TLDR:
Key Points of the Article:
- TriplePoint Venture Growth (NYSE: TPVG) stock dipped 2.2% in Wednesday after-hours trading after delivering worse-than-expected net investment income.
- Q2 net investment income per share of $0.33 fell short of the $0.44 average analyst estimate.
TriplePoint Venture Growth reported a decline in net investment income for Q2 as the company faced ongoing challenges in the venture-capital space. Chairman and CEO Jim Labe noted that the company remained focused on selectively increasing investment activity, despite the difficult environment.
The company’s Q2 net investment income per share of $0.33 was below analyst expectations, falling from $0.41 in Q1 and $0.53 in Q2 2023. Net asset value per share also decreased to $8.83 at the end of June 2024, compared to $9.02 at the end of March 2024.
Total investment and other income for the quarter was $27.1 million, representing a weighted average annualized portfolio yield of 15.8% on debt investments. Operating expenses increased slightly from the previous quarter, while the net increase in net assets resulting from operations was $8.6 million in Q2.
During the quarter, TriplePoint Venture Growth signed $188.4 million of non-binding term sheets with venture growth stage companies, an increase from the previous quarter. The company also recognized net realized losses on investments of $18.9 million for Q2.
