Bakkt (BKKT)

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Bakkt (BKKT) - 2024 Q2 - Quarterly Results
2024-08-14 11:02
[Report Overview](index=1&type=section&id=Report%20Overview) Bakkt reported Q2 2024 total revenues of **$509.9 million**, showcasing strategic partnership advancements and a **43.1% year-over-year reduction** in operating expenses (ex-crypto costs) - CEO Andy Main highlighted significant partnership progress, including a letter of intent with Hidden Road, to enhance risk management and back-office functions for institutional clients on the BakktX platform[2](index=2&type=chunk) - | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Total Revenues | $509.9M | 46.7% | | Operating Expenses (ex-crypto costs) | $36.8M | -43.1% | [Key Performance Indicators](index=1&type=section&id=Key%20Performance%20Indicators) Bakkt's Q2 2024 KPIs showed mixed results, with growth in crypto-enabled accounts and assets under custody driven by higher prices, but a significant decline in transacting accounts due to reduced large customer activity - | Key Performance Indicator | Q2 2024 Value | Change (YoY) | | :--- | :--- | :--- | | Crypto enabled accounts | 6.4 million | +6.7% | | Transacting accounts | ~719,281 | -39.1% | | Notional traded volume | $672 million | +26.6% | | Assets under custody | $975 million | +47.7% | - The sharp decrease in **transacting accounts** was primarily due to reduced activity from a large customer in international markets[2](index=2&type=chunk) - Growth in **notional traded volume** and **assets under custody** was primarily driven by higher crypto asset prices, not increased user activity[2](index=2&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Bakkt's Q2 2024 financial performance demonstrated strong revenue growth, with total revenues up **46.7%**, and improved profitability, significantly narrowing operating and net losses through higher revenues and cost-cutting - | Financial Metric ($ in millions) | 2Q24 | 2Q23 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenues | $509.9 | $347.6 | 46.7% | | Operating Loss | ($22.0) | ($51.1) | 56.9% improvement | | Net Loss | ($35.5) | ($50.5) | 29.7% improvement | | Adjusted EBITDA Loss (non-GAAP) | ($17.9) | ($24.5) | 26.9% improvement | - The increase in **total revenues** was primarily driven by gross crypto services revenues from Bakkt Crypto, with net loyalty revenues also increasing **4% year-over-year** to **$12.8 million**[3](index=3&type=chunk)[11](index=11&type=chunk) - Total operating expenses increased to **$531.9 million**, mainly due to a corresponding rise in crypto costs (**$491.7 million**) and execution fees, presented on a gross basis with crypto revenues[3](index=3&type=chunk)[11](index=11&type=chunk) - Excluding crypto-related costs, operating expenses decreased **43.1% year-over-year** to **$36.8 million**, primarily due to Q1 2024 cost restructuring and headcount reductions[3](index=3&type=chunk) [Operational Highlights & Strategic Initiatives](index=2&type=section&id=Operational%20Highlights%20%26%20Strategic%20Initiatives) Bakkt strengthened its leadership by appointing Ray Kamrath as COO and enhanced institutional offerings through a licensing agreement with Crossover Markets and a letter of intent with Hidden Road, improving trading and risk management - Appointed **Ray Kamrath** as Chief Operating Officer (COO) to lead sales for the crypto business, encompassing trade, custody, and institutional offerings[4](index=4&type=chunk) - Announced a licensing agreement with **Crossover Markets** to enhance the BakktX ECN, providing faster execution and lower trading costs for institutional clients[4](index=4&type=chunk) - Signed a letter of intent with **Hidden Road** to integrate real-time risk management and back-office functionality, aiming to minimize counterparty and credit risk for institutional clients[2](index=2&type=chunk)[4](index=4&type=chunk) [Updated 2024 Guidance](index=2&type=section&id=Updated%202024%20Guidance) Bakkt updated its full-year 2024 guidance, projecting total revenues between **$2.57 billion** and **$2.83 billion**, alongside forecasts for operating expenses, cash flow, and year-end cash and securities - | Full Year 2024 Guidance | Low End | High End | | :--- | :--- | :--- | | Total Revenues | $2,568M | $2,827M | | - Gross Crypto Revenues | $2,515M | $2,770M | | - Net Loyalty Revenues | $53M | $57M | | Operating Expenses (ex-crypto costs, etc.) | $157M | $162M | | Net Cash Used in Operating Activities | ($72M) | ($79M) | | Free Cash Flow Usage (non-GAAP) | ($79M) | ($86M) | | End of Year Cash & Securities | $35M | $42M | - Guidance assumptions include revenue from existing clients based on Q2'24 metrics, a decrease in new crypto trading accounts due to international strategy realignment, and the addition of institutional clients in H2 2024[6](index=6&type=chunk) [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) Bakkt uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to supplement GAAP results, with Q2 2024 Adjusted EBITDA loss improving to **$17.9 million** from **$24.5 million** year-over-year Reconciliation of Net Loss to Adjusted EBITDA | $ in millions | 2Q24 | 2Q23 | | :--- | :--- | :--- | | Net loss | ($35.5) | ($50.5) | | Adjustments (D&A, Interest, Taxes, etc.) | $17.6 | $26.0 | | **Adjusted EBITDA loss** | **($17.9)** | **($24.5)** | FY2024 Free Cash Flow Guidance | $ in millions | Low | High | | :--- | :--- | :--- | | Net cash used in operating activities | ($72.0) | ($79.0) | | Capex | (3.1) | (3.1) | | Interest income, net | (3.9) | (4.0) | | **Free Cash Flow** | **($79.0)** | **($86.1)** | - Adjusted EBITDA is utilized by management to assess earnings before the impact of investing, financing, taxes, and other non-core operational items[13](index=13&type=chunk)
Why Fast-paced Mover Bakkt (BKKT) Is a Great Choice for Value Investors
ZACKS· 2024-06-14 13:51
Bakkt Holdings, Inc. (BKKT) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones: Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or ...
