The following is a summary of the Netcapital Inc. (NCPL) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Netcapital Inc. reported a significant decrease in revenue, down 42% to $4,951,435 from $8,493,985 in the previous fiscal year.

• The company reported an operating loss of $3,442,388 for fiscal 2024, compared to an operating income of $2,271,876 in fiscal 2023.

• Net loss worsened to $4,986,317, with a loss per share of $0.41, down from a net profit of $2,954,972 and earnings per share of $0.63 in fiscal 2023.

• Revenues from portal fees increased by 109%, attributing largely to the increased activity on the Netcapital Funding Portal.

Business Progress:

• Successfully introduced a 1% fee on equity raised by issuers using the funding portal, leading to the issuance of equity securities from 30 clients.

• Launched a beta version of a secondary trading platform in partnership with Templum Markets and applied for a broker-dealer license for Netcapital Securities to expand services and potentially raise larger amounts from investors.

Opportunities:

• The launch of the secondary trading platform offers potential for improved liquidity and broader access to retail investors.

• Expansion of services through Netcapital Securities as a broker-dealer could open up opportunities with Reg A+ and Reg D offerings, significantly increasing potential capital raising capabilities.

Risks:

• The substantial decrease in consulting services revenue, due to fewer companies served, highlights a possible risk in client dependence and market dynamics.

• Potential operational and strategic risks in transitioning to new financial offerings and platform expansions, as indicated by past operational losses.

More details: Netcapital IR

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