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Dec 31, 2024
Bakkt Q4 2024 Earnings Report
Bakkt reported its Q4 2024 results with a significant increase in revenue driven by crypto trading, alongside a narrowed net loss and improved adjusted EBITDA.
Key Takeaways
In Q4 2024, Bakkt achieved total revenue of $1.80 billion, marking a 737.9% year-over-year increase, primarily fueled by record crypto trading volumes. The company reported a net loss of $40.4 million, a notable improvement from the previous year, and an adjusted EBITDA loss of $6.4 million. Operating losses also narrowed significantly as the company focused on its core crypto services and continued strategic realignment.
Q4 revenue surged 737.9% year-over-year to $1.80 billion, driven by robust crypto trading activity.
Net loss narrowed to $40.4 million, a 48.7% improvement from the previous year.
Operating loss improved 85.1% year-over-year to $11.7 million.
Crypto-enabled accounts grew to 6.7 million, up 8.1% year-over-year.
Revenue by Segment
Forward Guidance
For Q1 2025, Bakkt expects total revenues between $1.03 billion and $1.28 billion, with continued focus on crypto trading and stablecoin partnerships.
Positive Outlook
- Anticipating strong crypto trading momentum into 2025.
- Strategic partnership with DTR to expand into stablecoin payments.
- Streamlining operations by divesting the Bakkt Trust business.
- Ongoing institutional adoption supports growth potential.
- Improved infrastructure with BakktX integration enhancing scalability.
Challenges Ahead
- Loss of Webull contract, representing 74% of crypto revenues in 2024.
- Upcoming expiration of the Bank of America loyalty services agreement.
- Continued operating losses expected as restructuring efforts persist.
- High dependency on key clients remains a risk.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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