Bakkt, Inc. · NYSE:BKKT
Bakkt — Q2 2024 Earnings Presentation
23 slides from Bakkt's earnings presentation, Aug 14, 2024
Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings
Slide 2: Important notice
Important notice Unless the context otherwise provides, “we,’ FORWARD-LOOKING STATEMENTS us,” “our,” “Bakkt” and like terms refer to Bakkt Holdings, Inc. and its subsidiaries. This presentation and accompanying oral presentation contains “forward-looking statements” within the meaning of Section 27A
Slide 3: Financial performance – Q2 '24 update
Financial performance – Q2 '24 update • • 2Q23 1Q24 2Q24 • • • • •
Slide 4: Strategic initiatives and partnerships
Strategic initiatives and partnerships BakktX1 Bakkt 4
Slide 5: International business strategy
International business strategy • • • • • • • 5
Slide 6: Loyalty business update
Loyalty business update • • • • • • 6
Slide 7: 2024 priorities
2024 priorities 1 Broaden client network and 2 deepen existing relationships Expand our products and solutions 3 Continued improvement of our cost structure Collaborate with our clients as partners in growth Continue growing our network of crypto native, neobank and fintech clients Execute internati
Slide 8: Financial results
Financial results
Slide 9: 2Q24 KPIs
9024 KPIs * Crypto enabled accounts of 6.4mm have continued to increase steadily QoQ * Loyalty transacting accounts and redemption volume down YoY and sequentially * Crypto trading volume down 42% sequentially, slightly below the broader market but up 48% YoY * Assets under custody of $975mm down Qo
Slide 10: 2Q24 revenues
2024 revenues Revenue by Product Loyalty m Crypto $854.6 ($M) $509.9 Crypto revenues * Gross revenues of $509.9mm driven by increase in crypto transaction volumes YoY due to Bakkt $199.4 Crypto acquisition and higher industry wide - trading activity. QoQ, revenue down on lower - crypto trading volum
Slide 11: 2Q24 operating expenses
2Q24 operating expenses • • • • 1 • • •
Slide 12: 2Q24 adjusted EBITDA (non-GAAP)
2Q24 adjusted EBITDA (non-GAAP) • $mm's 2Q24 1Q24 2Q23 Net loss $(35.5) $(21.3) $(50.5) Depreciation and amortization 0.1 0.1 3.8 Interest income, net (1.2) (1.0) (0.7) Income tax expense (benefit) 0.1 0.2 0.2 EBITDA $(36.6) $(22.0) $(47.2) Acquisition-related expenses 0.1 — 17.0 Share-based and uni
Slide 13: 2Q24 condensed P&L
2Q24 condensed P&L $mm’s except for per share amounts 2Q24 1Q24 2Q23 Crypto services $497.1 $841.3 $335.3 Loyalty services 12.8 13.2 12.3 • Total revenues $509.9 $854.5 $347.6 Crypto costs and execution, clearing and brokerage fees 495.1 837.6 334.0 Goodwill and intangible assets impairments — — — •
Slide 14: 2Q24 condensed balance sheet
2Q24 condensed balance sheet As of 6/30/24 As of 12/31/23 $mm's (unaudited) • Assets Cash & cash equivalents $47.5 $52.9 • Available-for-sale securities 13.2 17.4 Safeguarding asset for crypto 974.5 701.6 • Other current assets 122.2 110.8 Total current assets $1,157.4 $882.6 Goodwill 68.0 68.0 • In
Slide 15: Updated 2024 outlook
Updated 2024 outlook • • • • • • • • • • • • • • • • • • • •
Slide 16: Notes
Notes
Slide 17: Definitions
NOTES Definitions Crypto-enabled accounts: total crypto accounts open Transacting accounts: unique accounts that perform at least one transaction across crypto buy/sell and loyalty redemption each month. Monthly figures are de-duped for the month. Quarterly figure represents sum of all months in the
Slide 18: Adjusted EBITDA
NOTES Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure, which we define as earnings before interest, income taxes, depreciation, amortization, acquisition-related expenses, share-based and unit-based compensation expense, goodwill and intangible assets impairments, restructuring charg
Slide 19: Adjusted EBITDA reconciliation – Non-GAAP
Adjusted EBITDA reconciliation – Non-GAAP $mm's 2Q24 1Q24 2Q23 Net loss $(35.5) $(21.3) $(50.5) Depreciation and amortization 0.1 0.1 3.8 Interest income, net (1.2) (1.0) (0.7) Income tax expense (benefit) 0.1 0.2 0.2 EBITDA $(36.6) $(22.0) $(47.2) Acquisition-related expenses 0.1 — 17.0 Share-based
Slide 20: Free cash flow reconciliation – Non-GAAP
Free cash flow reconciliation – Non-GAAP FY2024 $mm's Low High Net cash used inoperating activities $ (72.0) $ (79.0) Capex (3.1) (3.1) Interest income, net (3.9) (4.0) Free Cash Flow $ (79.0) $ (86.1)
Slide 21: Statement of operations
Statement of $mm's 2Q24 1Q24 2Q23 Revenues: operations Crypto services $497.1 $841.3 $335.3 Loyalty services, net 12.8 13.2 $12.3 Total revenues 509.9 854.5 $347.6 Operating expenses: Crypto costs 491.7 832.0 331.8 Execution, clearing and brokerage fees 3.4 5.6 2.2 Compensation and benefits 22.4 24.
Slide 22: Balance sheet
As of 6/30/24 As of 12/31/23 $mm's (unaudited) Balance Assets Current assets sheet Cash and cash equivalents $47.5 $52.9 Restricted cash 34.0 31.8 Customer funds 53.3 32.9 Available-for-sale securities 13.2 17.4 Accounts receivable, net 24.4 29.7 Prepaid insurance 5.9 13.0 Safeguarding asset for cry
Slide 23: Statement of cash flows
$mm's 2Q24 1Q24 2Q23 Statement of Cash flows from operating activities: Net loss $(35.5) $(21.3) $(50.5) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: cash flows Depreciation and amortization Non-cash lease expense Share-based compensation expense 0.1 0.4