Stack Capital Group Inc. Reports Q3-24 Financial Results
TORONTO, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Stack Capital Group Inc., ("Stack Capital" or the "Company") (TSX:STCK) today announced its financial results for the quarter ended September 30, 2024. Stack Capital reports all amounts in Canadian Dollars unless otherwise stated.
Company Commentary:
Starlink continues to aggressively expand its global reach, having now crossed over 4 million subscribers. With over 6,400 satellites now in operation, Starlink has made impressive progress in signing airlines to its satellite service, United being the most recent, joining other carriers such as Qatar Airways, Air France, Hawaiian Airlines, Air New Zealand and WestJet, to name a few.
SpaceX successfully completed its fifth Starship test flight on October 13, 2024, when, for the first time ever, it was able to ‘catch' its Super Heavy Booster rocket, safely returning it back to the Starbase launch pad. This represents a significant leap forward in decreasing the cost to bring payload to space and accelerating the pace of growth and quality of the Starlink satellite constellation.
On October 30, 2024, Stack Capital announced the $16.7 million best efforts financing. The transaction provides the Company with additional growth capital to pursue attractive opportunities currently available in growth and late-stage private businesses.
As at September 30, 2024, Book Value per Share (BVpS) of the Company was $11.05, compared with $11.24 as at June 30, 2024. The decrease in BVpS during the quarter was primarily related to a weakening US dollar compared to the Canadian dollar during the quarter. This has since reversed over the past month; applying the October 30, 2024 closing exchange rate, BVpS would increase by approximately $0.29.
Canva announced the acquisition of Leonardo.ai, a generative AI content and research startup. Leonardo's technology will integrate into Canva's Magic Studio generative AI Suite, supercharging its capabilities.
Hopper's B2B business made great strides during the quarter announcing a pair of world-class partnerships. In the case of TripAdvisor and Hopper will now power hotel bookings, provide a source of hotel inventory, along with flexible booking options for U.S. based TripAdvisor app users. The partnership with Japanese-based Sumitomo Mitsui Card Co., Ltd ("SMCC"), the largest credit card issuer in Japan - involves Hopper creating and powering SMCC's travel loyalty portal, allowing its customers to easily book flights, accommodations, and car rentals.
The underlying private company associated with Defense AI LP signed a significant contract with the US Coast Guard worth approximately US$200 million. As part of the transaction, intelligence, surveillance, and reconnaissance services are being provided via un-manned aircraft systems.
The Company's cash position as at September 30, 2024, was $10.8 million or $1.17 per share.
To date, the Company has completed ten investments contributing $10.04 per share as at September 30, 2024, into the following:
SpaceX (space exploration & communications)
Locus Robotics, Inc. (robotics)
Omio, Inc. (travel & leisure)
Canva, Inc. (graphic design)
Hopper, Inc. (travel & leisure)
Newfront Insurance, Inc. (insurance & benefits)
Prove Identity, Inc. (cyber-security)
Bolt Financial, Inc. (e-commerce)
Varo Money, Inc. (neo-banking)
Defence AI LP (military defence)
"We're extremely pleased with the $16.8 million best efforts financing this week," said Jeff Parks, CEO of Stack Capital. "This additional growth capital will allow Stack to pursue attractive investment opportunities. Looking ahead, we anticipate a return to a more normalized IPO environment in 2025 and beyond, which should benefit high-quality private companies, including some of those held within Stack today. We're encouraged with the continued growth across our portfolio companies and look forward to future liquidity events."
Q3-2024 Highlights
As at September 30, 2024, the Book Value of the Company was $101.9 million, and the Book Value per Share was $11.05. A detailed summary of Book Value per Share is as follows:
Breakdown of Book Value per Share as at September 30, 2024:
