FRGE - Earnings call transcript Q3 2024 | Forge Global Holdings, Inc.

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Operator

Good afternoon. My name is John, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Forge Third Quarter Fiscal 2024 Financial Results Conference Call. On today's Forge Global call will be Kelly Rodriques, CEO; Mark Lee, CFO; Lindsay Riddell, Executive Vice President of Corporate Marketing and Communications; and Dominic Paschel, SVP of Finance and Investor Relations. [Operator Instructions]. And now I will turn the call over to Lindsay Riddell. Ms. your begin may you conference. Riddell,

Lindsay Riddell

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

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

is today, Investor complements a financial market press page discussion A Just the results. Forge's release, our announcing the closed of after today available release of our we issued results Relations press which XXXX on third quarter This be conference presentation investor hour call. for beginning call and website. this is being an X available XX on live webcast our about after will of also replay the IR conclusion as page. a There's days,

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

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

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

results. focus quarter quarter third same on the we page. Today's XXXX discussion posted on will Additionally, information have supplemental third our

our both As can of performance, always, full that we that, of over to affected picture you for I'll Forge's a Kelly. are it be by which outside evaluate control. With events turn annual and unexpected results to quarterly encourage

Kelly Rodriques

participants for of the a you include quarter and our market. In us expenses I'll marked improve Net to marketplace $XX.X today and access from transaction-based the QX million, in revenue quarter. and but slowed on trading afternoon, These for from the activity, to ago months year-over-year. QX, but total start product summary Lindsay highlights the were million for Good all John. the was joining Thank with private $X.X that slower few pre-election summer us a up the totaled everyone, expand and technology thank less to XXXX, innovations as up touch experience compared the are helping you, year revenue of and exciting quarter. high-level today. results by down XX%

continue of to engaging a through our in see investors set platform. broad market the We

the of institutions more There we institutions on platform. participants, XX,XXX While And investors of our inform of Price, volume market. announced investment pricing end, track our QX, in unique able to to through our insights pricing the and for and deliver our spectrum across than up institutions a credibility, deliver we're annually buy-side book access decisions. To least are the because business. we since Forge of trades record our delivering largest because private for breakthrough proprietary account come transparency to at our access Forge of make XXXX. Institutional registered X/X platform closing of that in

funding It XXX price most Forge serves rounds the of combination on share liquid the of secondary of derived based indications interest. company current price and as more Price transactions, a single of than a recent an market of is per for indicator share a most companies. private

a X, we September, the evaluating private best-performing to Market delivered in largest, insights through believe the our an group resilient, of Price most performance feeds serves advantage that the identified market. the pricing pricing pricing Forge in model that unique the up-to-date market. In We when comes underlies the private that the up-to-date the it our companies as Magnificent is trends indices and Private into and in platform. insights

Forge potential with Price Price. of insight future makes this visibility type the for excited analysis possible Forge now and partnerships we're and possible. market And about

and better Next made Our experience, Forge efficiency continued that the Generation further make needs bids investment Next liquidity Platform Through globally platform are realizing for into to deployment trading aim competitive onboarding to the the objective. enter the to we results, allows companies. Platform, shares. We in and that data, the easier us Generation QX capital our support market and of seeing of provide from pricing scalable most expose private it we're participants, of access experience, believe We in the offers enhancements process. world-changing to advanced, drive Forge believe clients decisions expand and and in client for the make improve client we we already in

update XXXX. We a I that give to over Now our on quarter regarding announced the before we to in turn look to our in to the reaching took wanted quarter, I timeline Mark quarter it adjusted intention detailed motion. additional aim actions goal an in breakeven profitability financials Lee for to what to accelerate give our EBITDA with set last the at of third

the our to As the severance coming EBITDA our with the adjusted prepare expenses, personnel in you'll reduction anticipate an organization force, hear losses from adjusted increase is other Mark, for plan. narrowing see per loss expenses in quarter. you'll related announced the onetime profitability. We we quarters as EBITDA This as in and associated in

next quarters. ultimately in the engineering will but couple engineering future from engineering increased support along which also way we'll resources, may of over result in However, offshore costs, reduce our invest spend the

it So the broader what's Mark? market with then the next for Forge. to and at look over and a will detailed financials follow-up I'll into view Mark for turn that,

