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Bakkt Holdings, Inc. Class A (BKKT)
NYSE:BKKT
RESEARCH TOOLSreports
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Bakkt Holdings, Inc. Class A
(NYSE:BKKT)
52Neutral
Bakkt Holdings, Inc. Class A (BKKT) vs. S&P 500 (SPY)
Market Cap
$152.85M
Dividend YieldN/A
Average Volume (3M)444.36K
Price to Earnings (P/E)―
Beta (1Y)2.94
Revenue Growth228.30%
EPS Growth72.26%
CountryUS
Employees747
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-12.26
Shares Outstanding6,476,386
10 Day Avg. Volume485,505
30 Day Avg. Volume444,363
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.08
Price to Cash Flow (P/CF)-1.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Bakkt Holdings, Inc. Class A Business Overview & Revenue Model
Company DescriptionVPC Impact Acquisition Holdings is a blank check company.
How the Company Makes MoneyBakkt Holdings, Inc. makes money through various revenue streams primarily centered around its digital asset platform. The company's revenue model includes transaction fees from cryptocurrency trading on its platform, subscription fees from institutional clients for access to its digital asset management solutions, and service fees for its digital wallet offerings. Additionally, Bakkt generates income through strategic partnerships with financial institutions and businesses that integrate its technology to offer cryptocurrency-related services to their customers. These partnerships enhance Bakkt's distribution channels and contribute to its overall earnings.
Bakkt Holdings, Inc. Class A Financial Statement Overview
Summary
Bakkt Holdings, Inc. is experiencing robust revenue growth, yet it struggles with profitability and leverage issues. The company's financial health is hindered by negative margins, high leverage, and inadequate cash flow management. Strategic improvements in cost control and debt management could enhance financial stability.Income Statement
Bakkt Holdings shows significant revenue growth from previous years, evidenced by a notable increase from $54.57 million in 2022 to $1.91 billion TTM (Trailing-Twelve-Months) in 2024. However, the company is struggling with profitability as indicated by negative EBIT and EBITDA margins. The net profit margin remains negative, suggesting ongoing financial challenges in achieving sustainable profitability.45
Neutral
Balance Sheet
The balance sheet presents a high debt-to-equity ratio, reflecting significant leverage. Despite this, the equity ratio is relatively low, indicating potential financial vulnerability. Stockholders' equity has decreased over time, raising concerns about the company's financial stability. The company needs to manage its liabilities better and improve its equity base.40
Negative
Cash Flow
Bakkt Holdings is experiencing negative free cash flow despite a positive trend in operating cash flow over the TTM period. The free cash flow to net income ratio is also negative, highlighting inefficiencies in cash management. While investing cash flow indicates some level of reinvestment, the overall cash flow position suggests a need for improved fiscal discipline.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.91B | 780.14M | 54.57M | 37.27M | 28.50M | -864.00K | Gross Profit |
| 311.95M | 61.63M | -113.04M | -137.83M | -30.14M | -32.51M | EBIT |
| -98.53M | -227.89M | 1.65B | -164.10M | -79.12M | -35.95M | EBITDA |
| -93.85M | -116.09M | -153.67M | -134.75M | -42.30M | -35.86M | Net Income Common Stockholders |
| -57.81M | -74.85M | -578.11M | -242.66M | -79.61M | -32.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 78.62M | 70.28M | 239.39M | 391.40M | 77.18M | 78.62M | Total Assets |
| 0.00 | 966.87M | 455.50M | 2.41B | 468.38M | 177.68M | Total Debt |
| 0.00 | 27.16M | 26.42M | 11.26M | 2.30M | 0.00 | Net Debt |
| 78.62M | -25.72M | -71.92M | -380.14M | -73.06M | -76.63M | Total Liabilities |
| 0.00 | 831.15M | 119.43M | 108.40M | 58.59M | 15.39M | Stockholders Equity |
| 151.52M | 48.28M | 96.26M | 479.80M | 409.78M | 151.52M |
| Cash Flow | Free Cash Flow | ||||
| -60.94M | -70.13M | -148.14M | -149.99M | -51.51M | -57.68M | Operating Cash Flow |
| -59.41M | -60.70M | -117.60M | -134.30M | -30.94M | -48.50M | Investing Cash Flow |
| 8.15M | 65.97M | -171.96M | 16.92M | -7.93M | -40.95M | Financing Cash Flow |
| 43.95M | -2.63M | -2.58M | 256.83M | 37.49M | 0.00 |
Bakkt Holdings, Inc. Class A Technical Analysis
Negative
11.44
Price Trends
19.21
Negative
19.57
Negative
17.30
Negative
Market Momentum
-1.78
Negative
36.59
Neutral
9.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKKT, the sentiment is Negative. The current price of 11.44 is below the 20-day moving average (MA) of 13.50, below the 50-day MA of 19.21, and below the 200-day MA of 17.30, indicating a bearish trend. The MACD of -1.78 indicates Negative momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKKT.
