Bakkt (BKKT) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 reached $1,797.3 million, a 737.9% increase year-over-year, while full year revenue was$ 3,490.2 million, up 347.4% from the previous year[4][11]. - Crypto services revenue for FY 2024 was $3,441.1 million, up from$ 727.0 million in FY 2023, marking a growth of 373%[33]. - Net loss for Q4 2024 improved by 48.7% to $40.4 million, while the full year net loss decreased by 54.2% to$ 103.4 million[5][13]. - Adjusted EBITDA loss for Q4 2024 was $6.4 million, a 66.3% improvement year-over-year, and for the full year, it was$ 64.2 million, down 31.6%[5][13]. - Operating loss for Q4 2024 was $11.7 million, an improvement compared to a loss of$ 78.5 million in Q4 2023[33]. - Net loss attributable to Bakkt Holdings, Inc. for FY 2024 was $46.7 million, a reduction from$ 74.9 million in FY 2023[33]. - Adjusted EBITDA loss for FY 2024 was $64.2 million, an improvement from a loss of$ 93.9 million in FY 2023[40]. Trading and Account Growth - Notional crypto trading volume in Q4 2024 was $1,777.6 million, representing a 778% increase year-over-year and a 465% increase sequentially[6][18]. - Crypto enabled accounts grew to 6.7 million, an 8.1% increase year-over-year, and total transacting accounts increased by 6.5% to approximately 974,429[6]. - Assets under custody increased by 228.1% year-over-year to$ 2,301.9 million, driven by higher trading prices for crypto assets[6]. Strategic Initiatives - The company signed a definitive agreement to divest its Bakkt Trust custody business to Intercontinental Exchange for $1.5 million, which is expected to streamline operations and reduce annual operating expenses by$ 3.8 million[12][14]. - BakktX trading infrastructure has been successfully integrated, enhancing efficiency and scalability, enabling the company to handle increased trading volumes with 100% uptime[19]. - The company is exploring strategic alternatives for its Loyalty business segment, including a potential sale or wind-down, to focus on core crypto offerings[15]. Future Outlook - For Q1 2025, Bakkt expects total revenues between $1,043 million and$ 1,300 million, with gross crypto revenues projected at $1,035 million to$ 1,290 million[22]. Cash and Assets - Cash and cash equivalents at the end of Q4 2024 totaled $153.7 million, compared to$ 118.5 million at the end of Q4 2023[36]. - Total assets as of December 31, 2024, were $269.4 million, slightly up from$ 265.3 million as of December 31, 2023[31]. - Total liabilities increased to $206.5 million as of December 31, 2024, compared to$ 129.6 million as of December 31, 2023[31]. - Customer funds payable rose significantly to $88.6 million in Q4 2024, up from$ 32.9 million in Q4 2023[31]. - The company reported a net cash provided by operating activities of $31.4 million in Q4 2024, contrasting with a net cash used of$ 6.8 million in Q4 2023[35].