Bakkt Holdings Inc (BKKT) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Bakkt Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn it over to Ann DeVries, Head of Investor Relations at Bakkt. Please go ahead.

您好，歡迎參加 Bakkt 2023 年第二季度收益電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。我現在想把它交給 Bakkt 投資者關係主管 Ann DeVries。請繼續。

Good morning, and thank you for joining us for Bakkt's Second Quarter Earnings Call. Today's presentation includes a separate earnings call presentation that can be found on our Investor Relations website at www.investors.bakkt.com will contain certain forward-looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from those expressed or implied in such forward-looking statements. For a more complete discussion on forward-looking statements and the risks and uncertainties related to Bakkt's business, please refer to the filings with the Securities and Exchange Commission.

早上好，感謝您參加 Bakkt 第二季度財報電話會議。今天的演示文稿包括單獨的收益電話會議演示文稿，您可以在我們的投資者關係網站 www.investors.bakkt.com 上找到該演示文稿，該演示文稿將包含某些前瞻性陳述。這些陳述基於管理層當前的預期，並受到風險和不確定性的影響，可能導致實際結果與此類前瞻性陳述中明示或暗示的結果存在重大差異。有關前瞻性陳述以及與 Bakkt 業務相關的風險和不確定性的更完整討論，請參閱向美國證券交易委員會提交的文件。

During today's presentation, in addition to discussing results that are calculated in accordance with generally accepted accounting principles, we will refer to certain non-GAAP financial measures. For more information on this, the basis of the presentation for our financial results and our non-GAAP measures, please refer to our earnings release which was filed this morning with the SEC.

在今天的演示中，除了討論根據公認會計原則計算的結果外，我們還將參考某些非公認會計準則財務指標。有關此方面的更多信息、我們的財務業績和非公認會計準則衡量標準的介紹基礎，請參閱我們今天早上向 SEC 提交的收益報告。

Joining me on today's call are Gavin Michael, Chief Executive Officer; and Karen Alexander, Chief Financial Officer. After our prepared remarks, we will answer questions we will receive from our investors through the Say Technologies platform. After that, Gavin and Karen will be available to answer questions from the analysts community.

與我一起參加今天電話會議的是首席執行官加文·邁克爾 (Gavin Michael)；和凱倫·亞歷山大，首席財務官。在我們準備好的發言之後，我們將回答投資者通過 Say Technologies 平台提出的問題。之後，加文和凱倫將回答分析師社區的問題。

I'll now turn it over to Gavin.

我現在把它交給加文。

Thank you, Ann. Good morning, everyone, and thanks for joining. We're making meaningful progress executing on the key priorities we set out at the beginning of the year. We expanded our crypto platform through the acquisition and integration of Apex Crypto while activating and broadening our client network and we've been prudent with capital allocation. We're winning new custody and crypto trading clients and building strategic alliances with prominent players as our capabilities and best-in-class infrastructure resonates with the market.

謝謝你，安。大家早上好，感謝您的加入。我們在執行年初制定的關鍵優先事項方面取得了有意義的進展。我們通過收購和整合 Apex Crypto 擴展了我們的加密平台，同時激活和擴大了我們的客戶網絡，並且我們對資本配置一直保持謹慎。隨著我們的能力和一流的基礎設施與市場產生共鳴，我們正在贏得新的託管和加密貨幣交易客戶，並與知名參與者建立戰略聯盟。

We're expanding into new international markets alongside our clients, with Latin America expected to launch in the fourth quarter and other markets such as the U.K., European Union, Hong Kong and Australia to follow. We're focused on delivering solid results for our existing loyalty clients as we work together to grow transaction volume.

我們正在與客戶一起拓展新的國際市場，拉丁美洲預計將於第四季度推出，英國、歐盟、香港和澳大利亞等其他市場也將緊隨其後。當我們共同努力增加交易量時，我們致力於為現有的忠誠度客戶提供堅實的成果。

Lastly, we continue to prudently manage expenses, resulting in improved gross profit margin. We're also updating our full year 2023 operating cash flow outlook and expect to improve approximately 20% from our prior guidance.

最後，我們繼續審慎管理費用，毛利率有所改善。我們還更新了 2023 年全年運營現金流展望，預計比之前的指導提高約 20%。

Our platform provides end-to-end crypto capabilities from advanced trading and secured custody to fiat on-ramps. We also secured custody of assets, founded in traditional finance and built to uphold the shifting regulatory standards. Regulated by the NYDFS as a limited-purpose trust company, that custody has reliable infrastructure with multilayered security for streamlined management and Disaster Recovery Services to help ensure customer funds are safe and recoverable.

我們的平台提供從高級交易和安全託管到法定入口的端到端加密功能。我們還確保資產託管，這些資產建立在傳統金融基礎上，旨在維護不斷變化的監管標準。該託管機構作為一家有限目的信託公司受 NYDFS 監管，擁有可靠的基礎設施和多層安全性，可簡化管理和災難恢復服務，幫助確保客戶資金安全且可收回。

We offer curative, secure and regulated crypto trading with API and UI options to activate trading responsibly. This includes unparalleled liquidity and price quality with 100% uptime and seamless integration and customer experience which enables clients to integrate in less than 45 days with instant fund settlement and failover protection.

