Exodus Movement Inc(US:EXOD)2025-05-12 21:30Financial Data and Key Metrics Changes - Q1 2025 revenues reached $36 million, marking a 24% year-over-year increase, and it was the second highest revenue quarter ever for the company [4][17] - Exchange process volumes for the quarter were $2.1 billion, reflecting a 62% growth year-over-year but a 7% sequential reduction [20] - Monthly active users (MAUs) were 1.6 million, down 30% sequentially and 6% year-over-year [20] - Quarterly funded users (QFUs) were 1.8 million, down 5% sequentially but up 6% year-over-year [22] Business Line Data and Key Metrics Changes - ExoSwap contributed approximately 30% of Q1 swap volume, up from 19% in Q4 [9] - ExoSwap generated 17% of Q1 revenue, indicating significant growth from partnerships and promotional campaigns [19] - The Echo product, while not a revenue generator, resulted in over 1.2 million passkeys wallets created, showcasing user engagement [7][24] Market Data and Key Metrics Changes - The price of Bitcoin declined by 12% in Q1, with Ethereum and Solana experiencing losses of 45% and 34% respectively [11] - The overall crypto market faced headwinds due to macroeconomic factors, impacting user activity and engagement [12] Company Strategy and Development Direction - The company aims to grow and diversify its services, expand partnerships, and pursue selective acquisitions [16] - There is a focus on increasing visibility through marketing and sponsorships, such as the upcoming Bitcoin conference [12][78] - The company is optimistic about regulatory clarity in the U.S. and its potential to accelerate mainstream digital asset adoption [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to benefit from the evolving regulatory landscape and the growth of digital assets [14][15] - The company remains committed to innovation and is exploring acquisition opportunities in a consolidating market [26][27] - Management highlighted the importance of stablecoins and their potential to disrupt traditional payment systems [28] Other Important Information - The company holds $238 million in digital and liquid assets, with no debt and a growing Bitcoin treasury strategy [25] - The company pays 100% of salaries in Bitcoin, emphasizing its commitment to the cryptocurrency ecosystem [13] Q&A Session Summary Question: Insights on Ledger partnership and future partnerships - Management acknowledged the significance of the Ledger partnership and indicated ongoing discussions with other major players, emphasizing the long-term growth potential from additional partnerships [33][36] Question: ExoSwap volume and revenue contributions - Management noted that ExoSwap's performance was boosted by a successful promotional campaign and discussed the challenges in forecasting short-term volumes due to partner-driven marketing efforts [40][42] Question: Details on new partnerships and their focus - Management described the mix of partnerships, highlighting the demand for cross-chain swaps and the growing interest in stablecoins among traditional finance players [46][50] Question: Commercialization of Echo product - Management clarified that Echo is currently a demo product focused on user engagement and gamification, with no immediate plans for commercialization [55][59] Question: Take rates from exchange process volumes - Management discussed the impact of the Ledger partnership on brand trust and the ongoing efforts to improve take rates while acknowledging the revenue share model of ExoSwap [63][65]