Mark Lee

slowdown. of million from the last After summer seasonal compared In quarters growth, was quarter X expenses experienced the revenue of third less million as transaction-based quarter. million, Thanks, and Forge's the total Kelly. XXXX, to year-ago $XX.X in we quarter anticipated sequential $XX revenue $XX.X

in and improving are spreads bid-ask as the As indicators quarter, valuations. fourth our trends such enter private we declining seeing market positive we leading

million million marketplace have including factors highly on weighed U.S. the in and the corresponding interest $XXX from uncertain contentious to and geopolitical the for $XX.X pace presidential year-over-year million investor XXXX. Transaction Fed in recorded the of election, quarter from revenues, of volume $X less $XX.X up improvement XX% the year-ago on for a XX% transaction-based the $X.X $X.X an a million volume basis. have is revenues, billion months quarter. from the conflicts, in in in marketplace XX% quarter, increased decreased to $XX.X $XXX year-to-date quarter. million from represents and Meanwhile This $XXX prior instability totaled transaction-based million $X.X rate improvement million the sentiment. Total current reductions, compared continued million, XX%, of of trough expenses, XXXX. Year-to-date total million the quarter expenses, QX However, in to less prior X from

net quarter. Our rate take X.X% the in of slightly prior declined from X.X%

mix about quarters, our any trade upon fluctuates has rate the over contributed XXXX, while trading increased the of in prior take period. As take given driving significant same Through volume XXXX, growth, to which depending lower. at net talked we've in sizes have XX% rates time,

In vehicles. interest third-party investment addition, in observing are we greater customer also

$XX.X transactions, prior roughly highly are of which often While another rates were million, the sought-after liquidity of for flat administration take companies, fees in types these Forge lower accessing to this facilitates. Total quarter. custodial means private adds

the XXXX. of the in QX cash balances compared rate as custodial of fund QX at the anticipated as balances cash million rates end steadily long has an decline of the a of at XX% Fed with $XXX X% Our end to $XXX XXXX modest custodial $XXX in annual the declines been in end improving decline and year-to-date totaled of finally million million The XXXX decline have started. from at in

the quarter. million essentially billion, assets custody As to last end were under accounts of were and custody of $XX.X flat QX, total both $X.X

revenue, third operating the increased EBITDA line loss net and to in $X.X $X.X larger lower to million million, with quarter-over-quarter. loss, This sorry, quarter, from our $X.X due to items. other of $X.X million primarily was non-cash net $X quarter in million $XX.X loss reductions the of million million in higher liabilities. In in last QX Our income, value loss million the less third favorable million -- was adjusted expenses lower in $XX.X quarter, attributable warrant loss a compared in $XX higher excluding fair lower

payment a reminder, prior legal the third includes quarter cost run in And in our with cash to as corporate operations the during million last by quarter partial quarter. the was insurance million annual $X.X $XXX.X reduction compared approximately quarter. to $XX.X compared cash million and $XXX.X rate expenditures our of August actions, million savings $X.X quarter associated the $X.X million of of restricted of with offset associated The premiums. Cash, $X.X associated used quarter million severance equivalents resolution and last cash matters ended million at quarter legacy expenses. Net included

excludes housekeeping a million our employee XX. September of perspective, XX, compute was technology shares fully growing headcount September a sits at million was number from and weighted capabilities XXX average shares. of XXX of our As cost-effective used our XXX, augments contractors, including total at count located shares, as number basic loss outstanding headcount June to in a down diluted XX offshore, which net share manner. From our XXX This

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

in we drive discipline said cost goal XXXX. to of focus towards expense we continue we've past, management our on in EBITDA our as adjusted As the and maintaining breakeven

it opportunities that we Kelly this will We for it brief strong questions. to will, however, we hand overview market balance continue back before investment believe for over to ROI. I'll turn against have a

