Netcapital Inc., a leading digital private capital markets ecosystem, has announced its financial results for the first quarter of fiscal year 2024, which ended on July 31, 2023. The company reported strong performance, with revenue more than doubling.
Martin Kay, CEO of Netcapital Inc., expressed his excitement about the successful quarter, stating, “We are delighted to announce a very strong quarter for our funding portal, delivering a more than doubling of revenue.” He also highlighted the company’s strategic focus on developing the necessary software to enable issuers and investors to access a registered alternative trading system (ATS) for secondary trading of securities. Kay revealed that internal testing of the secondary trading platform features has commenced, and the company is optimistic about the potential of this liquidity model to support the growth of its investor and issuer communities.
The first quarter of fiscal year 2024 saw a revenue growth of 13% compared to the same period last year, reaching $1.5 million. Revenue from the funding portal services increased by around 110% year-over-year, amounting to $375,856 in the three-month period ending on July 31, 2023, compared to $178,500 in the corresponding period in 2022.
However, Netcapital Inc. reported a net loss of approximately $492,000 during the three months ending on July 31, 2023, in contrast to a net income of approximately $65,000 in the same period last year. The diluted loss per share was $0.07, compared to diluted earnings per share of $0.02 in the previous year. The net loss was primarily driven by increased marketing spend and higher payroll expenses, including $483,351 in stock-based compensation during the three months ending on July 31, 2023, compared to $32,953 in the same period in 2022.
Netcapital Inc. is a fintech company that provides a scalable technology platform for private companies to raise capital online. It also offers private equity investment opportunities to investors. The company’s consulting group, Netcapital Advisors, provides marketing and strategic advice and holds equity positions in select companies. Netcapital Funding Portal, Inc., the company’s funding portal, is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).
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