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Bakkt Holdings (NYSE:BKKT) delivered on Monday strong guidance for 2024, calling for a surge in revenue and a slide in expenses, as the company's soon-to-be CEO laid out some key priorities for the year.
“Our focus for 2024 is on a set of strategic initiatives that will provide our business with efficient scale, including broadening our client network, expanding our product set and prudently managing expenses," incoming President and CEO Andy Main said in a statement.
"With our newly strengthened balance sheet which helped put us in a position to alleviate the conditions that raised doubt about our ability to continue as a going concern, and improving crypto market conditions, we are excited about the opportunities in 2024 to execute on our key priorities and drive our company towards profitability," he added.
The provider of crypto-based loyalty programs expects 2024 revenue to grow significantly Y/Y to $3,292M-$5,114M from $780.1M in 2023. Operating expenses, excluding crypto costs, execution, clearing and brokerage fees and goodwill, intangible and long-lived assets impairments, are expected to be $160M-$170M, down 13%-18% from the previous year.
BKKT perked up 9.7% in after-hours trading.
Closing out 2023, Bakkt's (BKKT) Q4 net loss of $78.7M widened from the $51.7M deficit in Q3 and narrowed from the $326.4M shortfall in the year-earlier quarter.
Q4 revenue of $214.5M advanced from $204.8M in Q3 and $15.9M a year before, reflecting a significant increase in gross crypto services revenues driven by Bakkt's (BKKT) acquisition of Bakkt Crypto.
Q4 operating expenses totaled $293.0M compared with $257.6M in Q3 and $347.9M in Q4 2022. The latest figure included non-cash intangible assets impairments of $37.2M and non-cash long-lived assets impairments of $30.2M.
Adjusted EBITDA loss for the quarter also improved to $19.0M from $21.6M in the prior quarter and $30.5M in Q4 2022.
Earlier, Bakkt Holdings (BKKT) GAAP EPS of -$0.29, revenue of $214.5M beats by $199.24M.
Conference call at 5:00 p.m. ET.