Forge Global (FRGE) Oppenheimer's 27th Annual Technology, Internet & Communications Conference summary

Business overview and value proposition

• Operates a global marketplace for private securities, offering access, data, and custody services to investors and institutions.

• Provides derived data and pricing information to support informed investment decisions.

• Enables asset managers to create passive products using a proprietary index.

• Maintains a global network of buyers and sellers, enhancing liquidity and market reach.

Financial performance and outlook

• Transactional revenue has recovered, with five consecutive quarters of growth after a significant downturn post-2021.

• Expects future revenue mix to include high-margin data and transactional streams as global expansion continues.

• Projects breakeven adjusted EBITDA by 2026, supported by 32% annual revenue growth and $11.3 million in cost reductions.

• Cost savings achieved through company-wide cuts, while maintaining investment in technology and revenue-generating capabilities.

Market trends and industry analysis

• IPO and private market activity is recovering, with capital raised in 2023 IPOs surpassing 2022 levels.

• Discounts to last funding rounds in private markets have narrowed from 60% to 30-32%, indicating valuation stabilization.

• VC fundraising is up 61% year-over-year, and bid-ask spreads have narrowed to 6.4%, the lowest since 2021.