Bakkt Holdings Earnings Fall Short, Revenue Exceeds Expectations

The stock price for Bakkt Holdings closed at $0.58, reflecting a decline of -74.67% over the past three months and -63.06% over the past year.

Bakkt Holdings Earnings Fall Short, Revenue Exceeds Expectations
Image / Bakkt

Bakkt, the NYSE-listed cryptocurrency custody and trading platform, revealed its financial performance for 2023, reporting a substantial increase in annual revenue to $780 million. Despite this impressive revenue growth, the company also disclosed a net loss of $226 million for the same period, marking an 89% decrease compared to the previous year.

Bakkt also experienced a 49% year-over-year decrease in notional traded volume, largely influenced by lower industry-wide volume and reduced activity from users on Webull Pay, its partner payment app.

Bakkt forecasts a substantial growth trajectory for 2024, projecting full-year revenue to increase up to $5,114 million, marking a remarkable 555% year-over-year growth. However, the company anticipates that its full-year crypto costs will also rise in line with revenue, ranging from $3,220 million to $5,027 million.

Despite the mixed earnings results, investors may want to delve deeper into Bakkt Holdings's recent financial performance and overall financial health to gain a comprehensive understanding of the company's trajectory and prospects.

The financial disclosure comes amidst challenges for Bakkt, including a warning from the New York Stock Exchange regarding potential delisting due to its common stock's average closing price falling below $1.00 per share over a consecutive 30-day trading period. As of Monday, Bakkt's stock closed at $0.54.