NASDAQ$BKKT

Bakkt Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2023 results, highlighting significant revenue increase due to Bakkt Crypto acquisition and strategic initiatives for 2024 focused on expanding client network and product offerings.

Bakkt reported a significant increase in total revenues for Q4 2023, reaching $214.5 million, driven by the acquisition of Bakkt Crypto. The company is focusing on strategic initiatives for 2024, including broadening its client network, expanding its product set, and managing expenses to drive towards profitability.

  • Total revenues for Q4 2023 significantly increased to $214.5 million, driven by the acquisition of Bakkt Crypto.
  • Operating expenses excluding certain costs decreased by 55% year-over-year, indicating improved expense management.
  • The company completed an initial closing of $42.4 million in gross proceeds from registered direct offerings to strengthen its liquidity and balance sheet.
  • Bakkt is expanding its institutional crypto capabilities with the launch of Collaborative Custody and plans for institutional trading services in Q3 2024.

Headline financials

Total Revenue

$215M

Previous: $15.6M+1275.0%
EPS (adj)

-$7.25

Previous: -$31.00+76.6%
Capital Expenditures

-$1.53M

No prior period
Net Income

-$78.7M

Previous: -$324M+75.7%
Operating Income

-$78.5M

Previous: -$330M+76.2%
Gross Profit

-$1.71M

Previous: -$112M+98.5%
Stock-Based Comp

$1.17M

Previous: $2.69M-56.6%

Revenue & EPS history

Bakkt · Revenue · Quarterly

$215M

Q4 2023+1,275%vs Q4 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 expects significant year-over-year revenue growth for full year 2024, with total revenues projected to be between $3,292 million and $5,114 million. The company also anticipates a substantial decline in operating cash flow usage.

Tailwinds

  • Full year 2024 revenues expected to be $3,292 million - $5,114 million; includes gross crypto revenues of $3,239 million -$5,057 million and net loyalty revenues of $53 million - $57 million.
  • Full year 2024 crypto costs expected to be $3,220 million - $5,027 million, in line with gross crypto revenues.
  • Full year 2024 total operating expenses excluding crypto costs, execution, clearing and brokerage fees and goodwill, intangible and long-lived assets impairments expected to be $160 million - $170 million.
  • Full year 2024 net cash used in operating activities expected to be ($58 million) – ($72 million).
  • Full year 2024 free cash flow usage (non-GAAP) expected to be ($65 million) - ($79 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 2023

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro