Netcapital (NCPL) 19 Mar 242024 Q3 Earnings call transcript

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

Thank you so much, Jenny. thank Results joining Conference and Quarter Fiscal everyone, Financial XXXX Call. morning, you Netcapital's for Third Good This is Coreen begin with Kraysler, CFO of review our Netcapital of financial results. a Inc. I will

with CEO, Kay, open Netcapital's call questions. for up remarks that, Following the will follow before his Martin we prepared

uncertainties Before we management's to results future differ statements. forward-looking these events. reasons your update even These and and to the materially current these relate achievements reason views to these the factors from becomes by available to actual of involve to like forward-looking future. no cause in known or anticipated attention update safe those results to performance implied with of in and future customary include the could growth any levels begin, reflect discussion regarding operations, risks, disclosure actual strategy, or results Netcapital unknown forward-looking may financial may other I'd liquidity new assumes and results, revise publicly events expressed or or future harbor that from information forward-looking obligation forward-looking any call to statements. Any to information. for different or Management's activity, statements if operations, statements respect be statements statements, performance materially forward-looking future

to Turning quarter. our financial results third for the

X approximately of $XX,XXX decrease raise ended fees to funding of of revenues XX, in of portal XX, XXXX, exchange ended prior portal XXXX. We down $XXX,XXX quarter. In to $XXX,XXX January capital to compared during X securities the in attributed revenue revenue $X.X months we decreased was $XXX,XXX portal to issuers A or the same to portal $X.X as $X the primarily quarter the third in decreased in in XX, for of earnings funding million, to the revenues, of primarily the when months $XX,XXX, XXXX. compared of $X.XX decrease X XXXX, also XX% portal on in compared earnings XX, in attributable the quarter revenues $X.X XX, funding million X and for QX, revenues as funding of January share noted to decrease of diluted decrease fiscal to which January per and the X of XX%, ended fees $XX,XXX a is the or quarter quarter, was third $X.X by during services the recorded of contracts months approximately equity-based for listing million by in fees portal listing The XXXX, or $X.XX to $XXX,XXX. portal million fees of revenues per months $XXX,XXX, decreased equity compared to ended for Funding that as $XXX,XXX, compared in $XX,XXX a quarter. In During prior during loss XX%, million approximately revenue platform. in the the the January funding XXXX. consisting XX% year. provide months to compared consulting fiscal listing was portal to January period reported we The fewer the ended from revenues diluted of consisting share

our and As we XX, turn CEO, cash to call of the cash XXXX, over Kay. January Martin of now had equivalents $X,XXX,XXX. I'll

period. easy-to-use, Netcapital for prior looking the our we for provides than high-quality many on listing companies with capital opportunities. optimistic with environment. businesses our Thank had are the in capital clients need remain fewer you, to investors market companies portal overall remain future quarter best capital that Coreen. but portal during and we for This drop was year current for in trying about All We revenue that a and the raise high-quality saw that the we value private an challenging our service and But quarter with proposition revenue connects funding continues resonate quarter for issuers both to investors and platform steadfast looking easy-to-access prospects. companies. We providing our funding the

the X in and our funding time While revenue increased fees of purchased revenues securities XXXX activity platform or generated prior months portal. $XXX,XXX more XX%. the that attributable XXX%, compared in by to on revenues of We increased approximately overall had fees XX%. portal XX% The of an $XX,XXX fiscal listing offering is by year on for investments an investors the in first the to increase period, the increase or dipped funding portal who than increase primarily increased by during portal

with public Another we to million offering it's that adds testament raising believe in need our in capital balance and continues and We're XX closed see growth bright grow revenues and pleased our to was point the for December, over the over a to with and our using people companies portal XXX,XXX which during working platform sheet. funding $X it to platform continued it. a strengthens The currently QX capital. itself the

solution we continue ahead accredited platform retail and to continue model, scalability a XX need our grow a allowing early-stage The nonaccredited that plan user-friendly scale key to to investors, business forward, works designed to a to companies costs. and that's driver days X of a catering our our and Moving to week. platform of of a revenues provide us is others and hours platform real-time day,

support interest questions. staff, will Netcapital And shareholders, we thank and Netcapital. Operator, As and always, to customers our as the vigilant dedicated and continued ready for we want community. investment for to of remain always, are you your

Investments. first is [indiscernible] Bill Peters coming from of Instructions] Our question [Operator

seems Do consider And crowd that listing so would fractured. use valuable so, you partner? a management funding NASDAQ if consolidating? the see market It and potential their as

that? do Martin, want to you handle

certainly that we're for in -- still Yes, it's as an Thanks industry, that our good question. early We very Yes. small relatively early question. agree industry. and relatively

$X data and to of CF combined, by the into overall that's obviously, Reg in drop that's And collected companies. is funding the that's third look billion, parties, probably Reg crowd at A private equity you companies. amount flowing the private if compared flowing think a bucket the I around capital just into industry

that very obviously, still So any multiple which in right in can partnership opportunities and there's we said, open growing, room value find now, others. industry. create competitors. that our That and it's the company, for with for we're We're ways early other certainly like discussions believe shareholders in to always we to

further any [Operator come Instructions] into seeing I'm not queue. questions

We just have it's up from And from Peters again there. another Bill [indiscernible] Investments. popped question

the ATS the company I with forgot the system? alternative does mention, system, trading stand to where

management quarter. a been over Again, this great question, Bill. for It's certainly focus

a currently is we beta, how that, describe a production are closed in environment. We in

working with we're So Templum. our ATS partner,

in invited a environment. have what be users, an of And is to environment, We set able test expect launch in to future. broadly previously production beta more in near was we the now

now, that months future, Near from realistic? is X

-- -- would I would be expect to that's certainly, to Yes. realistic. able than Within sooner we launch hope that.

further Well, again, we I any over appear back team to the hand questions any for management to in don't closing have the can queue. comments.

speaking And you, you Thank you, thank us. Jenny, to soon. for we to look forward and everyone, joining

everyone. Thanks,

call. does Thank you Coreen. This very conclude today's conference much,

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