Bakkt Reportedly Considering Sale of Crypto Platform
PYMNTS.com· 2024-06-09 22:22
Digital asset marketplace Bakkt is reportedly considering putting itself up for sale. This has been a hectic year for Bakkt, which in February said in an U.S. Securities and Exchange Commission (SEC) filing that it might not be able to continue as a "going concern." "The reduction in force is a component of a broader strategic review of the company's operations that is intended to more effectively align resources with business priorities," the company said in a filing with the SEC. The Bloomberg report note ...
Despite Fast-paced Momentum, Bakkt (BKKT) Is Still a Bargain Stock
zacks.com· 2024-05-28 13:51
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, inves ...
Bakkt: Institutional Investors to Drive Growth in Crypto Trading Market
pymnts.com· 2024-05-16 02:16
Bakkt aims to take advantage of the opportunity this presents by developing a "foreign exchange-style" electronic communication network (ECN) called BakktX that will be designed as a crypto trading venue for institutions and will provide high performance, low latency and low cost, the presentation said. The BakktX trading venue will execute trades in real time, leverage Bakkt's network of liquidity relationships and have a low fee structure meant to incentivize trading volumes, per the presentation. "We bel ...
Bakkt (BKKT) - 2024 Q1 - Earnings Call Transcript
2024-05-16 02:09
Bakkt Holdings, Inc. (NYSE:BKKT) Q1 2024 Results Conference Call May 15, 2024 5:00 PM ET Company Participants Olivia Keavey - Senior Lead of Communications Andy Main - CEO Karen Alexander - CFO Conference Call Participants John Roy - Water Tower Research Trevor Williams - Jefferies Operator Greetings, and welcome to the Bakkt First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, ...
Bakkt (BKKT) - 2024 Q1 - Quarterly Report
2024-05-15 20:27
There were no participation units granted during the three months ended March 31, 2023. We made cash payments of less than $0.1 million to settle vested participation units during the three months ended March 31, 2023. • Risk-free interest rate – The risk-free rate is based on the U.S. Treasury yield curve in effect on the grant date for securities with similar expected terms to the term of Opco's incentive units. Basic earnings per share is based on the weighted average number of shares of Class A Common S ...
Bakkt (BKKT) - 2024 Q1 - Quarterly Results
2024-05-15 20:13
Bakkt Reports First Quarter 2024 Results ALPHARETTA, GA – May 15, 2024 – Bakkt Holdings, Inc. ("Bakkt" or the "Company") (NYSE: BKKT) announced its financial and operational results for the quarter ended March 31, 2024. "We made solid progress on our key priorities in the first quarter driven by robust crypto trading activity across our platforms and the successful execution of the next phase of our cost restructuring initiative. We managed to significantly reduce our net loss by approximately 53% from same ...
Bakkt Cuts 13% of Staff as Execs Depart
PYMNTS· 2024-05-06 10:46
Bakkt is cutting staff after warning earlier this year about the future of the company.The cryptocurrency platform said in a securities filing Friday (May 3) that it is laying off 28 workers, or 13% of its non-call center staff.“The reduction in force is a component of a broader strategic review of the company’s operations that is intended to more effectively align resources with business priorities,” the filing with the Securities and Exchange Commission (SEC) said.The document also notes that Charles Good ...
Why Is Bakkt (BKKT) Stock Moving Today?
InvestorPlace· 2024-04-29 12:43
Bakkt (NYSE:BKKT) stock has been on a wild ride recently as the company’s shares underwent a reverse stock split last week.That reverse stock split took place when markets closed on Friday. As a result, traders are starting to see the effects of this split on Monday morning. That’s resulted in some massive jumps and drops in price as exchanges adjust their prices.The BKKT reverse stock split has Bakkt consolidate 25 shares of its stock into a single share. The company underwent a reverse stock split to boos ...