BAKKT HOLDINGS Reports Q2 FY2023 Earnings Results
August 28, 2023
🌥️Earnings Overview
Bakkt Holdings ($NYSE:BKKT) revealed their financial results for the second quarter of 2023, which ended on June 30. The total revenue for the quarter was USD 347.6 million, an improvement from the USD 13.6 million reported in the same quarter the previous year. Net income was USD -16.8 million, compared to the -3.9 million recorded in the same period a year prior.
Market Price
BAKKT HOLDINGS reported its earnings results for the second quarter of FY2023 on Thursday. Despite a difficult financial environment, the company posted strong results, beating analyst expectations and outperforming its peers. The stock opened at $1.3 and closed at $1.4, representing a 2.8% decrease from the prior closing price of $1.4.
In addition, BAKKT HOLDINGS has made several strategic moves that have positioned the company for continued success in the future. The company has expanded its operations to include digital asset asset trading and custody, as well as blockchain-based payments processing services. This expansion has allowed BAKKT HOLDINGS to capitalize on the emerging digital asset industry and strengthen its competitive position. Overall, BAKKT HOLDINGS reported strong second quarter results and is well-positioned to continue to deliver strong financial performance in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Bakkt Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 388.31 | -597.9 | 324.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Bakkt Holdings. More…
| Operations | Investing | Financing |
| -135.65 | 107.09 | -5.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Bakkt Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.02k | 763.87 | 0.92 |
Key Ratios Snapshot
Some of the financial key ratios for Bakkt Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -41.3% |
| FCF Margin | ROE | ROA |
| -40.6% | -115.7% | -9.8% |
Analysis
At GoodWhale, we have conducted an analysis of BAKKT HOLDINGS‘ wellbeing. According to our proprietary Star Chart, BAKKT HOLDINGS is classified as a “Cheetah” – a type of company which typically demonstrates high revenue or earnings growth but is considered less stable due to lower profitability. Given the company’s intermediate health score of 4/10 with regard to its cashflows and debt, BAKKT HOLDINGS may be able to pay off debt and fund future operations. It is also strong in growth, medium in asset and weak in dividend, profitability. Given these qualities, we believe that investors looking for a quick return on their investment may find BAKKT HOLDINGS to be an attractive opportunity. Investors who are comfortable taking on higher risk investments may also find BAKKT HOLDINGS to be a good fit. However, those investors who are averse to risk should proceed with caution when considering BAKKT HOLDINGS. More…
Peers
Bakkt Holdings Inc is a financial technology company that provides digital asset custody, trading, and payment services. The company was founded in 2018 and is headquartered in New York, New York. Bakkt Holdings Inc operates in the United States, Europe, Asia, and Oceania.
Bakkt Holdings Inc offers a variety of services including digital asset custody, digital asset trading, and digital asset payments. The company’s primary competitors are Fiserv Inc, Coinbase Global Inc, and Perk Labs Inc.
– Fiserv Inc ($NASDAQ:FISV)
Fiserv is a global provider of financial services technology solutions. The company’s products and services include point-of-sale systems, payments processing, mobile banking, and more. Fiserv serves clients in a variety of industries, including banking, healthcare, insurance, and investment management.
Fiserv has a market cap of $62.15 billion as of 2022. The company’s return on equity is 7.68%.
Fiserv is a global leader in financial services technology solutions. The company’s products and services include point-of-sale systems, payments processing, mobile banking, and more. Fiserv serves clients in a variety of industries, including banking, healthcare, insurance, and investment management.
Fiserv has a market cap of $62.15 billion as of 2022. The company’s return on equity is 7.68%.
– Coinbase Global Inc ($NASDAQ:COIN)
Coinbase is a digital asset exchange company headquartered in San Francisco, California. It operates exchanges of digital assets with fiat currencies in 32 countries, and bitcoin and ether in 190 countries worldwide. Coinbase has a strong focus on compliance and is one of the most regulated exchanges in operation today. The company has a mission to create an open financial system for the world. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam, and has since grown to become one of the most popular cryptocurrency exchanges in operation.
– Perk Labs Inc ($OTCPK:PKLBF)
Founded in 2013, Perk Labs Inc is a Canadian technology company that provides mobile marketing and engagement solutions. The company has a market cap of 2.93M as of 2022 and a return on equity of -214.59%.
Perk Labs Inc’s solutions are used by brands and businesses to increase customer engagement and loyalty. The company’s platform allows businesses to create and manage mobile marketing campaigns, as well as track and analyze customer behavior.
Perk Labs Inc is headquartered in Toronto, Canada.
Summary
BAKKT Holdings reported positive earnings results for the second quarter of FY2023, with total revenue growing from USD 13.6 million to USD 347.6 million year-over-year (YoY). Despite this, the company recorded a net loss of USD 16.8 million for the quarter, compared to the previous year’s loss of USD 3.9 million. Investors should take this into account when making an investment decision on BAKKT Holdings.
Having said that, the considerable YoY revenue increase is a positive sign and could signal potential future growth. It remains to be seen how the company will perform in the future, but investors should keep an eye on the company’s development in the upcoming quarters.
