Q1 2024 Bakkt Holdings Inc Earnings Call Transcript
Key Points
- Revenue net of crypto services increased by 33% from Q1 last year, demonstrating strong growth.
- Notional trading volume on the platform increased by 94% compared to the same period last year, indicating robust trading activity.
- Operating expenses decreased by 16% versus Q1 last year due to effective cost restructuring initiatives.
- Net loss improved by 53% year over year, and adjusted EBITDA loss decreased by approximately 44% year over year.
- Assets under custody grew to a record $1.1 billion at the end of the first quarter, reflecting strong asset management performance.
- Despite revenue growth, the company still reported a net loss, indicating ongoing challenges in achieving profitability.
- A workforce reduction of 28 employees was implemented as part of cost restructuring, which could impact morale and operational efficiency.
- The company's take rate decreased from 80 basis points in Q4 2023 to approximately 44 basis points in Q1 2024, reflecting lower profitability per transaction.
- Crypto trading volumes are highly volatile, as evidenced by fluctuations in monthly trading volumes, which poses risks to stable revenue generation.
- The company acknowledged a material weakness in internal controls related to the valuation of Class 1 and Class 2 warrants, raising concerns about financial governance.
Greetings, and welcome to the Bakkt first-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
I'll now turn it over to Olivia Keavey, Senior Lead of Communications at Bakkt. Please go ahead.
Good afternoon, and thank you for joining us on Bakkt's first-quarter earnings call. Today's presentation, including the separate earnings call presentation that can be found at our Investor Relations website at www.investor.bakkt.com will contain certain forward-looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from those expressed or implied in such forward-looking statements. For a more complete discussion on forward-looking statements and the risks and uncertainties related to Bakkt's business, please refer to its filings with the
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