24K-Production
Bakkt Holdings (NYSE:BKKT) stock sank 10% in Wednesday morning trading after the crypto platform cut its full-year revenue guidance on the expectation that crypto trading accounts will decline in the second half of 2024.
The company now expects full-year revenue of $2.57B-$2.83B (midpoint $2.70B), compared with its previous guidance of $3.00B-$4.45B (midpoint $3.72B).
Gross crypto revenue is expected to be $2.52B-$2.77B (midpoint $2.64B), down from the prior range of $2.95B-$4.39B (midpoint $3.67B).
The guidance includes assumptions that new crypto trading accounts will drop due to the re-alignment of international strategy and the addition of institutional clients with a steady ramp-up in assets under custody in H2 2024.
Full-year 2024 total operating expenses, excluding crypto costs, execution, clearing and brokerage fees and goodwill, intangible and long-lived assets impairments, are expected to be $157M-$162M (midpoint $160M), down from its previous range of $155M-$165M ($160M).
Net cash used in operating activities is anticipated to be $72M-$79M in 2024, compared with its previous guidance of $58M-$72M.
Q2 adjusted EBITDA of -$17.9M, a bigger loss than the Visible Alpha consensus of -$13.5M, improved from -$24.5M in last year’s Q2.
Operating loss of $22.0M narrowed from $51.1M a year ago, primarily on increased crypto services revenue and lower compensation, SG&A and acquisition related costs.
Total revenue of $509.9M jumped 47% Y/Y.
Q2 total operating expenses, excluding crypto costs and execution, clearing and brokerage fees, dropped 43% Y/Y to $36.8M, principally on cost restructuring and headcount cuts in Q1 2024.
Earlier, Bakkt Holdings reports Q2 results
