Bakkt, Inc. · NYSE:BKKT
Bakkt — Q4 2024 Earnings Presentation
23 slides from Bakkt's earnings presentation, Mar 17, 2024
Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings March 19, 2025
Slide 2: Important notice
Important notice Unless the context otherwise provides, “we,” “us,” “our,” “Bakkt” and like terms refer to Bakkt Holdings, Inc. and its subsidiaries. FORWARD-LOOKING STATEMENTS This presentation and accompanying oral presentation contains “forward-looking statements” within the meaning of Section 27
Slide 3: Bakkt reimagined
Bakkt reimagined Plan to streamline the business with a crypto-driven future focus STRATEGIC PARTNERSHIP NON-CORE ASSETS Agreed: Divestiture of Custody BECOMING A PURE-PLAY CRYPTO INFRASTRUCTURE COMPANY Pending: Divestiture / Wind- Down of Loyalty Note: The partnership with Distributed Technologies
Slide 4: Continued trading volume increase
Continued trading volume increase • Q4 volume increased 778% year-over-year MONTHLY NOTIONAL CRYPTO TRADED VOLUME ($mm) QUARTERLY NOTIONAL CRYPTO TRADED VOLUME ($mm) 2023 2024 $1,778 $867 $746 $860 $443 $494 $165 $334 $315 $102 $106 $191 $203 Aug '24 Sept '24 Oct '24 Nov '24 Dec '24 Q1 Q2 Q3 Q4 Note
Slide 5: Q4'24: Financial and operational update
Q4’24: Financial and operational update Revenue, net 1 $16.7 $17.8 Financial Update1,2,3 $13.4 • Revenues, net up 6.6% YoY to $17.8 million • Opex, excluding crypto costs, down 69.0% YoY • Net loss of $40.4 million, improved by 48.7% YoY • Adjusted EBITDA loss of $6.4 million, improved 66.3% YoY 4Q2
Slide 6: Recapping our 2024 strategic priorities
Recapping our 2024 strategic priorities Focused on three key priorities to drive shareholder value Broaden client network and Expand our products and Continued improvement of deepen existing relationships solutions our cost structure
Slide 7: Macro update: favorable tailwinds, continued
Macro update: favorable tailwinds, continued Election Spark Pro-Crypto White House Crypto future-focus • Capitalize on tailwinds • BTC to ATH • Repeal of SAB 121 • Institutional focus and innovation • Crypto volume increase • Strategic Digital Asset Reserve • Expand liquidity and demand • SEC Crypto
Slide 8: Our 2025 strategic priorities
Our 2025 strategic priorities Focused on three key priorities for crypto-driven future-focus Expand and deepen client Increase commercial and Maintain risk and compliance relationships throughout their operational effectiveness excellence while pursuing strategic lifecycle and efficiency growth • Su
Slide 9: Financial results
Financial results
Slide 10: 4Q24 KPIs
4Q24 KPIs • Crypto enabled accounts of 6.7mm have continued to increase steadily QoQ • Loyalty transacting accounts and redemption volume up sequentially and down YoY • Crypto trading volume up 462% sequentially, slightly better than new broader market benchmark1, and up 809% YoY • Assets under cust
Slide 11: 4Q24 revenues
4Q24 revenues Revenue by Product ($MM) Loyalty Crypto $1,797.3 $854.6 Crypto revenues • Gross revenues of $1,797.3mm (net, $6.6mm) driven by $509.9 $1,786.1 $328.4 increase in crypto transaction volumes YoY and QoQ due $214.5 $841.3 to Bakkt Crypto acquisition and higher industry wide $199.4 $497.1
Slide 12: 4Q24 operating expenses
4Q24 operating expenses ($MM) Operating Expenses • Total operating expenses of $1,809.0mm includes $1,779.5mm of crypto costs and $1,809.0 $9.6 execution, clearing and brokerage fees, related $4.7 to Bakkt Crypto $15.2 $866.4 • SG&A expenses of $4.7mm decreased by 59.8% $16.5 YoY and 44.7% sequentia
Slide 13: 4Q24 condensed P&L
4Q24 condensed P&L • Total revenues of $1,797.3 mm, up 737.9% YoY in gross $mm's 4Q24 3Q24 4Q23 Crypto services $ 1,786.1 $ 316.3 $ 199.4 crypto and loyalty trading revenue driven by increase in Loyalty services, net 11.1 12.1 15.1 notional volume Total revenues 1,797.3 328.4 214.5 Crypto costs and
Slide 14: FY24 condensed P&L
FY24 condensed P&L $mm's FY24 FY23 Crypto services $3,441.1 $727.0 • Total revenues of $3,490.2mm, up 347.4% YoY in gross crypto and Loyalty services, net 49.2 53.1 loyalty trading revenue driven by increase in Q4’24 trading Total revenues 3,490.2 780.1 Crypto costs and execution, clearing and broke
Slide 15: 4Q24 adjusted EBITDA (non-GAAP)
4Q24 adjusted EBITDA (non-GAAP) • Adjusted EBITDA loss of $(6.4)mm $mm's Net loss $ 4Q24 (40.3) $ 3Q24 (6.3) $ 4Q23 (78.7) decreased 66.3% YoY primarily due Depreciation and amortization 0.1 0.1 3.1 Interest income, net (1.1) (1.0) (0.8) to overall decrease in Income tax expense (benefit) 0.1 (0.1)
Slide 16: 4Q24 condensed balance sheet
4Q24 condensed balance sheet $mm's As of 12/31/24 As of 12/31/23 Assets • $39.0mm of cash and cash equivalents as of Cash & cash equivalents $ 39.0 $ 52.9 December 31, 2024 Available-for-sale securities — 17.4 Other current assets 144.8 110.8 • Cash and cash equivalents increased by $3.3 Total curre
Slide 17: 1Q25 outlook
1Q25 outlook Updates to Key Assumptions FINANCIAL METRIC Q1’25 OUTLOOK Quarterly outlook moving forward Revenues Total revenues of $1,030mm - • Aligns to industry standards given the volatile nature of crypto $1,280mm • Gross crypto revenues of Revenues, Crypto Costs and ECB $1,023mm - $1,271mm • Ne
Slide 18: 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 19: 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 20: Adjusted EBITDA reconciliation – Non-GAAP
NOTES Adjusted EBITDA reconciliation – Non-GAAP $mm's 4Q24 3Q24 4Q23 FY24 FY23 Ne t loss $ (40.4) $ (6.3) $ (78.7) $ (103.5) $ (225.8) Depreciation and amortization 0.1 0.1 3.1 0.3 13.9 Interest income, net (1.1) (1.0) (0.8) (4.3) (4.3) Income tax expense (benefit) 0.1 (0.1) — 0.2 0.4 EBITDA $ (41.4
Slide 21: Balance sheet
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Slide 22: Statement of operations
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Slide 23: Statement of cash flows
NOTES $mm's 4Q24 3Q24 4Q23 FY24 FY23 Statement of Cash flows from operating activities: Net loss $ (40.4) $ (63.1) $ (78.7) $ (103.4) $ (225.8) Adjustments to reconcile net loss to net cash used in operating activities cash flows Depreciation and amortization Change in fair value of contingent consi