NASDAQ$BKKT

Bakkt Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Bakkt's Q4 2021 financial results were announced, revealing a combined net revenue increase of 45% year-over-year, driven by strong transaction revenue growth from loyalty redemption.

Bakkt reported a 45% increase in combined net revenue (non-GAAP) compared to the prior year quarter, reaching $13.7 million, primarily driven by strong transaction revenue growth from loyalty redemption. The company's available cash exceeds $390 million, providing significant growth capital.

  • Combined net revenue (non-GAAP) increased 45% over prior year quarter.
  • Transacting accounts increased 13% year-over-year, reaching 867,000.
  • Digital asset conversion volume increased 34% year-over-year, totaling $222 million.
  • Over $390 million of available cash provides significant growth capital.

Headline financials

Total Revenue

$11.5M

No prior period
EPS (adj)

-$14.25

No prior period
Net Income

-$203M

No prior period
Operating Income

-$125M

No prior period
Gross Profit

$3.04M

No prior period
Cash & Equivalents

$391M

No prior period
Total Assets

$2.41B

No prior period
Stock-Based Comp

$1.02M

No prior period

Revenue & EPS history

Bakkt · Revenue · Quarterly

$11.5M

Q4 2021
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

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

  • Crypto Services
    $335M

Forward guidance

Bakkt expects net revenue to grow to $60 million - $80 million in 2022, representing an increase of approximately 50% to 100% compared to 2021. The company anticipates using $150 million - $170 million of cash during 2022 for investments in future growth and expects to recognize quarterly net losses as it ramps up the business.

Tailwinds

  • Net revenue expected to grow to $60 million - $80 million in 2022.
  • Revenue growth represents an increase of approximately 50% to 100% compared to 2021.
  • Strong available liquidity with more than $390 million of available cash on hand as of 12/31/21.
  • Partnerships across crypto services, loyalty and payments were signed.
  • Point conversion capabilities for Wyndham Rewards customers were activated.

Headwinds

  • Expect to use $150 million - $170 million of cash during 2022.
  • Expect to recognize quarterly net losses during 2022.
  • Financial results include significant non-cash charges related to the closing of business combination with VPC Impact Acquisition Holdings (VIH).
  • Operating loss for Q4 2021 was $125 million.
  • Net loss for Q4 2021 was $202.8 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 Q4 2021

Historical avgQ4 2021

+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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