Forge Global Holdings Inc (NYSE:FRGE) stock plunges 26.42% (As on March 27, 11:19:08 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 23.  Total operating loss went from $21.5 million in the quarter ended September 30, 2023 to $24.4 million in the quarter ended December 31, 2023.  Net loss went from $19.0 million in the quarter ended September 30, 2023 to $26.2 million in the quarter ended December 31, 2023.  Total adjusted EBITDA loss went from $10.4 million in the quarter ended September 30, 2023 to $13.6 million in the quarter ended December 31, 2023. The fluctuation is primarily driven by a $2.5 million increase in accrued legal expenses related to a settlement reached in 4Q23.  Net cash used in operating activities was $6.6 million in the quarter ended December 31, 2023, compared to $3.5 million in the quarter ended September 30, 2023. Cash and cash equivalents as of December 31, 2023 was $144.7 million.

Moreover, Trading Volume increased from $234.1 million to $250.4 million, up 7% quarter-over-quarter. Net Take Rate increased from 3.0% to 3.2% quarter-over-quarter. Total Marketplace revenues (previously called Placement Fee revenues), less transaction-based expenses increased from $7.1 million to $8.0 million, up 12% quarter-over-quarter. Total Custodial Administration Fee revenues decreased from $11.3 million to $10.9 million, down 3% quarter-over-quarter. Total Custodial Accounts increased from 2.02 million to 2.08 million, up 3% quarter-over-quarter. Total Assets Under Custody increased from $15.1 billion to $15.6 billion, up 3% quarter-over-quarter.

FRGE in the fourth quarter of FY 23 has reported the adjusted earnings per share of $-0.150, missing the analysts’ estimates for the adjusted earnings per share of $-0.100. The company had reported the adjusted revenue growth of 13 percent to $19.06 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $19.59 million.  In the quarter ended December 31, 2023, Forge Trust Custodial Cash totaled $505 million, down 20% year-over-year from $635 million.

Meanwhile, Forge Announces First Private Market Index Based on Active Trading and Liquidity Data: The Forge Private Market Index marks a new milestone for Forge and the private market more broadly, as Forge leverages its 13 years of private market trading data and experience to enable investors to better measure their investment performance and gain insights on late-stage, venture-backed companies. Forge Announces First-of-its-Kind Investable Private Market Index: Partnering with Accuidity, LLC to provide diversified exposure to late stage companies.