Bakkt Announces Preliminary 2023 Financial Results; Preliminary Estimates Within Previously Provided Guidance
February 29 2024 - 6:25AM
Business Wire
Bakkt Holdings, Inc. (“Bakkt”) (NYSE: BKKT) announced certain
preliminary financial results for the fourth quarter and full year
ended December 31, 2023.
Preliminary financial results for fourth quarter 2023
- Total revenues for the fourth quarter of 2023 are estimated to
be in a range of $213 million to $215 million.
- Gross crypto revenues for the fourth quarter of 2023 are
estimated to be in a range of $197 million to $199 million.
- Net loyalty revenues for the fourth quarter of 2023 are
estimated to be in a range of $13 million to $15 million.
- Total crypto costs and execution, clearing and brokerage fees
for the fourth quarter of 2023 are estimated to be in a range of
$196 million to $198 million.
- Available cash, cash equivalents and available-for-sale
securities at year-end 2023 are estimated to be in a range of $68
million to $70 million.
- Net cash used in operating activities (excluding customer funds
payable) for the fourth quarter of 2023 is estimated to be in a
range of $16 million to $18 million.
- Free cash flow usage (non-GAAP) for the fourth quarter of 2023
is estimated to be in a range of $18 million to $20 million.
Preliminary financial results for full year 2023
- Total revenues for fiscal year 2023 are estimated to be in a
range of $778 million to $780 million, which is expected to be in
line with prior guidance of between $750 million and $1,268
million.
- Gross crypto revenues for fiscal year 2023 are estimated to be
in a range of $725 million to $727 million, which is expected to be
in line with prior guidance of between $697 million and $1,215
million.
- Net loyalty revenues for fiscal year 2023 are estimated to be
in a range of $51 million to $53 million, which is expected to be
in line with prior guidance of $53 million.
- Total crypto costs and execution, clearing and brokerage fees
for fiscal year 2023 are estimated to be in a range of $720 million
to $722 million, which is expected to be in line with prior
guidance of between $693 million and $1,208 million.
- Net cash used in operating activities (excluding customer funds
payable) for fiscal year 2023 is estimated to be in a range of $87
million to $89 million, which is expected to be in line with prior
guidance of between $86 million and $89 million.
- Free cash flow usage (non-GAAP) for fiscal year 2023 is
estimated to be in a range of $100 million to $102 million, which
is expected to be in line with prior guidance of between $99
million and $102 million.
The preliminary financial information set forth above has not
been audited by Bakkt’s independent registered accounting firm and
is subject to revision and is anticipated to be finalized in
connection with the completion of the Bakkt’s Annual Report on Form
10-K for the year ended December 31, 2023. Bakkt’s preliminary
estimates above are not a comprehensive statement of Bakkt’s
financial results and are not necessarily indicative of the results
to be expected as of or for the fiscal period ended December 31,
2023, or any future period. Accordingly, you should not place undue
reliance on these preliminary estimates. Bakkt expects to report
its fourth quarter 2023 results during a conference call in March,
at which point it will discuss its 2023 financial results in more
detail.
During the course of Bakkt’s quarter-end closing procedures and
review process, including the finalization of its financial
statements for and as of the period and year ended December 31,
2023, Bakkt may identify items that would require it to make
adjustments, which may be material, including but not limited to
potential non-cash asset impairments, to the information presented
above. As a result, the estimates above constitute forward-looking
information and are subject to risks and uncertainties, including
possible adjustments to preliminary results.
About Bakkt Founded in 2018, Bakkt builds solutions that
enable our clients to grow with the crypto economy. Through
institutional-grade custody, trading, and onramp capabilities, our
clients leverage technology that’s built for sustainable, long-term
involvement in crypto.
Bakkt is headquartered in Alpharetta, GA.
Bakkt-C Source: Bakkt Holdings, Inc.
Note on Forward-Looking Statements This press release
contains “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Such statements
include, but are not limited to, Bakkt’s preliminary financial
results and the timing for Bakkt announcing its audited financial
results, among others. Forward-looking statements can be identified
by words such as “will,” “likely,” “expect,” “continue,”
“anticipate,” “estimate,” “believe,” “intend,” “plan,”
“projection,” “outlook,” “grow,” “progress,” “potential” or words
of similar meaning. Such forward-looking statements are based upon
the current beliefs and expectations of Bakkt’s management and are
inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
difficult to predict and beyond Bakkt’s control. Actual results and
the timing of events may differ materially from the results
anticipated in such forward-looking statements as a result of the
following factors, among others: changes resulting from the
Company’s finalization of its financial statements for and as of
the period and year ended December 31, 2023; information or new
changes in facts or circumstances that may occur prior to the
filing of the Company’s Annual Report on Form 10-K for the year
ended December 31, 2023 that are required to be included in such
annual report; the Company's failure to implement the Company's
business plans or strategies; and other risks and uncertainties
indicated in Bakkt’s filings with the Securities and Exchange
Commission. You are cautioned not to place undue reliance on such
forward-looking statements. Such forward-looking statements relate
only to events as of the date on which such statements are made and
are based on information available to us as of the date of this
press release. Unless otherwise required by law, we undertake no
obligation to update any forward-looking statements made in this
press release to reflect events or circumstances after the date of
this press release or to reflect new information or the occurrence
of unanticipated events.
Non-GAAP Financial Measures Free Cash Flow is a non-GAAP
financial measure. Free Cash Flow is cash flow from operations
adjusted for “capitalized internal use software development costs
and other capital expenditures” and “interest income.” We adjust
for capitalized expenses associated with internally developed
software for our technology platforms given they are a large
component of our ongoing expense base given our position as a
technology platform company.
Information reconciling forward-looking Free Cash Flow to the
comparable GAAP financial measure is unavailable to us without
unreasonable effort. We are not able to provide a reconciliation of
forward-looking Free Cash Flow to the comparable GAAP financial
measure because certain items required for such reconciliations are
outside of our control and/or cannot be reasonably predicted, such
as timing of customer payments for account receivables and payment
terms for operating expenses. Preparation of such reconciliations
would require a forward-looking statement of income and statement
of cash flow, prepared in accordance with GAAP, and such
forward-looking financial statements are unavailable to us without
unreasonable effort (as specified in the exception provided by Item
10(e)(1)(i)(B) of Regulation S-K). We provide a range for our Free
Cash Flow forecast that we believe will be achieved, however we
cannot accurately predict all the components of the Free Cash Flow
calculation. We provide a Free Cash Flow because we believe that
Free Cash Flow, when viewed with our results under GAAP, provides
useful information for the reasons noted above. However, Free Cash
Flow is not a measure of liquidity under GAAP and, accordingly,
should not be considered as an alternative to net cash used in
operating activities (excluding customer funds payable) as an
indicator of liquidity.
Reconciliation of Net Cash Used in
Operating Activities (Excluding Customer Funds Payable) to Non-GAAP
Free Cash Flow ($ in millions) (unaudited)
4Q23E
FY 2023E
$ in millions
Low
High
Low
High
Net cash used in operating activities
(excluding customer funds payable)
($16
)
($18
)
($87
)
($89
)
Capex*
(1
)
(1
)
(9
)
(9
)
Interest income, net
(1
)
(1
)
(4
)
(4
)
Free Cash Flow
($18
)
($20
)
($100
)
($102
)
* Capex includes capitalized internal-use
software development costs and other capital expenditures
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228732208/en/
Investor Relations Ann DeVries, Head of Investor
Relations Ann.DeVries@bakkt.com
Media press@bakkt.com
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