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Dec 31, 2021
Bakkt Q4 2021 Earnings Report
Bakkt's Q4 2021 financial results were announced, revealing a combined net revenue increase of 45% year-over-year, driven by strong transaction revenue growth from loyalty redemption.
Key Takeaways
Bakkt reported a 45% increase in combined net revenue (non-GAAP) compared to the prior year quarter, reaching $13.7 million, primarily driven by strong transaction revenue growth from loyalty redemption. The company's available cash exceeds $390 million, providing significant growth capital.
Combined net revenue (non-GAAP) increased 45% over prior year quarter.
Transacting accounts increased 13% year-over-year, reaching 867,000.
Digital asset conversion volume increased 34% year-over-year, totaling $222 million.
Over $390 million of available cash provides significant growth capital.
Forward Guidance
Bakkt expects net revenue to grow to $60 million - $80 million in 2022, representing an increase of approximately 50% to 100% compared to 2021. The company anticipates using $150 million - $170 million of cash during 2022 for investments in future growth and expects to recognize quarterly net losses as it ramps up the business.
Positive Outlook
- Net revenue expected to grow to $60 million - $80 million in 2022.
- Revenue growth represents an increase of approximately 50% to 100% compared to 2021.
- Strong available liquidity with more than $390 million of available cash on hand as of 12/31/21.
- Partnerships across crypto services, loyalty and payments were signed.
- Point conversion capabilities for Wyndham Rewards customers were activated.
Challenges Ahead
- Expect to use $150 million - $170 million of cash during 2022.
- Expect to recognize quarterly net losses during 2022.
- Financial results include significant non-cash charges related to the closing of business combination with VPC Impact Acquisition Holdings (VIH).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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