Kelly Rodriques

macroeconomic market update AI in the and is last against Forge that Market our more mixed recent which its of the counts to the while in private liquid of X.X% discounts the months as platform in signals, to spread October negative to been the and the trading lowest October companies and of in Even X Private X on market among has are most up companies the descended for our valuations last backdrop monthly minus tracks lowest we market noted moved the Mark. election median in private its XX the to rising XX companies round in and years, cautious the up valuations on Thanks, September. AI the X. These -- constituents lead of trending funding are driving last recorded quarter. bid-ask X% Index, XX% discount the most the up. The reconstitution minus the Forge median X

influencer prominent companies performance see to each forward. AI more passing become to of private sectors, month, has we private private going standout are there a expect influence and with While continue performance market AI market across

rate and for over primary In the IPO continued to and terms markets a past robust we more interest believe environment point. the economic additional IPO environment, well tipping as such as market outcome an lead several reductions talked election the private funding could years XXXX. We've as factors the in known inflationary of in improving improvement about

we accelerate will opportunities Next market in tipping built that XXX participation. have the are our drivers greater of basis transparency, represent management Forge This months Pro, Generation now includes where together, revenue point more Platform, on of Pro. now future. clients year the that activity the and XX come for We data trading It's and in combining one. Approximately and XX% which active our of most through Forge insight in Forge first the and heavily invested comprehensive than the growth the who creating capabilities private data using order

are which more than Market Pro through as and our Forge our about in the talked private haven't supply strengthen Global vehicles Accuidity the for will world. We many relationships grow and serve shares investors. a access with relatively is announced source Private point largest to Forge we them investment liquid Advisors, of Forge about believe we companies investment and business of revenue of the XXX make of substantial sought-after more most lot cap previously the investable What over we've data-enabled these time. We expect part vehicles and for the us continuous represents a XXX of currently our a that tables RIA, unicorns with These created Index. active. of to capital

the for RIA sourcing to share companies continue our And and a market about the evolve we'll investment and capital for in hub access coming plans We for months. will more participants. central scale for RIA as

we of terms that quarter what our come will we in is outlook In par know the expectation better to terms on at our today. marketplace in of or revenue for this quarter, based

subside election XXXX. With months last confidence, the weighed for me over a John, uncertainty -- and hopeful of the see the will meaningful we're let IPO investor in we'll participants recovery us, funding turn Thank can that and that markets questions. on you. you primary throughout With the behind several please sustained remind investors and that it that,

Operator

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

Patrick Moley

your just you of prepared or at Is So pick is there based the you you the that through up good on the remarks, or activity Could Kelly, than expected be expectation there that previous levels this talk better quarter. in what maybe to -- revenues to an the mentioned quarter end marketplace are seeing? of about year? you're going things October end as

Kelly Rodriques

Well, biggest quarter Historically, of historically Patrick. the a has returned has of And XXXX the seasonal been QX year. set for question, thank you -- the normalized seasonally more to expectations.

I'll seen, as some expectations the we So that around script, we in impact results. I saw have in say with impact around election also that. I'd and start seasonality around people's some mentioned X, for resolution the

more tracking here the this out. think metrics that and of the continued ratios are the will QX with of a was But election back continue a rest sorry, moving of overall, bid-ask how time. I'll said, our I'm play so cycle -- say and add platform we're we're normalized elements the asks that Mark been second. influencer of the on signals that he's of some let seeing, did spread, regarding to the year And that views having bid getting But the numbers probably in I'd into including some most October softness. bids we of through indicating the that biggest

So we're it. pretty optimistic about

Mark Lee

Patrick, Yes. add just to Kelly, of out to some that of just the kind to that. fill comments so

X/X reminder, in compares now coming indicators. The would least And the that possible really one over that kind for where were XXXX. to remember, you those over percentages spreads it's compared leading XX% that around So process uncertainty as as of thing the discounts XX% And in trades. traded up in IOI valuations, and selling the buys XX right? frame, of roughly kind then traded spreads through have for issuers, market. of 'XX. compared X-week kind one of think, the mean, Remember, we the reiterate, And X% the XXXX, and of round And of in from positive in that returns. XXXX, in the for of we the just last settlement at kind positive, so of low feel XXXX average XX% the Kelly elections XX% in to you with I than now talked X.X%. them a I about, remind leading and our that XX% generally spread, most long-term a move of XXXX discounts good median in average in XX can of saw in are bottom about, to September. bid-ask the I September XX% thing. X.X% think good sellers, to XX.X%. of top the that's is going is September, activity that August, all to I indicators -- the that better without our a That's that, speaking, forward we right, direct hanging kind X.X% saw recall X- time to that we We even bid-ask of of stocks But positive the about our average trades, September feel

that in that the recovery either the expected quarter about timing second so and of in the you as when So we'll QX. that of half -- hitting see mind keep pickup think or QX pickup the -- the

