Bakkt, Inc. · NYSE:BKKT
Bakkt — Q1 2022 Earnings Presentation
24 slides from Bakkt's earnings presentation, May 12, 2022
Slide 1: First Quarter 2022 Earnings
First Quarter 2022 Earnings May 12, 2022
Slide 2: Important notice
Important notice Unless the context otherwise provides, “we,” “us,” “our,” “Bakkt” and like terms refer (i) prior to October 15, 2021 (the closing date of the business combination), to Bakkt Opco Holdings, LLC (f/k/a Bakkt Holdings, LLC, “Opco”) and its subsidiaries and (ii) after October 15, 2021,
Slide 3: Connecting the digital economy
OUR VISION Connecting the digital economy We power commerce by enabling consumers, businesses and institutions to unlock value from digital assets.
Slide 4: We connect the digital economy
GO TO MARKET / CAPABILITIES We connect the digital economy Crypto Crypto Crypto Pay with Powering Services Rewards* Rewards Digital Assets Loyalty Convert existing points to crypto Pay with crypto Loyalty redemption Buy/sell/hold Earn crypto rewards Pay with points Cross-brand connected loyalty ecos
Slide 5: Bakkt Crypto Connect
Crypto KEY HIGHLIGHTS / PRODUCT CAPABILITIES Services Bakkt® Crypto Connect* Seamless experience within Our B2B2C network enables scaling trusted banking environments Bakkt institutional grade, regulatory compliant, technology platform Seamless integration Scalable reach to member banks and users *
Slide 6: Bakkt Crypto Payout
Pay with KEY HIGHLIGHTS / PRODUCT CAPABILITIES Digital Assets Bakkt® Crypto Payout* o Bakkt® Crypto Payout* will provide an easy way to get paid in crypto, reducing barriers of entry o Our recent research panel1 shows ~80% of gig workers are open to receiving a portion of their paycheck in crypto “B
Slide 7: Bakkt Crypto Rewards
Crypto KEY HIGHLIGHTS / PRODUCT CAPABILITIES Rewards Bakkt® Crypto Rewards* Customers will be able to redeem rewards for crypto … … and also earn rewards in crypto * This product is under development and expected to launch later 7 this year. The images above are illustrative of capabilities that, on
Slide 8: Pay with Points
Pay with Powering KEY HIGHLIGHTS / PRODUCT CAPABILITIES Digital Assets Loyalty Pay with Points o Pay with Points allows consumers to unlock the value of the points they have earned o Consumers can use their points for everyday Pay with points purchases wherever on everyday purchases Google Pay™ and
Slide 9: Our platform is differentiated
KEY HIGHLIGHTS / PLATFORM CAPABILITIES Our platform is differentiated We provide a great experience for our partners and customers, through our differentiated platform capabilities o Regulatory compliance o Breadth of services: one stop shop for multiple capabilities o Go-to-market strategy has nume
Slide 10: We're excited about our recent strategic alliances
KEY HIGHLIGHTS / RECENT STRATEGIC ALLIANCES We’re excited about our recent strategic alliances Crypto Crypto Crypto Rewards Services Services o Strategic alliance to collaborate on use cases o Founded in 1977, PSCU is the largest credit union starting with enabling cryptocurrency redemption service
Slide 11: Financial results
Financial results [bani]
Slide 12: Summary of 1Q22 condensed results
FINANCIAL RESULTS / 1Q22 SUMMARY Summary of 1Q22 condensed results o Net revenue of $12.5 Successor Predecessor $mm's 1Q22 10/15-12/31 10/1-10/14 1Q21 mm increased by Net revenues $12.5 $11.5 $2.2 $8.1 $4.4mm, or 54%, YoY Operating expenses 61.0 86.0 52.6 36.6 primarily driven by Operating loss $(48
Slide 13: 1Q22 Adjusted EBITDA (non-GAAP)
