Strong starts to the year
March 6, 2023
Another month in the books and another month of further validation of the diversity of revenue streams we have at our disposal. Revenue came in at [ ] and more importantly, we had initially forecasted a [ ]d increase month over month from Jan to Feb in terms of revenue and we were still able to meet these lofty targets. As a result, we're coming in ahead of our YTD forecast of $[ ]K in revenue by [%, the first time we've ever been able to meet and exceed targets on a consistent basis.
Sources of revenue came from all fronts, including some new line items that were unexpected for the better.
We continue to be able to monetize our existing borrowers through Borrower platform fees but given the downsize in a few recent deals because of less demand, we earned less than forecast on this front and we should not rely on this as a core revenue stream going forward.
We added a new blended note tailored for a publicly listed company which help boost advisory fees from Investors.
The Underwriter revenue streams continue to deliver for us this year as we find new opportunities to monetize them compared to what we had forecasted. Platform fees, data and surveillance fees, co-underwriting fees, all have been consistent revenue drivers for us this year. What has been unexpected is the addition of syndication fees which we did not expect to be realized until next month. New deals that have closed from [ ] have helped push Underwriter revenue to the point where it is already a significant portion of our total revenue mix.
In what was a completely unexpected opportunity that we were able to capitalize on, we helped facilitate a sale of several positions from an investor which led to fees we were able to charge per position as well as being able to net a spread against the deals. The ability to support secondary transactions like this has the potential to be a larger portion of our revenue stream over time.
We have a lot to be proud of for how these last two months have started and how closely we've been hitting our revenue metrics. Every month is going to be different, each month we'll face another unique set of challenges and March is no different. More borrowers, more underwriters, more investors is what it's going to take to hit our March numbers where we've forecasted an 18% increase in technology revenues from February, going from $238K to $281K. Let's focus, figure out where efficiencies can be had, and push the envelope on getting any and all investor capital into the door. We got this 💪
