NASDAQ$BKKT
Bakkt Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Bakkt's Q4 2022 results reflected a year-over-year revenue increase driven by loyalty redemption business, alongside strategic restructuring efforts.
Bakkt Holdings, Inc. reported a 14% increase in quarterly net revenues, reaching $15.6 million, driven by transaction revenue from the loyalty redemption business. The company's focus on business simplification and expense management led to corporate restructurings expected to reduce headcount by approximately 40% by year-end 2023. Despite a net loss of $323.9 million, the company's available cash, cash equivalents, and available-for-sale securities totaled $239.4 million, providing significant liquidity.
- Net revenues increased 14% year-over-year to $15.6 million, driven by the loyalty redemption business.
- Digital asset conversion volume increased 19% year-over-year to $263 million due to loyalty redemption related to increased travel activity.
- Corporate restructurings are expected to reduce headcount by approximately 40% by year-end 2023, with $29 million in cash savings expected in 2023.
- The company announced a multi-faceted strategic alliance with Caesars Entertainment.
Headline financials
Revenue & EPS history
Bakkt · Revenue · Quarterly
$15.6M
Revenue by segment
Bakkt · $335M total across 1 segment · Q2 2023
- Crypto Services$335M—100.0%
Forward guidance
Bakkt provided its full year 2023 outlook, excluding the net revenue and expenses from Apex Crypto since the acquisition is subject to regulatory approval.
Tailwinds
- FY 2023 net revenues expected to grow to $62 million - $72 million, up ~15% - 30% from 2022.
- FY 2023 net cash used in operating activities expected to be ($100 million) - ($110 million), improving ~5% - 15% from 2022.
- FY 2023 free cash flow (non-GAAP) expected to be ($105 million) - ($115 million), improving ~25% - 30% from 2022
- Expand crypto platform with investments in custody solutions.
- Integration of Apex Crypto to expand into new international markets.
Headwinds
- Outlook estimates exclude the net revenue and expenses from Apex Crypto since the acquisition is subject to regulatory approval
- Market conditions continue to be challenging.
- The company anticipates a restructuring charge in the first quarter of 2023 of approximately $3.7 million to $4.1 million.
- Elongated timing for expected cryptoasset product activations.
- Decline in market capitalization.
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 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
| 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% |
Discussion
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