Patrick Moley

what could reception then, share can you that those Forge opportunity the look you partnerships Price has an about maybe and talk future that nature Is there from date? just customers helpful. That's Kelly, the like there on on feature what partnerships. anything introduced, think that And like? you then for could to you And could there be mentioned been I of

Kelly Rodriques

Yes.

data -- of Forge are And for first our in I'd how including saying impact, strategy. say we, broader So the say the dimensions this the some first is of see data part we answer data one announcing And Forge by that Pro. answer that time, strategy now for is I'll terms Forge. of piece of the Pro enablement I'd of

dimension And is our us. Clearly, Price direct And sorry, our Forge Price, opportunities index but can indices, our Price different category be to -- distribution people will that range where for informative charging believe it component we fees single used issuer data. both our of an derived share in in Another basis now direct from the price and that, where I'd we're and with combines revenue of also Forge data say on fits name obviously, pricing, is including selling. combines I'm Forge data. that a Forge be really buying derived access our underlying in licensing for is, this individual for

to I both then would I Price So side. have are more And is and And Forge we licensing. on around more revenue our continue that's that believe and say Index licensing a streams Forge around the Intelligence revenue Forge are and stream Pro that we'll around say would Forge enablement enablement.

question So entire put in the that your there, context for Patrick.

Operator

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

Devin Ryan

question more what trends Forge more around Pro to Obviously, space. whether you participate. in are Forge I want are data give using institutional space. I'm to the can just the And curious clients ask Pro them guys there's then whether in much around any anecdotes institutional engaged or a how just may more provide Pro? increasingly seeing that just are confidence broadly, and about looking Forge at you're capital investors

you're you So you're to that weren't up maybe starting just to seeing whether kind you're there. new love get previously? And with and pop what data of some engaging around seeing institutions then and

Kelly Rodriques

Yes.

anecdotal let with information. So out some me start

data we clear, seeking of it the the year engagement feedback if maximize understand model the place, and think for that we and private believe of to better just look the for Pro. So management the there of for for institutions entire is shift that how have Forge and part and that in value real engagement to been same and all, And will evolve wasn't first pricing order the we for at market. value this

the revenue on next in of pretty probably particularly over world is to time, going represent we think quarters space going view excited on who I'd am this we institutions like of what that are does on now period our It top of describing in U.S. most looking to as look U.S. trying of institutions. the a that of out has now are mandate the So strategy figure want now what we're platform to think super push space. of report level want the to it big And figure outside evolved because engagement. from out with in hear, informs, of beyond, this way and XX%. Over for of it series about also street doing and at for are to as repeat XXXX a anecdotal, the way, just this to I'll make and differentiating of to now hedge the is success say we what looking as around about who institutional now in funds I well. the customer as did annual we're but X/X while we the Pro as has and part And relevant really to in And a either enabled accessing at meetings out to they're last Forge play, one into this and I mostly the how their comment or the biggest reporting that business continue trying forward, I'll our of engagement. And know but mandate, is Pro the a placing for of chunk Forge to this. I the everyone sure is we lot going we're not and a And of in couple that that investment going expect of institutions. end heard space the and for go get did, we last that penetration base, of the business. the to time, I very the our metrics for in the capability more couple and that key front global this did the future the had

Mark Lee

I that remind April. is kind of the out end March, rolled this and really Devin, Mark. also of Pro would early just you we Forge at

accelerate. days, but it's base adoption early is by to starting of pace the our So client really -- and

So that. pleased we're really about

Devin Ryan

but could And I'm that's of just and kind we administration things business private change about also curious, results thinking just your that anything touch potential can investors lighter a thinking be The the should a a the lot are if that's curious by a that how answer markets or has kind administration. engage? or in lighter engage to in be been administration, how be about could there might private that affected to particularly election a occur I'm there's follow-up no, obviously, the on of be that regulatory you just as on new been any regulation? market market coming changes one going in

Kelly Rodriques

Yes.

