NASDAQ$BKKT

Bakkt Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported robust revenue growth and maintained a strong balance sheet.

Bakkt reported a 60% year-over-year increase in net revenues, reaching $13.6 million, driven by strong transaction revenue growth from loyalty redemption. The company maintained a strong balance sheet with over $315 million in available cash and other highly liquid assets. Updated revenue and cash usage guidance for 2022 reflects the current macroeconomic environment.

  • Net revenue increased 60% year-over-year to $13.6 million, primarily driven by strong transaction revenue growth from loyalty redemption.
  • Digital asset conversion volume increased 60% year-over-year to $205 million due to strong loyalty redemption growth, led by increased travel activity.
  • Transacting accounts increased 10% year-over-year to 681,000.
  • Operating expense increased 43% year-over-year to $57.1 million, primarily driven by increased noncash compensation expense.

Headline financials

Total Revenue

$13.6M

Previous: $8.49M+59.9%
EPS (adj)

-$1.25

Previous: -$0.64-95.9%
Free Cash Flow

-$3.9M

No prior period
Net Income

-$3.9M

Previous: -$31.9M+87.8%
Operating Income

-$43.6M

Previous: -$31.3M-39.0%
Gross Profit

-$22.6M

Previous: -$16.1M-40.2%
Cash & Equivalents

$127M

No prior period
Total Assets

$2.5B

No prior period
Stock-Based Comp

$8.02M

No prior period

Revenue & EPS history

Bakkt · Revenue · Quarterly

$13.6M

Q2 2022+59.9%vs Q2 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Bakkt · $335M total across 1 segment · Q2 2023

  • Crypto Services
    $335M

Forward guidance

Bakkt provided updated guidance for 2022, reflecting the current macroeconomic environment.

Tailwinds

  • Net revenue expected to grow to $57 million - $62 million in 2022, an increase of approximately 45% to 60% compared to $39.4 million in 2021.
  • Expect to use $135 million - $140 million of cash during 2022.
  • Updated outlook reflects an approximate 15% to 20% reduction in the second half of 2022 from levels in the first half of the year, driven by prudent expense management.
  • Strong available liquidity, with approximately $315 million of available cash and other liquid assets as of June 30, 2022.
  • Assumes macro environment that supports strong merchandise loyalty redemption volume in the seasonally strong fourth quarter.

Headwinds

  • Updated guidance due to elongated crypto decision timelines given current market environment and summer air travel supply constraints.
  • We expect to continue to invest in growing the business, and therefore expect to recognize quarterly net losses during 2022.

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 Q2 2022

Historical avgQ2 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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