Bakkt I (BKKT) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue reached $509.9M, up 46.7% YoY, driven by crypto services growth and the Bakkt Crypto acquisition.

• Net loss narrowed 29.7% YoY to $35.5M; adjusted EBITDA loss improved 26.9% to $17.9M.

• Operating expenses (excluding crypto costs and fees) fell 43% YoY to $36.8M due to cost restructuring.

• Crypto-enabled accounts grew to 6.4M, while transacting accounts declined due to reduced activity from a large international customer.

• Significant events included the first BakktX ECN trade, a Crossover Markets partnership, and a 1-for-25 reverse stock split.

Financial highlights

• Q2 2024 revenue was $509.9M (Q2 2023: $347.6M); gross crypto services revenue was $497.1M, loyalty revenue $12.8M.

• Total operating expenses were $531.9M, mainly from $495.1M in crypto costs.

• Net loss per share was $(2.67), improved from $(4.69) in Q2 2023.

• Ended Q2 with $60.7M in cash, cash equivalents, and available-for-sale securities.

• Free cash flow usage for FY2024 expected at $79M–$86.1M.

Outlook and guidance

• 2024 revenue guidance is $2,568M–$2,827M; gross crypto revenue $2,515M–$2,770M; net loyalty revenue $53M–$57M.

• Operating expenses (excluding crypto costs and related fees) expected at $157M–$162M.

• Year-end cash projected at $35M–$42M.

• Guidance reflects lower new crypto trading accounts and international strategy realignment.

• Operating cash flow usage for 2024 expected at $72M–$79M.