that that the looks kind getting issuers of attractive. awfully exercising I of to tells think as their by supported you in the we're point the opportunity increased percentage where the companies valuation private to ROFR rate invest

Devin Ryan

And special for but of kind of I was Okay. time. risk just that a for in and helpful. framework not is environment Really that appetite valuations related think some here XXXX of environment then the somewhat we may be type that period and

However, secular the the growth market that there's a the aspect you're of and market. in maturation to

So we don't necessarily successful. to more need to be to market be be for in XXXX volumes the higher, Forge much

that's think least I thesis. part at our of

just to get can, market love we the on, share anecdotes and I'd into maybe further there's are on market just the you're around that some hit just you So in if also more that Forge environment, standardizing so just market greater. with is developing maybe when activity Forge a a lot your more of trading the that "normal" companies having progress on

are market. isn't of guys maybe yet some doing things just of kind the in in kind still evident you think about this private to scenes the behind of becoming trying Just we're the trough that because

Kelly Rodrigues

than there that companies life through runs capital natural company the the secondary part more which the what previously is needs liquidity thesis of the private a ever the X I'd coming to that of different than First public based upon world-changing companies has conclusion say is business going the longer was liquidity, that unicorns an a of of that same access and to newer a build all, to that case built years. are staying were sentiment lot anecdotal in there was private company. X is when are

so companies this greater part And were saw much we I years Mark than when ago that. from X to and continue of see we accepting support

guess, what look was happened driven volume I so XXXX, if I to the in XXXX. that big of IPOs lot back a And that by

And So this my sort then but of U.S. the world by I made as a in well to in yes, to benefit just companies, guess will level globally. broadening -- today from we of normalized part comments some where of we come and participation of believe to new got for we that as group or aren't get have of people we've back will in not that I a my IPO, portfolios. more buying a will that products buying company broader access a a are allow why reason because people's the a is market for index to that much flip mainstream hard position there just

we see that starting of present themselves is whole such a reasons It's the future driving of and part of are are the so why significant to that our set index factors other now. data strategy. And one a now the

we Said the to unsustainable are overall we've XXXX, that market. nosebleed way, got where valuations don't and need order another another have in expansion success the of the

in the we're so early And down so the of the calming about been overall a tough got we're excited time. still seemingly macroeconomic maturity really but a -- market. to we've It's We've a little ways there's go that but set of to I'll like same things about up. market coming others you'd Mark speak let really the points we specific are. potential that are the excited data see TAM in to But any I'm the on

Mark Lee

just been international challenging right, products, and seen would very Forge the will same market I at has But lending you've data months roll XX time, think reiterate, I operations the different of last, look, environment. No, obviously, index. capability, Devin, an kind a and allow Yes. open this out then up

but to find managing between to our our investing burn costs also carefully, that for continuing we're future. the So reducing balance try

in we've where So to in in now back progress. our to we footprint comparing and good and We're we a market our I just and were doing where XXXX, it do terms of continued environment. think make services are capabilities products our difficult that very

Kelly Rodrigues

on talk about of while cycle's to phase sort and next part market. is while the to automated and thing not we're some the the that tough, I'll do our the And bet can core in those that have a that obvious. is significant to the we've this specifics been make and of infrastructure when scalability that's and of investments. scalable, continue last one add the of XX market we while do been building you more highly ready market overall organization of the of we continued And there, background has bring think benefit efficiency be to the market that them out, we will they dislocated terms this to use months focused in surface

So stay tuned.

Devin Ryan

Yes. That's follow quarter-to-date, here all per the and trends and trade question up of I some just on of also one volume great quick appreciate in an seeing. just color. If squeeze kind just there could then my the I one earlier you're what to color to

that of that more and and greater that Just over for in should dynamic what if more expect of like don't hard is kind time in looks trade of mix a -- of like on a to us of normalization the of kind thought simply at make just with kind the Just like here we any a you uplift it really valuations volumes volume there on normal normalizing just kind should Is shift see a per market? activity Or outside? of may higher transactions? know mix I predict or level, recovery kind from there's just along market the here?

Mark Lee

been employees, particularly X expansion tend kind of number of to thought my which what on what's deficit that is obviously more of the institutional sellers some really lacking last in buyers. the that we've quarters individual have company the is been seen and Devin, general kind Yes. the of huge be the sellers of founders a a

then you I the as start back would time institutional buyer so size buyer that as that And see go would again. that average comes in. think the in trade to back up over And come things do normalize

see we I time in think recover. as So that's markets playing general, our out it how over

kind so to the to $XX,XXX, accommodate continue process, in Now goal smaller smaller our $XX,XXX, can to down of trades lots. to $XXX,XXX investor efficient transact individual small well so -- to to contrast in wants expand the accommodate is improve automate size is can from size as as people wants we of to that can the one we who trade who that bring that our institutional as efficiency a minimums buy we overall investor and the the

even and tax size factors. we lower create And size think into private can should market by offsetting more to be companies. our Institutions our X is improving expanding and to coming those I trade start so our efficiency, raise the as would smaller-sized cap invest, trade average trade back

Operator

[Operator Instructions]

Dominic Paschel

Emma. you, Thank

I go. think to good in think so I -- we're we're

Operator

have do call. one last We

Dominic Paschel

okay. Oh,

Sorry.

