Gross crypto services revenues of $191.8 million and associated crypto costs and execution, clearing and brokerage fees of $190.1 million
Total revenues of $204.8 million include gross crypto revenues and net loyalty revenues
Total operating expenses of $257.6 million includes crypto costs and execution, clearing and brokerage fees and goodwill and intangible assets impairments. Excluding crypto costs and execution, clearing and brokerage fees and goodwill and intangible assets impairments, expenses were $44.2 million down 26% year-over-year
Expansion of crypto capabilities in nine new international markets expected to be active by year-end, including the United Kingdom, Hong Kong, Latin America, Singapore, Australia and Spain
Strong client execution with nearly all recently signed clients onboarded and/or activated, and significant broadening of our client network
Updated full year 2023 outlook and provided preliminary 2024 outlook
ALPHARETTA, Ga.--(BUSINESS WIRE)--Bakkt Holdings, Inc. (“Bakkt”) (NYSE: BKKT) announced its financial and operational results for the quarter ended September 30, 2023.
“This quarter we clearly demonstrated our ability to execute and strengthen our company despite highly challenging crypto market conditions,” said Gavin Michael, President and CEO of Bakkt. “Given headwinds facing the U.S. crypto industry, we made international expansion a key priority, successfully launching our crypto capabilities in Latin America and Spain, and we plan to go live in the United Kingdom, Hong Kong, Singapore and Australia by the end of this year. International markets will remain a key focus area for us with additional markets already in our pipeline. Our relentless focus on delivering for our clients enabled us to onboard and activate most of the new clients that we signed last quarter. We made strong traction broadening our crypto trading and custody network. We also further enhanced our secure custody platform, with the imminent relaunch of our custody solution followed by the expansion of the number of coins that we custody. Our leading platform and focused execution will continue to drive us to success.”
Recent Strategic Highlights
International expansion – Expanding with our clients 3.0verse and Hapi into new international markets with planned further expansion with IBEX. Our platform is currently live with certain clients in Latin America and Spain. We plan to further expand our crypto capabilities in the United Kingdom, Hong Kong, Singapore and Australia by year-end.
Crypto trading – Significant progress activating and broadening our client network including:
Crypto custody – Our highly-regarded custody solution has been enhanced with the imminent relaunch of its core platform followed by additional coin support. We made strong progress expanding our platform and client network including:
Lightning Network – As we drive crypto’s evolution towards increased utility, we are investing in the Lightning Network. We recently announced that we will be launching Lightning Services to select clients. Clients will be able to leverage these capabilities for cross-border remittances, B2B settlement, instantaneous deposits and withdrawals for trading, or global, interoperable P2P1. We will be partnering with two leading Lightning Service Providers, Lightspark and IBEX, to build out a global network of compliant on and off-ramps. Additionally, we announced that we are a founding infrastructure provider for UMA, a new Universal Money Address standard aimed at simplifying sending money.
1 Use cases are subject to applicable regulatory approvals.
Bakkt Third Quarter Financial Highlights (unaudited)
Third quarter 2023 results include Apex Crypto, which we acquired on April 1, 2023. In accordance with GAAP, we are presenting crypto services revenue and crypto costs and execution, clearing and brokerage fees on a gross basis since we are a principal in those transactions.
$ in millions |
3Q23 |
3Q22 |
Increase/ |
Revenues |
$204.8 |
$13.2 |
N.M. |
Goodwill and intangible assets impairments |
23.3 |
1,547.7 |
N.M. |
Operating expenses, excluding impairments |
234.3 |
60.4 |
N.M. |
Total operating expenses |
257.6 |
1,608.1 |
N.M. |
Operating loss |
(52.9) |
(1,594.9) |
N.M. |
Net loss |
(51.7) |
(1,592.5) |
N.M. |
Adjusted EBITDA loss (non-GAAP) |
$(21.6) |
$(30.7) |
(30)% |
Note: “N.M” denotes Not Meaningful |
Updated Full Year 2023 Outlook
We are updating our full year 2023 guidance to reflect the current market environment:
Preliminary Full Year 2024 Outlook
Webcast and Conference Call Information
Bakkt will host a conference call at 9:00 AM ET, November 14, 2023. The live webcast of Bakkt’s earnings conference call can be accessed at https://investors.bakkt.com, along with the earnings press release and accompanying slide presentation. Investors and analysts interested in participating in the call are invited to dial (833) 470-1428 or (404) 975-4839, and reference participant access code 178790 approximately ten minutes prior to the start of the call. A replay will be available promptly after the call and can be accessed by dialing (866) 813-9403 and entering the access code 984736. The replay will be available through December 11, 2023.