NASDAQ$BKKT

Bakkt Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported financial and operational results, including the acquisition of Apex Crypto and expansion of client base.

Bakkt reported a significant increase in total revenues, driven by the acquisition of Apex Crypto, but also experienced a rise in operating expenses, resulting in an increased operating loss. The company is focused on expanding its platform and client network, including new partnerships and international expansion.

  • Closed Apex Crypto acquisition and rebranded it to Bakkt Crypto Solutions.
  • Expanded client base with seven new clients, including in Latin America.
  • Launched a new app for Webull in approximately 40 days.
  • Formed new collaborations with Plaid and Fireblocks.

Headline financials

Total Revenue

$348M

Previous: $13.6M+2461.4%
EPS (adj)

-$4.75

Previous: -$1.25-280.0%
Free Cash Flow

-$16.8M

Previous: -$3.9M-332.3%
Net Income

-$16.8M

Previous: -$3.9M-332.3%
Operating Income

-$51.1M

Previous: -$43.6M-17.3%
Gross Profit

$15.8M

Previous: -$22.6M+170.0%
Cash & Equivalents

$84.5M

Previous: $127M-33.4%
Total Assets

$1.02B

Previous: $2.5B-59.0%
Stock-Based Comp

$4.09M

Previous: $8.02M-49.0%

Revenue & EPS history

Bakkt · Revenue · Quarterly

$348M

Q2 2023+2,461.4%vs Q2 2022
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 updated its full year 2023 guidance to reflect the impact from the acquisition of Apex Crypto and the current market environment.

Tailwinds

  • Full year 2023 revenues expected to be ~$2,132 million - ~$3,771 million; includes gross crypto revenues of ~$2,077 million - ~$3,716 million and net loyalty revenues of ~$55 million.
  • Full year 2023 crypto costs expected to be ~$2,069 million - ~$3,702 million, in line with gross crypto revenues.
  • Full year 2023 net cash used in operating activities expected to be ~($78 million) – ~($84 million). Prior full year 2023 guidance of ($100 million) - ($110 million).
  • Full year 2023 free cash flow (non-GAAP) expected to be ~($90 million) - ~($96 million). Prior full year 2023 guidance of ($105 million) - ($115 million).
  • Second half 2023 free cash flow (non-GAAP) usage outlook reflects a ~70-80% reduction from first half 2023 level reflecting our focus on prudent expense management.

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 2023

Historical avgQ2 2023

+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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