Netcapital (NCPL) 27 Jul 232023 Q4 Earnings call transcript

Good morning, everybody, and welcome to the Netcapital Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Coreen Kraysler of Netcapital Inc. Coreen, over to you.

Thank you so much. Good morning, everyone, and thank you for joining Netcapital's financial results conference call for our full fiscal year 2023 ended April 30. This is Coreen Kraysler, CFO of Netcapital Inc.

Kay, call begin Kay, our the with and CEO, the Frishman, and financial call on closing our will with Founder. I a Martin up me for are we CEO; Martin Jason results remarks questions. Joining before follow open will review of

results, XXXX. down turn financial to April in versus $X $X.X future. I'll or loss statements $XX review information. may and at over debt from new we strategy, XX, Martin fiscal fiscal results at from statements, year. Equity no now at may obligation totaled these Management's forward-looking other reason, if in to Kay. securities performance generated Before in our events. million with an future in attention or CEO, million revenues include respect I'd those for to call statements assumes performance million forward-looking million income information relate liquidity expressed harbor Net results any we unknown safe We forward-looking and And update in XXXX. I'll in finally, Total year million from to fiscal fiscal to capital XXXX, XX, XXXX. fair like current of customary begin, operating up achievements, implied XXXX These a any of forward-looking now begin to to the cause operations, be of the to becomes discussion $X.X were events these paid XXXX. revise future disclosure and $X views future of could operations, your by last the operating statements. or even and uncertainties approximately with these known call million versus XX% April the our value for financial future regarding results $XX.X available reasons involve to for of different forward-looking $X.X actual anticipated materially actual forward-looking differ growth levels materially statements results activity, fiscal risks, year the to that million factors or statements. Any reflect update publicly or management's

you Thank the you, joining for again, and for call. folks thanks, Coreen,

cover. of goal Two I by this provide Alternative there ATS raising cost for value of allowing users to key to coupled with System and for to wanted Templum And capital including to secondary is platform advantages, ahead announced In expand. partnership year, is of for January trading things investors our one or digital onboarding, we with ease lower our the functionality, trade offering potential and Trading opportunities Markets. shares. This by continues our our great liquidity an competitive proposition

this creation investors on and levers. and value of business, scaling fiscal both 'XX to the on look portal targeting capital move has our continued for ahead, as our work believe to for offerings our everyone. private translate year, We value the it forward for As to make primary is, we as always we continue of been, focused primary focus X purpose proposition is markets entrepreneurs integrated our alike,

issuers. of first increasing high-quality pipeline the scale The is

we're industries we where building And So and A+ Reg a lot targeting of referral investor offerings. we're also see partnerships larger prioritizing demand.

platform. we're together fintech recent companies a raising review showed of AI example, capital almost For that the that on and across accounted for raised capital XX% net

the increasing high-quality number is scale one. issuers of So pipeline

our the of investor other community, growing transaction the network is side volumes. Second and

support agencies to offering. to fine-tuning we're driving in issuers others with their investors So in partnering to outreach, and marketing addition own our niche

functionality. that's our anticipated the then second of So the trading third, as launch thing. And I mentioned, secondary

investor the stream support potential and for Netcapital. this new growth liquidity and of communities, the expect revenue a both issuer to We to model generate

as to you always, sharing is support for So and for development interest of year. Netcapital. Operator, your look forward ready think And again, I questions. underway, details we're thank the we exciting more and through

[indiscernible] Nelson first coming Mark from Inc. is Instructions] question [Operator Your of

bit you consulting that that been your Can the and the driving of the profitability? of seen talk little as lines are we driving a of we've both some you've platform. talk you business sectors lately, well doing growth about that how about know the as Can those additional the current of profitability are business each of

answer Coreen, do you one? want that to

Thanks for question, absolutely. Sure, Mark. your

had the several this companies strength in we as we're our result year. But consulting platform a new a portfolio the year revenues strong year. year we key profitability was secondary going calendar this business the expect that driver beta expect for -- that launched. to test new and forward? drove that, of this So And had the very significant extremely the clients, of the portal that launch that we that by expect that end drive of year functionality transfer funding about excited to We we momentum announced of

contract? long-term work I that follow-up Is basically work. for consulting quarter-to-quarter? Or have a question from that is a the

an that that's have asked. question So well, interesting you

themselves So equity we work most short-term, that stakes of are with. the contracts we in companies take the but significant

with basis So for them on long-term. an we ongoing work the do

of sort So a mix.

Great. No further questions.

Thank you.

don't We -- to I'll have appear further any apologies questions. somebody there. into is jumped now Okay. Instructions] queue just [Operator

We question from have of coming Topping Robert Topping a Capital.

of quarter. answered. A the questions Congratulations couple my on were

And have in Is the it have increase then more -- Or in is trying couple concentrated platform. on? you value? XX.X, increase other equity exposure I of issue one think, how value, I that. on to equity and the on get guess And XX.X the driving X I after in an the the of that what's revenue to questions just fair securities had questions that? were it good terms that's insight other from So I that? side to

Yes.

a of we did X write the of companies. was value of our combination it up So

we values. $X.X the was had so was of valuations, that MustWatch value So up more then that that did ChipBrain added. million and portfolio offerings they at is write of additional part increase companies by was to the those that and the increased value The that write-up. majority driven from that we follow-on because higher by of by And

Got round of you speaking offering? latest of year-over-year. up it. that? a are approach How to discount I Yes. And the you that do up, you write Or are there? writing was when reduce [indiscernible] you taking

Yes.

way And the price every works, with Robert, our up. up there's or value auditor that those securities is raised an have observable which of that if to the an quarter. look valuations last to that it as the what down company have we whatever to the money is is we at So input write are, offering, then to

it. Got

you, or I said the that of some Okay. And just and few just I in. noticed into wondering, then I offering been I'm the if you're talk or not you but you how Cecilia team additional about, there's about thinking quarters that, new about at to this insight be kind And on is might categories But be or other curious some there for a just Martin thinking will -- Martin, I expanding point, someone sure now I on, know this categories, based you're are guys was day. how guess, that? is

economy the seen my we and certainly great. sectors Rob, expect. as you Yes, in some that's one, community. that's an mentioned mean, Fintech I baseball And -- early-stage we've would that the popular concentrations and in some look, I AI obviously across interesting comments, the movie,

moves spaces. now, supporting we things those we've past other other we're and companies So I don't any media right had deliberate making platform. trends. But that those on think trending are not into other feel in same our right than the And popular now

In fact, one of is mentioned the same space. MustWatch just Coreen companies in the

that point. to with So sector we're agnostic Is this industry respect answer at question, Rob? pretty your

forward cost for one kind really stock. that's secondly, any SBA you selling a understand thinking have Yes, a And that? And it's going it, coming but I working last to twofold. of helpful. understand I and thoughts Are you come and sorry, status in need last of capital question, the then for lot over sensitive sense the -- the but on trying a go of any on was I'm about Do the in. the -- any I capital was you price. to all. But do -- get have lower know One, you're of hump? do how on of And then the constant there saving forward. just kind loan? it's at to the every

number growing we're after combines investors solution, very portfolio real it's large issuers a two, that discussed, that the in X fundamentals, Coreen laser on building comments some SBA issuer on loan Sure. tapping market, on of model your the built one. Number that democratizing for that we're going I'll potential focused with question. We're differentiated we then the Robert cash believe fees So business as and fundamental the a markets, one talked that and long-term take We positions. we've that a and a equity value, right? with about. problem private

And scale. so third, it's all about

through market. Our of and others we're that possible. community secondary. And grow our we as on as as the own a we've that solution and with of to want the organic the quickly mix discussed all partnerships do growing through focused and community those extending highly is issuer activity proposition can scalable, value very things and investor It's big

competitors. for more to to We one, going than be There's have be this but room in space. winner the we want

to in want be we as those fast funded and activity accelerate well can. as so we And areas

focused we're support capital building accessing effort. and long-term what that's on So that value to

Got it.

update Okay. loan? the SBA on any And Coreen,

just is paperwork We and there no there's update. No, filed our no update.

that how Yes. I know goes.

to congratulations Okay. All you Well, right. all.

much. very you Thank

Thanks, Rob.

any further the will Okay. questions. Instructions] to don't over team [Operator have now I any management appear to back for closing comments. We hand

rest that We're beta our year forward summer. secondary you. very joining, in enjoy platform begin the the the that your liquidity everyone. Netcapital much of generated you hope offering of with for transfer offering year. pleased functionalities to calendar really We're on Thank end Thank this we we through to this to the and investors looking by revenue growth

you all. Thank

This does conference today's everybody. you, conclude call. Thank

your You your time, day. this for lines participation. you have wonderful phone may Thank disconnect a and at