Operator

line of Your last question from Worthington with JPMorgan. the Ken comes

Ken Worthington

first Maybe on headcount.

quarter. was I March this X% from the quarter think headcount up

I was far the X% prepared this think so down you quarter. it maybe in remarks, said

positions fit So trying building talk building little And about what headcount of headcount initiatives efficiency? a good of opportunities capped? sort Europe, to can of indexes you data, the and finding you kind bit building number Where into this all the keep have here? you out out how the filled are does for being out are

Mark Lee

Yes.

key met right, Kelly me our on I add overall relative our can a trying footprint to bounce few same each to focus expense maintain you comments us, trying all and then Let in. a right it's mean the for chime points at here. time, while quarter. strategic and to priorities manage to I mean revenues hit of our the in

It in right? employees, year QX started broader the And so XXX the headcount recap, I XXX. we with actions We to dropped took down. down to mean,

During amount will to as numbers key hires from QX, vary. combination of up And expanded a and team. right? out always turnover and the of strategic backfills continue So build XXX and to head quarter-to-quarter, backfills our our fluctuate critical hires our some count back will technology

maintain But right, we've generally working speaking, a count. before, We're in our to as head we're discussed hiring.

the went up July, is back down down call, XXX, said the headcount with of XXX the to to now And as the QX. XXX. at numbers from so the XXX in actions I during to back end And taken

still trying subtract. and we we those kind manage and competing out figure add where where where are priorities of and we're our we us can So to strategic for year to the and try can below we started actively

Ken Worthington

sense. That makes Okay.

Kelly Rodrigues

either Yes. expertise that up where that areas engineering composition that our been specific focus we I'd has really line of in the institutional specific go-to-market add or that institutional on. areas of those and our need or focus data with focusing services we're segment underlie

really making of kind talent a mindful reducing of we're environment. panel priorities. on as we're very and we're really it's in to sure that the trying instrument this So in the not offering about specific those sacrifice game here bringing to fine-tuning That's so where

the appreciate question. I So

priority we've we and up that investors ourselves. should trying strategic I known it's line prospective by the resources to set really investors our think underneath precious that are that the for be something

appreciate I So the question.

Ken Worthington

Great. And one one. then last just

about which and on change goes are I'm ears But probably latest to bunny of first like -- investment unicorns reengagement you've sort using -- having Ford this valuations below demand. list this been how and for private mentioned time? prior question I new rents with the get pent-up Does to has to you company think the it private that new a XX% changed that the trying companies right? sense, conversations makes reality

having in but They that same sand. that there. Forge it's on the to those and want participating already And out mark really an are in ostrich is public like this is that new impact something head don't reality the extent, this the platform

they even And really your go becomes this to to or? reluctant tried as the business impeding public that platform. right to But and trying anyway, therefore, Maybe they're of or on in were is of the Like hide sort more here many the platform? are was So the participate public, barking willing from sort you their I am this audience rounds tree first to what reality return reality certain of -- place. say target to is maybe they reality? your to next up what your as

Kelly Rodrigues

mind part their had reason of baggage to were I visible may started participants months press No, activity the that the of starting valuations unicorns lot couple emergence you're of not being for unicorns the we ago, a emerging XXXX. of lot the A making the sense. think the in newer to were QX, of new in and highly reporting that have seeing. of share actually with And of that we populate a

so And have might great in like least talking reset applied because about not we're weren't around as that not it's they almost therefore, them unicorns. XXXX, at the to

with your a with valuation having that and deal to say we're there's I'd X classes are resetting 'XX. the with almost of in companies to here respect companies question, high handle dealing that of So that incredibly was

have And some companies about it that publicly whether 'XX in deal be whether Stripe, we've talked having Klarna, are previously they're whether with. Instacart, out, to massive names it them you be this it numbers be those because of know, going

bunch round. fundraising done a other that names a there's may of not Now have

I all. And that call X would so have what years there ago. clear our question to yes, is still performance point. the But of what things priced sort that's look of at relative in that the to still that's some valuation be And unicorn category face class is pressure. at music unicorns reality is aren't but to the about now what up. area, brand-new the is, that facing at should And a itself other of There starting question

they as allow say reality as that or if conclusion center. far company concerned, the I'd is all at comes to the that a in to, program they manage current fact, in and of a valuation front So trading a cases, want Forge I'd is want environment say

to We by reset. that that the as part will that recognize of acknowledge that's And we're in. this not the trying hampered great companies metered by reason be or long moment as we're why

money to a sure. the think get they have lot So haven't I -- to reality for of but still raise when yes, Ken they'll there companies yet, and come

Dominic Paschel

and call. think conclude the questions. all Ken, Thank QX. road you, here appreciate going look today's to to in we're you for forward We on being those you And I Awesome. seeing

Operator

This concludes today's conference call.

now may You disconnect.

Forge Global (FRGE) 8 Aug 232023 Q2 Earnings call transcript