So we, like everybody to comes see else, next. are what waiting

is we're includes market this I the And just most soundness so And an taking close that an that might outcome is we've as answer election. And for around something happy touch market clearly, regulators. resolution of breath. certainty really of important and staying and lighter expectation to and be evolves. we've a to this think trying that safety a concluded that we're been the a regulatory the the stay example for there's to part

we'd ourselves think And relief this the the see access and as regulation here to the our participants market. what But in educate markets. we a is more and the love next really of best public participate ability administration. everyone to private going see public class asset oversight create being and in exciting, I would company more private and We part confidence like that's the and reason come to it. regulators lead in in company welcome we to would any we market. We highly the as that would came company, give for think the As that of just is the leader. felt a wait in and best play can engaged interest happens in, it to we're we knows, going to We're stay view as continue help this the that

Devin Ryan

getting but I areas accounts retirement what at. other have potentially are that or this discussed been opening Kelly, I'm where are was maybe just guess would hot it points and I Like to them. curious kind relief that go, of of administration in be maybe -- But and areas there that's that's the on we just things there don't could know up of button and yes, that terms that. one

Kelly Rodriques

just tell me Let you this.

We that of have interest more election. of this surprise been send asset to resolution unifying while. effort this access And support a and Washington found message, to pretty be consistently be up this years. liquidity. And been supportive year and that over that say, that that the access the there a last and I over got class it surprisingly underway there last We've for I'd is I been would to if year this leading one conversations have incredible to would an X.X in that's say would we bipartisan to -- witnessed something are more is we would

And on to people so this we're a the across have push we people and I sound And sides can both why to unifying place that -- good view can and and and of class we of make to thing a the it's aisle. safe and think it invest. about finding back to visiting educate really we're for looking asset more going new why a access excited administration for

Operator

with Your Alex next the line of Kramm question UBS. from comes

Alex Kramm

prepared were there you cut like next next about And cost run the few I you few quarters? been the But maybe call on rate importantly, of initiatives sounds some from onetime items. terms completed from if think a have how go Mark, of cost this cost remarks base on And most where talked about the do can bit you repeat then those think down the think when I will perspective? think is we stepping over for in little here? you you side. it just where do more are But you think realizations? yes, see in I a quarters, and the the

Mark Lee

rate. million in the kind kind Alex, of against million we that cost $XX if cuts partial indicated our budget, to costs taken run call, didn't of those took benefit. $XX were of about the you roughly remarks recall, so quarter And we we Yes. early against Alex, last our so quarter's we were actions get in August, going prepared back saves, a in specifically that then talked right? over $X.X QX talked full about earnings in and million X/X -- we Our

take I number, so And think starting a full you quarterize give quarter, could that you kind would point. that kind of if of a

we to One looking of offshore. took the expanding capabilities things that, care that is technology notice our invest we in are to

strong we is that for so in part a has return fits what And us. of kind strategically of believe and

expense. they toward to growth a expansion. top pretty otherwise, -- idea. kind is our are onetime and so that gives of and you And of on worth of take I good out trying also, so basically move kind that bit, the through right? And I severance mean, to obviously, And where is something line that I our think, manage kind our -- costs we're to focus otherwise, is kind continuing you of looking breakeven a factoring think

Alex Kramm

with an topic, can you views then platform And your maybe bit competition to there get give second a basically us is out Private update specifically, would on new maybe Nasdaq little Kelly, a of Market and love on now.

pricing, came new X/X for on your obviously, attractive at of platforms. those about pretty are level some of always this relative And to I the they you. talked that clients in a assume call looking institutional. are You

big new there's that if with a of ahead is bright market and dialogues or future wondering your just here. your it's like So feel customers views some still on you if competition at changed all, biggest if the fragmented have enough still driven

