Bakkt Saw Operating Expenses Increase 300% In Q4 Results
- Bakkt announced its financial and operational results for the quarter and 2022 year.
- Net sales of $15.6 million grew 14% year on year.
- The company will seek to finalize its purchase of Apex Crypto.
Bakkt released its financial and operational results for the quarter and full year ending December 31, 2022, with sales and costs increasing throughout the period.
Operational expenditures increased by about 300% from the fourth quarter of 2022 to $341 million from $86 million. About $272 million in non-cash goodwill and intangible asset impairment charges drove expenses.
Revenue was $15.6 million, a 14% increase over the previous year. Earnings before interest, taxes, depreciation, and amortization were negative $30.5 million, or 30.3% greater than the previous year.
Bakkt anticipates a restructuring charge of $3.7 million to $4.1 million in the first quarter of 2023, which includes cash payments of $2.3 million to $2.7 million.
To accomplish its aims in 2023, the company intends to invest in custody. It will also seek to finalize its purchase of Apex Crypto and accelerate the integration process.
Bakkt’s President and CEO, Gavin Michael, said in a statement:
“We delivered on our product roadmap, worked closely with our partners to go-to-market, added leading industry players to our partner network and announced our acquisition of Apex Crypto. While market conditions continue to be challenging, we are optimistic that our differentiated platform, regulatory and compliance-first approach, balance sheet strength and broad partner network will position us well for success. Our priorities for 2023 will appropriately balance growth and discipline, enabling us to be one of the best positioned crypto companies when market conditions improve.”
Bakkt reported a $1.5 billion net loss for the third quarter, mostly due to the previously disclosed goodwill impairment charge.
The organization is promoting usefulness by employing earning, reward, and pay capabilities, as well as Layer 2 protocols such as Bitcoin’s Lightning Network.
Bakkt will also continue to concentrate on growing our network with new partners and a pipeline of future possibilities. The company and Caesars Entertainment recently have established a multifaceted strategic relationship.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu