NYSE$TPVG

TriplePoint Venture Growth BDC Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced first quarter 2023 financial results, achieving a new record for portfolio fair value and declaring a second quarter distribution.

TriplePoint Venture Growth BDC Corp. reported strong first-quarter results, marked by a new record in portfolio fair value at $983 million. The company's net investment income exceeded distributions, driven by a focus on high-quality venture growth companies and strategic partnerships. Despite market volatility, TPVG maintained a disciplined approach, generating a strong return on equity and positioning itself to capitalize on shifts within the venture lending industry.

  • Signed $198.8 million of term sheets and closed $3.7 million of new debt commitments.
  • Funded $57.6 million in debt investments to 11 portfolio companies with a 14.1% weighted average annualized yield at origination.
  • Achieved a 14.7% weighted average annualized portfolio yield on total debt investments for the quarter.
  • Declared a second quarter distribution of $0.40 per share.

Headline financials

Total Revenue

$18.5M

Previous: $27.3M-32.2%
EPS (adj)

$0.53

Previous: $0.44+20.5%
Net Asset Value

$11.69

Previous: $13.84-15.5%
Gross Leverage Ratio

1.49

Previous: 0.98+52.0%
Portfolio Yield on Debt

14.7%

Previous: 15.5%-5.2%
Return on Average Equity

17.8%

Previous: 12.6%+41.3%
Free Cash Flow

$14.8M

No prior period
Net Income

$14.8M

Previous: $5.71M+160.0%
Operating Income

$2.72M

Previous: $13.5M-79.9%
Gross Profit

$18.3M

No prior period
Cash & Equivalents

$57.3M

Previous: $51.3M+11.7%
Total Assets

$1.05B

Previous: $861M+21.6%

Revenue & EPS history

TriplePoint · Revenue · Quarterly

$18.5M

Q1 2023-32.2%vs Q1 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Forward guidance

TriplePoint Venture Growth BDC Corp. anticipates that the recent developments in the venture banking sector will significantly reshape the competitive landscape of the venture lending industry. The company intends to leverage its robust platform and seasoned team to uphold the investment portfolio's quality and strategically capitalize on these shifts to foster enduring shareholder value.

Tailwinds

  • Strong demand for debt financing from venture growth stage companies.
  • Opportunity to capitalize on the changing competitive landscape in the venture lending industry.
  • Focus on high-quality venture growth companies backed by select VC partners.
  • Commitment to maintaining the quality of the investment portfolio.
  • Strategic approach to creating sustainable shareholder value over the long term.

Headwinds

  • Volatile market conditions impacting the venture banking ecosystem.
  • Potential risks associated with underwriting conditions and due diligence.
  • Uncertainty regarding the completion of term sheets and assignment to the Company.
  • Unfunded commitments may expire without being drawn, impacting future cash requirements.
  • Portfolio companies filing for bankruptcy protection.

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 2023

Historical avgQ1 2023

+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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