NYSE$TPVG

TriplePoint Venture Growth BDC Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter 2020 financial results with net investment income of $0.41 per share and a record investment portfolio of $713.2 million as of March 31, 2020.

TriplePoint Venture Growth BDC Corp. reported financial results for the first quarter ended March 31, 2020, with a net investment income of $0.41 per share. The company's investment portfolio reached a record $713.2 million. A second quarter distribution of $0.36 per share was declared.

  • Earned net investment income of $12.2 million, or $0.41 per share.
  • Closed $102.6 million of new debt commitments to venture growth stage companies and funded $78.8 million in debt investments to 11 portfolio companies.
  • Achieved a 12.7% weighted average annualized portfolio yield on total debt investments for the quarter.
  • Net asset value was $395.0 million, or $12.85 per share, at March 31, 2020.

Headline financials

Total Revenue

$20.8M

Previous: $17.5M+19.2%
EPS (adj)

$0.41

Previous: $0.40+2.5%
Net Asset Value

$12.85

No prior period
Gross Leverage Ratio

1.02

No prior period
Portfolio Yield on Debt

12.7%

No prior period
Return on Average Equity

12.2%

No prior period
Net Income

-$5.12M

No prior period
Operating Income

$12.2M

No prior period
Cash & Equivalents

$84.7M

No prior period
Total Assets

$803M

No prior period

Revenue & EPS history

TriplePoint · Revenue · Quarterly

$20.8M

Q1 2020+19.2%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The Company expects that COVID-19 may have a material adverse impact on future net investment income, the fair value of the Company’s portfolio investments, and the results of operations and financial condition of the Company and its portfolio companies.

Tailwinds

  • The Company received $10.0 million of principal prepayments generating approximately $1.1 million of accelerated income
  • TPC’s direct originations platform entered into $46.5 million of additional non-binding signed term sheets with venture growth stage companies
  • The Company closed $5.4 million of additional debt commitments
  • The Company completed an underwritten offering of 5.0 million shares of common stock
  • The Company completed a private offering of $70.0 million in aggregate principal amount of 4.50% Notes due March 2025

Headwinds

  • COVID-19 pandemic has had adverse consequences for the business operations of some of the Company’s portfolio companies
  • COVID-19 has adversely affected, and threatens to continue to adversely affect, the Company’s operations and the operations of its investment adviser
  • The Company cannot reasonably estimate the full impact of COVID-19 on its financial condition, results of operations or cash flows in the future
  • The Company expects that it may have a material adverse impact on future net investment income
  • The Company expects that it may have a material adverse impact on the fair value of the Company’s portfolio investments

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.3%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+1.6%

Avg return

30 days after

73%

35 / 48 earnings

Positive

+17.5%

Q1 2020

Best reaction

-11.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+2.0%-2.2%
Q4 2025+2.1%-1.7%-3.4%
Q3 2025+2.7%+4.7%+21.8%
Q1 2025+7.5%+13.3%+22.5%
Q4 2024-5.4%-6.2%-21.0%
Q3 2024+15.6%+21.9%+26.7%
Q2 2024-8.3%-13.9%-8.1%
Q1 2024-0.9%-0.7%-0.2%
Q4 2023-11.8%-9.4%-14.4%
Q3 2023+4.3%+7.4%+11.3%
Q2 2023-11.3%-10.2%-11.3%
Q1 2023-10.6%-6.6%-1.6%
Q4 2022+3.5%+7.2%+1.8%
Q3 2022-0.8%+1.6%+2.0%
Q2 2022+4.1%-2.1%-6.4%
Q1 2022+2.6%-5.0%-4.8%
Q4 2021+5.0%+3.0%+10.4%
Q3 2021+2.8%+8.1%-0.7%
Q2 2021-1.8%-1.5%-2.6%
Q1 2021-2.4%-5.3%+0.2%
Q4 2020-0.3%+0.3%+1.5%
Q3 2020+5.8%+7.2%+18.3%
Q2 2020+7.4%+12.4%+0.6%
Q1 2020+17.5%+21.5%+63.1%
Q4 2019+5.6%-10.3%-61.5%
Q3 2019-10.5%-13.0%-15.8%
Q2 2019+2.6%-0.4%+7.3%
Q1 2019+2.6%+2.9%-4.1%
Q4 2018+3.6%+5.8%+8.8%
Q3 2018+2.2%+0.6%-4.8%
Q2 2018+0.8%+2.0%-4.0%
Q1 2018+3.6%+6.0%+3.8%
Q4 2017+4.6%+4.0%+4.8%
Q3 2017+1.9%+1.5%-3.7%
Q2 2017+7.3%+6.8%+4.4%
Q1 2017+1.5%+1.2%-2.4%
Q4 2016+2.4%+6.4%+4.5%
Q3 2016+3.8%+9.9%+20.3%
Q2 2016+0.8%+0.3%+1.6%
Q1 2016-1.9%
Q4 2015+0.8%
Q3 2015+0.7%
Q2 2015+0.9%
Q1 2015-2.6%
Q4 2014+0.7%
Q3 2014+0.9%
Q2 2014+0.4%
Q1 2014+0.4%

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