FINANCIAL RESULTS / 1Q22 ADJUSTED EBITDA 1Q22 Adjusted EBITDA (non-GAAP) o Adjusted EBITDA Successor Predecessor of ($28.9 mm) $mm's 1Q22 10/15-12/31 10/1-10/14 1Q21 Net loss $(43.3) $(164.8) $(49.7) $(28.8) o Adjusted EBITDA Depreciation & amortization 5.9 5.4 0.5 2.8 decreased by $12.0 Interest (i
Slide 14: Net revenue
FINANCIAL RESULTS / NET REVENUE Net revenue o Net revenue of $12.5mm increased Net revenue ($mm) 54% YoY o Subscription and service revenue of 1Q net revenue 54% YoY $6.0mm increased 24% YoY primarily due $13.7 to addition of a large financial institution $12.5 to our loyalty platform o Transactio
Slide 15: Operating expense
FINANCIAL RESULTS / OPERATING EXPENSE Operating expense o Total expense of $61.0mm up Expense ($mm) $24.5mm, or 67%, YoY Successor o Compensation expense of $35.1mm up $19.9mm, or 130%, YoY $86.0 Predecessor o Noncash compensation $15.3 expense of $13.3mm increased $8.5 $61.0 $12.0mm YoY $52.6 $16.5
Slide 16: Key performance indicators
FINANCIAL RESULTS / KPIS Key performance indicators Transacting accounts (000) o 1Q22 transacting accounts across 1Q 26% YoY the Bakkt platform up 26% YoY 867 o Digital asset conversion 538 619 560 678 volume up 91% YoY o Strong YoY growth led by loyalty redemption from increased airline 1Q21 2Q21
Slide 17: Share exchange
FINANCIAL RESULTS / SHARE EXCHANGE Share exchange o Class V shares lock-up expired and became available Shares as of 5/11/22 for exchange to Class A shares on April 18th Share class (mm) o There have been 17.5mm Class V shares exchanged Class A 75.3 to date Class V 188.4 o ICE has not exchanged thei
Slide 18: Our focus is connecting the digital economy
CLOSING / KEY PRIORITIES Our focus is connecting the digital economy Build out Invest in Deepen Execute on and activate products relationships with expansion partnerships & capabilities existing partners opportunities o Complete o New capabilities o Continue adding o Prioritize and execute integrati
Slide 19: Notes
Notes [bani]
Slide 20: Adjusted EBITDA
NOTES Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure, which we define as earnings before interest, income taxes, depreciation, amortization, certain non-cash and/or non-recurring items (which items do not contribute directly to our evaluation of operating results), and interest inco
Slide 21: Definitions
NOTES Definitions Financial Operational Combined: Represents the combination of Digital asset conversion volume: Dollar value Predecessor and Successor for the of transaction volume across loyalty applicable period. This is a non-GAAP figure redemption, crypto buy/sell and gift card purchases Predec
Slide 22: Balance sheet
NOTES Successor Balance As of 3/31/22 As of 12/31/21 Assets Current Assets: Cash and cash equivalents sheet $355.2 $391.4 Restricted cash 16.5 16.5 Customer funds 0.6 0.6 Accounts receivable, net 19.5 18.1 Prepaid insurance 27.9 32.2 Other current assets 8.4 4.8 Total current assets 428.0 463.5 Prop
Slide 23: Statement of operations
NOTES Statement Successor 10/15/21- Predecessor 10/1/21- of 1Q22 12/31/21 10/14/21 1Q21 Revenues: Net revenues (includes related party net revenues of $20 and operations affiliate net revenues of $(26), respectively) $12.5 $11.5 $2.2 $8.1 Operating expenses: Compensation and benefits 35.1 62.2 33.9
Slide 24: Adjusted EBITDA reconciliation – Non-GAAP
NOTES Adjusted EBITDA reconciliation – Non-GAAP Successor Predecessor 10/15/21- 10/1/21- 1Q22 12/31/21 10/14/21 1Q21 Net loss $(43.3) $(164.8) $(49.7) $(28.8) Depreciation and amortization 5.9 5.4 0.5 2.8 Interest (income) expense (0.1) (0.0) 0.0 0.0 Income tax (benefit) expense (3.1) 11.8 (0.8) 0.0