Kelly Rodriques

have. seen is extremely And NPM the entering we've announcements Look, are And of the in there position others that to capitalized market. there the while well-known there's the from confident I others, some by than others many some we about nobody Yes. recognize with we better competitors feel similar more recent and build decades announcement out out with there, our than market. that names previous network

we've of and witnessed harder as can build than the build you so think can a go most infrastructure a I that markets, imagine. show in up. lot that you to lot people hope It's other and And platform, do

highly our to Generation going on we're So to Next Platform. stay continue focused

a what amass because the to I about of have long think for trust a take will and know commanding even and today XX,XXX participants if that of that that, build talked is for buyers lead in to to platform a offer sellers it actually space. When have those we time attractive thousands and have that and accredited matchable technology someone on investors, be the are institutions I even they and if realized, you. you pricing they you and hundreds

and from the of the very position. And think standstill think competitors of I reputation combination to are from business. some a emerging the completely parts is come hard I overcome scale different of

validates example TAM institutional on it pay. some and scale, new rate, take to market what have private recognize participants you're to. I'd it. to I to people position trading, where a give we continued think as particularly into an to the And really of of I relates say people trades I'd where market that in dynamics going a lot competition. welcome grows willing pay comments We see we Mark's come attention is the that continue are it you are happen it. are to pricing So in everybody to of say think and something for the And exist market and

the everybody build business respect trying I it. competitive there to evolve this landscape and out I changed. that's has materially don't think So

smaller really private right I'd current fact, the for companies, say the if fundraising smaller environment now. markets, is In anything, competitors in difficult particularly

that advantage areas that's management for in watch building to Forge about going And through say to a with think we're or talked of we Pro, we're a watch about I'm welcome And are. And that. so the talk in I'd people, continue basic stay we're the we about talked we these tuned, asset data call, terms year We not traction increasing couple and to next competition, to because to obviously, that structures, where but the On we enablement competitive it. say Forge continue what concerned pretty the in of we X. I'm the talked of confident more enablement Price. platform about platform. I'd going press and this matches openly building fund next-generation about say be I'd and major going

Mark Lee

Alex, book, as this of mean, would And is it's I our of as kind And book there's others to -- of I couple trade of so customers, Kelly to with I will limit liquidity, Kelly's kind right? I pointed order add mean, things. where a comments Mark. think, our to will depth do catch know, of you of try. up experience, hard our the right? depth out, we institutions

we I think you've last names traded right, heard, as names We trading Pro of others the -- have kind XXX months. I over markets. XX in have Forge talked private the the about XX also product.

Index. We have an

We have Forged Price.

through and capital access the on company hard-to-get which into either We with with have when -- invest -- custodian. secondary or have And through can the just a we XXX you names we people vehicles think primary over basis. which about RIA roughly companies can fund

of of we've going players these market. are that -- thought in have thought So I catching or be never all we've will of one there's X range hard X long or aware up to. kind a there wide think this In winner-take-all We've time a to to that the be consolidation. you're that just scenario. run be products always finally, there's going and things. There's that a of built will And then kind those services competitors just

still So of kind that's I think about it. we think how

Operator

question the next Oppenheimer. Lau from comes Owen of Your with line

Unknown Analyst

Guru Owen. of [ is ] Revenue Europe picking up kind in from on started XQ. This for

of under And Germany. believe has been still some carried I Forge XQ into in as Has over U.K. momentum so is XQ? And that the of of operating an think how Europe, quarter? this and I activity license umbrella parts

there over of BaFin So approval in terms are there license the any updates process?

Kelly Rodriques

Yes.

continued are now. license have where And evolve. status So we are say I'd we happy we with to given very our

both the and we're that we're license the BaFin while. I something to happy a we've is Germany defer view choice U.K. in moving is And going a think activity for our figured is out at with. really pace that our and that

well next have our London one more be this of that update. But think talk about to ensure that U.K. access some market. are with senior in use balanced relocate we're period of trying balancing that and and the leaders the European and got we've and in the the ensuring markets to we'll next to to I U.S. are demand had prepared our supply really participants that to in we

So it we I'll from here. traction Mark but take that are evolve, seeing some of let

Mark Lee

Kelly structure feel and our through Yes. said, working are like tight essentially, it's I agent effectively. trading very of we today, we mean, as doing kind Guru,

as the Europe in where we're we far continue Forge are how to for that's going as future. to near So operate

