NASDAQ$BKKT
Bakkt Inc · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Bakkt's financial performance in Q1 2024 showed significant revenue growth driven by crypto services and a reduction in operating expenses, resulting in a decreased net loss.
Bakkt reported a significant increase in total revenues to $854.6 million, driven by the acquisition of Bakkt Crypto. The company reduced its operating expenses excluding crypto costs by 16% year-over-year, leading to a 53% improvement in net loss. Bakkt is also progressing with the launch of its Electronic Consumer Network (ECN), BakktX.
- Total revenues reached $854.6 million, including gross crypto revenues and net loyalty revenues.
- Client crypto trading activity saw a substantial increase, with notional traded volume up 324% quarter-over-quarter.
- Operating expenses, excluding crypto costs, decreased by 16% year-over-year to $48.8 million.
- Net loss improved by 53% year-over-year to $21.3 million.
Headline financials
Revenue & EPS history
Bakkt · Revenue · Quarterly
$855M
Revenue by segment
Bakkt · $335M total across 1 segment · Q2 2023
- Crypto Services$335M—100.0%
Forward guidance
Bakkt anticipates full year 2024 revenues between $3,002 million and $4,447 million, including gross crypto revenues of $2,949 million - $4,390 million and net loyalty revenues of $53 million - $57 million. They expect full year 2024 operating expenses excluding crypto costs to be $155 million - $165 million and anticipate using $58 million - $72 million in operating activities. They forecast free cash flow usage of $64 million - $78 million and expect to have $42 million - $57 million in available cash, cash equivalents, and available-for-sale securities at year-end.
Tailwinds
- Increased revenue contribution from existing clients/accounts based on observed retail trading engagement metrics.
- Expected 1x – 3x increase in crypto trading accounts vs. Q4’23.
- Activation of crypto coin pairs in 2H24 to support international retail trading demand.
- Addition of institutional clients with steady ramp-up in assets under custody in 2H’24.
- Integration of regulated entities beginning March 2024 including $5mm additional release of surety bond restricted cash collateral.
Headwinds
- Lower contribution from new clients.
- Crypto costs and ECB in line with gross crypto revenue.
- Comp expense savings from restructuring offset by increased non-cash compensation and restructuring charges.
- 5mm reduction in net contribution from crypto trading.
- Net cash used in operating activities expected to be ($58 million) – ($72 million).
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q1 2024
+4.3%
Avg return
Earnings day
+14.5%
Avg return
5 days after
+21.3%
Avg return
30 days after
47%
9 / 19 earnings
Positive
+62.5%
Q3 2023
Best reaction
-33.7%
Q4 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | +0.6% | -16.0% | -14.8% | |
| Q3 2025 | -13.0% | -23.3% | -45.7% | |
| Q1 2025 | +48.0% | +27.8% | +29.8% | |
| Q4 2024 | +13.0% | +30.4% | -8.6% | |
| Q3 2024 | -1.8% | +155.9% | +150.0% | |
| Q2 2024 | -10.8% | -9.8% | -27.1% | |
| Q1 2024 | -5.9% | +49.3% | +67.4% | |
| Q4 2023 | -16.3% | -14.5% | -33.1% | |
| Q3 2023 | +62.5% | +76.4% | +143.1% | |
| Q2 2023 | +0.7% | -4.3% | -9.2% | |
| Q1 2023 | -12.4% | -5.8% | +1.5% | |
| Q4 2022 | -13.5% | -3.2% | +25.4% | |
| Q3 2022 | +20.8% | +24.9% | -2.9% | |
| Q2 2022 | +11.1% | +2.2% | -6.3% | |
| Q1 2022 | +37.2% | +28.8% | +13.5% | |
| Q4 2021 | -33.7% | -31.8% | -25.3% | |
| Q3 2021 | -4.1% | -11.2% | +146.1% | |
| Q2 2021 | -0.4% | -0.7% | +3.3% | |
| Q1 2021 | +0.1% | +0.1% | -1.6% |
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