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Dec 31, 2023
Bakkt Q4 2023 Earnings Report
Announced fourth quarter and full year 2023 results, highlighting significant revenue increase due to Bakkt Crypto acquisition and strategic initiatives for 2024 focused on expanding client network and product offerings.
Key Takeaways
Bakkt reported a significant increase in total revenues for Q4 2023, reaching $214.5 million, driven by the acquisition of Bakkt Crypto. The company is focusing on strategic initiatives for 2024, including broadening its client network, expanding its product set, and managing expenses to drive towards profitability.
Total revenues for Q4 2023 significantly increased to $214.5 million, driven by the acquisition of Bakkt Crypto.
Operating expenses excluding certain costs decreased by 55% year-over-year, indicating improved expense management.
The company completed an initial closing of $42.4 million in gross proceeds from registered direct offerings to strengthen its liquidity and balance sheet.
Bakkt is expanding its institutional crypto capabilities with the launch of Collaborative Custody and plans for institutional trading services in Q3 2024.
Revenue by Segment
Forward Guidance
Bakkt expects significant year-over-year revenue growth for full year 2024, with total revenues projected to be between $3,292 million and $5,114 million. The company also anticipates a substantial decline in operating cash flow usage.
Positive Outlook
- Full year 2024 revenues expected to be $3,292 million - $5,114 million; includes gross crypto revenues of $3,239 million -$5,057 million and net loyalty revenues of $53 million - $57 million.
- Full year 2024 crypto costs expected to be $3,220 million - $5,027 million, in line with gross crypto revenues.
- Full year 2024 total operating expenses excluding crypto costs, execution, clearing and brokerage fees and goodwill, intangible and long-lived assets impairments expected to be $160 million - $170 million.
- Full year 2024 net cash used in operating activities expected to be ($58 million) – ($72 million).
- Full year 2024 free cash flow usage (non-GAAP) expected to be ($65 million) - ($79 million).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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