Bakkt Q3 2024 Earnings Report
Key Takeaways
Bakkt's Q3 2024 results showed a net loss improvement of 87.8% year-over-year, driven by increased trading volumes and the upcoming rollout of their institutional trading platform, BakktX. Total revenues increased, primarily due to gross crypto services revenues, while operating expenses decreased excluding crypto costs. The company is also investigating a possible wind-down of Bakkt Trust to focus on core business areas.
Crypto enabled accounts grew to 6.5 million, up 6.7% year-over-year.
Notional traded volume increased 30.1% year-over-year to $476.5 million.
Assets under custody increased 85.5% year-over-year to $938.7 million.
Net loss improved 87.8% year-over-year to $6.3 million, benefiting from a $20.0 million gain on the fair value of warrant liability.
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Bakkt Revenue by Segment
Forward Guidance
Bakkt provided full year 2024 guidance for revenue from loyalty, gross crypto revenue, cash used in operating activities, and end of year available cash.
Challenges Ahead
- Full year 2024 revenue from loyalty expected to be approximately $49 million - $50 million, lower than prior guidance primarily due to lower transaction revenue.
- Full year 2024 gross crypto revenue, less crypto costs and execution, clearing and brokerage costs, expected to be at the lower end of $10 million - $15 million range primarily due to timing of activations.
- Full year 2024 cash used in operating activities expected to be ($84 million) – ($89 million) due to reduction in revenue and higher expenses.
- Full year 2024 free cash flow usage (non-GAAP) expected to be ($91 million) – ($96 million) due to reduction in revenue and higher expenses.
- End of year available cash, cash equivalents and available-for-sale securities of $34 million – $39 million.