Netcapital (NCPL) 15 Sep 232024 Q1 Earnings call transcript

Good day and welcome to the Netcapital First Quarter Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Coreen Kraysler. The floor is yours.

Thank you so much, Kelly. thank our joining year first July XXXX. and conference financial XXXX, everyone, XXst, for call quarter morning, you Netcapital's for results ended Good of fiscal

begin CFO and results CEO, for we Martin with Inc. This open our follow our of will remarks Coreen review of Kraysler, I is questions. will his with Kay up a financial call Netcapital before the

include like customary information. I'd begin, to statements. may Safe Management's disclosure we attention the call Before to forward-looking Harbor regarding discussion forward-looking your

These and and to actual involve that by statements activity, different events financial future of or or cause levels materially performance relate to implied unknown these future achievements from forward-looking performance and results, or any results may other statements. known to be uncertainties future risks, factors expressed

reflect these current results even update or for events. those statements, Netcapital to available if respect to statements differ materially forward-looking growth future. liquidity publicly forward-looking new in anticipated to forward-looking actual the revise obligation from in reasons with management's update and these operations, strategy, becomes views or information statements the assumes future results operations, could of reason Any any no

financial our to quarter. for the Turning first results

this was revenues This the to by the in XXXX. several large three as about the are XXXX to during three XXst, funding compared XXst, in We increased issuers months by period. July strength portal $XXX,XXX months the excited the the success Netcapital funding by portal $XXX,XXX more momentum ended XXX% shown quarter driven than of ended July

loss approximately quarter loss in approximately of per diluted reported million share income compared net to earnings of fiscal to $XXX,XXX $X.XX in per quarter was the XXXX compared $X.X $X.XX. first of $XX,XXX revenues diluted million of year-over-year to of net and compared $X.X Total We first company year a share XXXX. the fiscal revenue grew the XX% of to

that salary increased net three in three the the to for XXXX stock-based months was months marketing primarily XX, $XXX,XXX ended $XX,XXX expenses XXXX. noncash driven July compensation The to first by July in ended loss quarter and compared as XXst,

the Martin turn call now I'll to our Kay. over CEO,

Thank Coreen. you,

in value in fiscal our I'd by of drive call, conference and integrated begin differentiated to confidence the investors reasserting Netcapital's offerings As year creation XXXX our proposition our like value entrepreneurs ability and I stated results for alike. to in

investors now, to point in funding portal, is both a Right on users And of for benefit our a pool stand XX quarter. seeking capital communities, functionality, platform. raising than sizable our currently of has more issuers we have forthcoming trading from There key funding. our of and XXX,XXX first companies are launch been focal investors companies these of which which the secondary

trading On to ability from secondary the to shares. issued the users side, transfer course, on for been designed of Securities be investor of of straight is, specifically liquidity as the and shares of the investors free restrictions. platform potential Netcapital common are tradable provide to always purpose trade have

only other bonds, securities. allow offering believe this makes Netcapital common base attractive or issuers tokens funding Netcapital investors. issuers sell of portals, coupled other to trading hybrid revenue strategy instruments, Unlike secondary We equity to with doesn't more debt,

be of From issuers who've is always by lower both verified those those value. competitors. and Netcapital has liquidity for been for and added our On a issuer of trading issuers, as benefit for capital, our company automated top platform seeking and experience, should the by solutions, and increased compelling another raise increased issuer the differentiated pathway providing that, cost secondary potential standpoint, our superior ease used to those of onboarding,

week. we internal began feature last new is liquidity and The essentially complete testing

of a of launch December. full a we limited a number the to and step, expect the a we secondary for of end investors feature to next beta hope As version rollout trading by

I've summary, in a we and competitive represent development the in product achievements the audiences So benefit serve. discussed for ultimately endeavors stronger technology and milestone

interest Netcapital. you we of thank for always, your As And and for questions. support operator, are ready

Certainly. question coming your with Please Mathison open question. Michael first Instructions] is is questions. Singular Research. The Your from [Operator now floor pose for

line Your live. is

Hi, Michael. Thanks for joining the call.

you for looks lot quarter, your Thank year, everyone. you having going averaged morning, and XX% growth. forecast year-over-year revenue Good Good My news. thanks question interesting me. Last of really a at forward.

quarters You growth. had four sequential of straight

normal, be a you at quarter, I around of the we This kind that's going year-over-year. Should of as that forward? kind looking magnitude growth XX%, believe, had rate that new

question. much Michael, asking very you So, Thank great for that.

is As excited which you by be summer say portal the for guidance. quarter I XXX% slower forward-looking the we know, we we a represents, What would provide any why especially primarily month than to in months, more saw funding us. or this growth the lot were revenues. that That's a don't tend

cash So on I what that's that frame engine going company. our help you about we you revenues saw portal would to the the focus forward because the growth of in funding our really think

All right.

going near that. of you're of launching So on what's to congratulations in kind trading, on secondary portal, speaking very the

Thank you.

revenues? Any mean forecast that what be for and of when live will you'll

this and for feature what limited we that secondary testing end about trading feature secondary transfer yet. talked a of currently hope in a investors. up a we told on for exciting And the the development which year. number really then open by beta to internally, investors earlier revenues The next us to we live are we have calendar what of said we the to So haven't the have will us. impact is And step is version our be comments

Good. Thank questions. my you for taking

you Thank so much.

your [indiscernible] Your next Mark Capital. question pose with from is Please question. Nelson

live. Your line is

taking for you the Thank call.

For of available that have the secondary be your launch? how a on guys do market will in sense listings at you many December, launch

you to jump want in here? do Martin,

Thanks take can Coreen. that, question. Yes, much for I so the

beginning we've I be agreement all I raised secondary. disclosed are that elsewhere specifically have our platform would And that have the we mentioned issuers issued as on to sign so part XXX the of in platform. always We comments, that successfully than our think -- more for. in up have designed securities tradable we've from That's signed for had companies who and up my

the So that's ultimately goal.

ATS with Templum, on platform. the that introduce secondary. will smaller our we We gradually the trading and those begin the with is number them, platform partner, will working into securities Working system we're with with working who a alternative

about will haven't traded going obviously been are more them by all be be But and specific guess, of we how when. eligible platform trading is, many to So any point the forward. that I on the ultimately

Great. much. Thank you very

Mark? Thank that Does your question, you. answer

Yes, it does.

are There Instructions] queue. in no questions [Operator remaining

follow-up. Great. it looks for that true? oh like have Mathison much, Thank you everyone might so a Is -- Michael

Yes, he does.

Michael, him I'll one place is Just moment. in. live. your line

one wanted cash about flow. just ask to permitting for you I question. you Thank more

flow You expect cash quarters? would were negative coming can quarter operating we And financed? how a so the last that be that for

Right.

in would we're pleased flow unreasonable to success what expect seeing that the of both our a currently that this that of not common have generating to very, platform. strong financing things, average to on that very in very investment So and to we're is the said quarter of the given portal one in position we we funding the negative the increased the us see growth, operating activity the do that overall, terms seeing portal the is cash in of are be larger in time growth that about it and we are issuers size the from But financings saw we flow. cash again, future And time.

to just expectation. you. I confirm that Good. wanted Okay. Thank

Yes. All right.

additional no There's queue. questions in

the few you. a Thank looking We in and conferences seeing appreciate interest at of you Micro to ThinkEquity investors coming We much, very really for are so specifically both us. our LD Thank October. everyone Conference forward your up, the also joining and stock. support Conference much

So then. the conference Thank speaking with talk you. we if look not in to conferences. person we'll at Bye-bye. forward And you to call investors on next these

Thank you.

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

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