As the they slowdown that summer first happens saw earlier momentum in saying come back the as August regard particular, going expected year into QX, question part think was with then at to there seasonally September. in your we almost of July some I QX, desk the institutional every to kind in as far times in of are in the and was off what and QX were the the and we investors

did seasonality think now removed rest hopefully, year. And exacerbated forward election uncertainty, is So also is so election market. and kind out has are picking was by typical from that that removed, this of looking think, upcoming to I overhang, that the the of the play I the up that QX, been And right? uncertainty as we over it

Operator

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

Madeline Daleiden

on Madeline Daleiden is This for Ken.

platform. the of higher declining the fee mix towards on to due quarter more the names popular this mentioned your rate You volumes

of names as Mag sort you concentration low you made similarly, we're would percentage if share of can And of mix these So sort popular X bid-ask are type metric contribute names there's up in dynamic XQ? any well? wondering to volumes the private X-year this of what

Mark Lee

Yes.

of is So take on the in the rate about XXXX, your lower right? question impact concentration

Madeline Daleiden

you color Yes. can 'XX, be any provide would going appreciated. forward

Mark Lee

Yes.

it could of struggling. as and still companies and you raise are our that trading of to So a think has in companies there's been capital, the PMU this the as been when ], -- year ones and the think FIO where to lot [ doing our a up a you well, dichotomy that are look able is market, talked valuation -- those between this numbers, I that really Maddy metrics, of at Kelly go are about, kind

track I of and of XXXX have had think that haven't Forge last since a round we companies those we or have the funding Price, said PMU earlier. XX% in the that

So to still the really world years is really right and that now thriving. kind the couple kind those what's trying of are of through companies in get happened split into of that last are those

in of seeing the and companies the names of in take the lot lot trading size, a contributing rate. a doing back very, very AI institutional activity, They're So are and that's other interest And we well. bringing trader. to that's

something expose asking, or future. we kind it's report to data kind currently the So of information with of you're to be more consider able of to try to specific kind but regard in what don't give we'll you

Kelly Rodriques

The only just add, Mag did press some the of of market. thing I'd X XX% because this makes up on is, private I valuation the the entire

And on are so of these interested people a lot Forge are names that that and trade in.

in the looking concentration some companies you're size So see when you're here. at to of going naturally

billion You're over for looking at to billion billion, companies ranging SpaceX. $XX $XX from $XXX

XXX are in We XXX last be to put out. in still between unique going think I Mark some concentration. But the XX names and months. naturally there's trading the So number

trading names quite and most where so the than there, very lot concentration no markets And have sought-after broad public is here. of going of too. breadth range a different to the biggest the and you're But it's in

on Mag names, if decide it. see the But we'll concentration certainly, Market further Forge some Index you're X to going think we Private top within get volumes, the XX, I into start and So the to within reporting there. definitely

Mark Lee

I mean was last when Kelly And high in Maddy, back comment. I I concentration Airbnb. joined very Forge in one XXXX, mean, would and add I there Uber and

Kelly Rodriques

names. X Probably

Mark Lee

and back the I of of as market through expanded a And were concentration kind huge part But the went valleys. peaks and grew out, concentration that market down. then. think -- goes

years a name all went here companies. over companies those years traded example, When from a or so I public, their of kind Uber of and come X But then the be as public us, no that public like take increase we high, coming For again. them names rose can up back over think go other now, right? And platform X of been both disappeared as on our that to down, up big years of longer we've of for place, went kind concentration sudden, public. Airbnb kind seen it's we've

So situation. think I static it's do of not a kind

Operator

over any to turn no further at Paschel would are like As remarks. for Mr. back questions time, Dominic this there I to closing the conference

Dominic Paschel

to after and on Thank and There's both visiting joining Coast John. lot Year. day East West us going the No. a on Great. you, guys forward before you the look Coast appreciate the you We New election. on the the

Operator

conference and gentlemen, today's you for your call. Ladies that Thank concludes participation.

disconnect. now may You

Forge Global (FRGE) 6 Nov 242024 Q3 Earnings call transcript