Bakkt Holdings, Inc. Class A Risk Analysis
Bakkt Holdings, Inc. Class A disclosed 77 risk factors in its most recent earnings report. Bakkt Holdings, Inc. Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bakkt Holdings, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $93.85B | 27.12 | 13.26% | 3.99% | 9.88% | 9.18% | |
74 Outperform | $67.25B | 17.17 | 20.00% | ― | 7.10% | 4.45% | |
68 Neutral | $48.67B | 20.20 | 31.13% | ― | 132.55% | 2681.72% | |
63 Neutral | $2.70B | 22.42 | 4.35% | ― | 34.20% | ― | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
55 Neutral | $4.61B | 9.55 | 18.84% | ― | 69.38% | 30.30% | |
52 Neutral | $152.85M | ― | -90.45% | ― | 228.30% | 72.26% |
* Technology Sector Average
Performance Comparison
BKKT
Bakkt Holdings, Inc. Class A
11.44
-3.50
-23.43%
RIOT
Riot Platforms
7.85
-3.88
-33.08%
CME
CME Group
256.72
47.06
22.45%
MARA
Marathon Digital Holdings
13.11
-6.59
-33.45%
PYPL
PayPal Holdings
68.62
6.17
9.88%
COIN
Coinbase Global
191.73
-60.00
-23.84%
Bakkt Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -5.53% | Next Earnings Date: Mar 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Bakkt's strategic initiatives and cost reduction efforts leading to significant increases in trading volumes and potential market growth. However, these positives were offset by declines in revenue, particularly in loyalty services, and increased cash utilization, indicating ongoing challenges in their business operations.Highlights
Increased Trading Volume
Bakkt reported a significant increase in notional trading volume, achieving 169% of October's total volume in just the first 12 days of November 2024.
Cost Reduction Initiatives
Operating expenditures, excluding crypto costs, were reduced by 39.7% year-over-year, contributing to a 48.2% reduction in Q3 operating loss compared to last year.
Strategic Partnerships and Product Launches
Bakkt successfully launched BakktX platform and onboarded new clients like Blockwire. They also added 9 new coins to their platform, contributing to a notable improvement in trading volumes.
Regulatory and Market Tailwinds
Favorable regulatory developments and macroeconomic shifts, such as the Federal Reserve's rate cuts, are expected to provide tailwinds for Bakkt's future growth.
Lowlights
Decline in Revenue
Q3 crypto and loyalty services revenue was $13.4 million, down approximately 8.8% from Q3 last year.
Challenges in Crypto Business Operations
The crypto notional traded volume was down 36.2% sequentially despite being up 64.9% year-over-year. Additionally, the company faces challenges in maintaining high custody costs and market traction.
Loyalty Revenue Decline
Net loyalty revenues were $12.1 million, down 7.2% year-over-year, with a significant drop in transaction revenue.
Increased Cash Utilization
The company utilized $25.0 million of available cash in Q3 2024, with expectations to end the year with lower cash reserves due to reduced revenue and higher expenses.
Company Guidance
During Bakkt's Q3 2024 earnings call, the company highlighted several key metrics and strategic initiatives. Notably, Bakkt's notional trading volume surged to $259 million by November 12, a significant increase from October's figures, reflecting a 169% rise in just 12 days. This growth was attributed to favorable market conditions following the U.S. presidential election. However, Q3 crypto and loyalty services revenue totaled $13.4 million, marking an 8.8% decrease year-over-year due to a prior one-time revenue adjustment. Operating expenditures excluding crypto costs were $40.7 million, a reduction of 39.7% year-over-year, leading to a 48.2% decrease in operating loss. Bakkt also expanded its coin offerings, adding nine new tokens in Q3 and six more in November, which contributed to trading volume growth. Additionally, the company is considering strategic alternatives for BakktTrust due to its high costs and regulatory pressures. Despite challenges, Bakkt is focused on its BakktX platform and partnerships with firms like Blackwire to drive future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.