Bakkt I (BKKT) Q4 2024 earnings summary

Executive summary

• Underwent a strategic transformation to a pure-play crypto infrastructure company, including a new co-CEO structure, divestiture of Bakkt Trust Company, and planned exit from the loyalty segment, with a commercial partnership with DTR to enter the cross-border stablecoin payments industry.

• Q4 2024 revenue grew 6.6% year-over-year to $17.8 million, with net loss improving 48.7% to $40.4 million and adjusted EBITDA loss narrowing 66.3% to $6.4 million.

• Full year 2024 revenue surged 347.4% year-over-year to $3,490.2 million, driven by increased crypto trading volumes; net loss improved 54.2% to $103.4 million.

• Webull, representing 74% of 2024 crypto revenue, and Bank of America, 16% of loyalty revenue, will not renew contracts in 2025, impacting future revenue.

• Significant increase in crypto trading volume (up 778% year-over-year in Q4), with 6.7 million crypto-enabled accounts and assets under custody up 228.1% year-over-year.

Financial highlights

• Q4 2024 total notional trading volumes reached $1.78 billion, up 465% sequentially and 778% year-over-year.

• Q4 2024 gross crypto revenues reached $1,797.3 million (net $6.6 million); loyalty net revenues were $11.1 million, down 26.5% year-over-year.

• Q4 net loss: $40.4 million; full year net loss: $103.4 million; Q4 adjusted EBITDA loss: $6.4 million; full year adjusted EBITDA loss: $64.2 million.

• Q4 operating loss: $11.7 million (Q4 2023: $78.5 million); full year operating loss: $92.9 million (FY 2023: $227.9 million).

• Assets under custody at year-end reached $2.3 billion, up 145.2% sequentially and 228.1% year-over-year.

Outlook and guidance

• Moving to quarterly guidance due to crypto market volatility.

• Q1 2025 total revenues expected between $1.03 billion and $1.3 billion; gross crypto revenues $1.02 billion–$1.29 billion; net loyalty revenues $8.5–$9.9 million.

• Projected Q1 ending cash balance of $22 million–$26 million, possibly including a $5 million draw from the ICE credit line and excluding proceeds from Bakkt Trust sale.

• Guidance excludes potential DTR partnership revenues and custody divestiture proceeds.