Netcapital Inc. (Nasdaq: NCPL, NCPLW), a digital private capital markets ecosystem, announced select financial results for the third quarter of fiscal year 2024 ended January 31, 2024.
Martin Kay, CEO of Netcapital Inc., said:
“Despite the challenges faced by businesses seeking capital in the current market climate, we remain optimistic about our future prospects and the strength of our funding portal. While we experienced a decline in the number of issuers listing on our platform this quarter, funding portal revenues increased by more than 70% on a year-to-date basis, and we continue to focus on the opportunities ahead. Most notably, we closed a $4 million public offering in December which adds to working capital, strengthens our financial position, and which we believe positions us for future success.”
Third Quarter Fiscal 2024 Financial Highlights
- Revenues decreased by approximately 54% year-over-year to $1.0 million, compared to revenue of $2.3 million in the third quarter of fiscal year 2023.
- Funding portal revenues decreased approximately 23% year-over-year to $179,588 compared to $231,833 in the third quarter of fiscal 2023.
- Diluted earnings per share of ($0.19) in the three months ended January 31, 2024, were down compared to diluted earnings per share of $0.33 for the same period in the prior year.
- As of January 31, 2024, the Company had cash and cash equivalents of $2,172,099
First Nine Months of Fiscal 2024 Financial Highlights
- Revenues decreased by approximately 14% year-over-year to $4.6 million, compared to revenue of $5.4 million in the first nine months of fiscal year 2023.
- Funding portal revenues increased driven by higher portal fees of approximately 152% year-over-year to $375,683 and an increase in listing fees of $48,040, or 14% compared to the first nine months of fiscal 2023.
- Diluted earnings per share of ($0.25) in the nine months ended January 31, 2024, were down compared to diluted earnings per share of $0.46 for the same period in the prior year.
- In December 2023, the Company closed a $4 million underwritten public offering.
Netcapital Inc. is a fintech company with “a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to
investors.”
The firm’s consulting group, Netcapital Advisors, “provides marketing and strategic advice and takes equity positions in select companies.”
The company’s funding portal, Netcapital Funding Portal, Inc., is registered “with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association.”