我們通過 API 和 UI 選項提供有效、安全且受監管的加密貨幣交易，以負責任地激活交易。這包括無與倫比的流動性和價格質量、100% 的正常運行時間、無縫集成和客戶體驗，使客戶能夠在 45 天內集成即時資金結算和故障轉移保護。

Capabilities also include coin transfer and advanced order management system and multiple fee structures. As part of crypto trading, our clients are increasingly utilizing fiat onramps via ACH, debit or wire transfer for a smoother end-to-end customer experience. And we continue to offer innovative ways for consumers to access crypto including through rewards redemption and by earning or getting paid in crypto.

功能還包括硬幣轉賬和先進的訂單管理系統以及多種費用結構。作為加密貨幣交易的一部分，我們的客戶越來越多地通過 ACH、借記卡或電匯方式利用法幣入口，以獲得更順暢的端到端客戶體驗。我們繼續為消費者提供獲取加密貨幣的創新方式，包括通過獎勵兌換以及通過加密貨幣賺取或獲得報酬。

Our royalty redemption capabilities remain a strength and offer a full spectrum of content, including Apple products and other merchandise, travel and gift cards. We've introduced personalized offerings and additional Apple products while maintaining a strong list of SKUs and modernizing our infrastructure and the architecture with cloud capabilities.

我們的版稅兌換功能仍然是一項優勢，並提供全方位的內容，包括 Apple 產品和其他商品、旅行和禮品卡。我們推出了個性化產品和其他 Apple 產品，同時維護了強大的 SKU 列表，並利用雲功能實現了我們的基礎設施和架構的現代化。

Through our B2B2C approach, we have a broad client reach in high-growth sectors that provide efficient scalability. This network is looking to expand their relationship with their millions of customers and crypto presents an opportunity to differentiate their services, drive engagement and revenue growth. And for Bakkt, it enables us to reach millions of end customers across a variety of providers. We've made progress in integrating Apex Crypto into our business, including employee onboarding, integrating our product and technology processes and managing key functions like compliance and risk, all with minimal impact to our existing client base.

通過我們的 B2B2C 方法，我們在高增長行業擁有廣泛的客戶群，並提供高效的可擴展性。該網絡希望擴大與數百萬客戶的關係，而加密貨幣提供了一個使他們的服務脫穎而出、推動參與度和收入增長的機會。對於 Bakkt 來說，它使我們能夠覆蓋各種提供商的數百萬最終客戶。我們在將 Apex Crypto 融入我們的業務方面取得了進展，包括員工入職、集成我們的產品和技術流程以及管理合規性和風險等關鍵功能，所有這些都對我們現有客戶群的影響最小。

We completed the rebrand of Apex Crypto to Bakkt Crypto and transitioned all necessary documentation and materials for clients. With the integration of this deal mostly done, we're now focused on leveraging the synergies and expanded capabilities from this transformational deal to continue growing and drive further efficiencies on a go-forward basis. Through our client-led model, we are always working with our key clients to grow their business. Our work with Webull is a prime example of our ability to successfully execute bringing together the combined strength of legacy Bakkt and Apex Crypto.

我們完成了 Apex Crypto 更名為 Bakkt Crypto 的工作，並為客戶轉移了所有必要的文檔和材料。隨著這筆交易的整合基本完成，我們現在專注於利用這次轉型交易的協同效應和擴展的能力，繼續發展並進一步提高效率。通過我們以客戶為主導的模式，我們始終與主要客戶合作發展他們的業務。我們與 Webull 的合作是我們成功地將傳統 Bakkt 和 Apex Crypto 的綜合實力結合起來的能力的一個很好的例子。

Webull approached us to develop a new innovative app with ACH funding rails for their crypto customers. Our teams mobilized quickly, bringing together Apex Crypto trading and Bakkt funding capabilities to launch Webull Pay in less than 40 days. In solving for this, we also built ACH funding functionality, which provides competitive advantage and we're seeing significant interest from other clients and prospects in utilizing fiat onramps.

Webull 與我們接洽，希望為其加密貨幣客戶開發一款具有 ACH 融資渠道的新型創新應用程序。我們的團隊迅速動員起來，將 Apex Crypto 交易和 Bakkt 融資能力結合在一起，在不到 40 天的時間內推出了 Webull Pay。為了解決這個問題，我們還構建了 ACH 融資功能，該功能提供了競爭優勢，並且我們看到其他客戶和潛在客戶對利用法幣入口表現出濃厚的興趣。

Additionally, I'm pleased to share that Bakkt will be one of Plaid's crypto solution partners for its customers who are interested in offering crypto solutions to their end users. This is particularly exciting since Plaid has an extensive network of over 8,000 fintechs using their platform today. Through the Plaid and Bakkt partnership, those fintechs will be able to easily and safely explore offering crypto solutions to their users. We're pleased to share that we've expanded our network of crypto trading clients, mostly in the fintech industry. We've recently signed on several new clients and are engaged in late-stage negotiations with a number of additional prospects.

此外，我很高興地告訴大家，Bakkt 將成為 Plaid 的加密解決方案合作夥伴之一，面向有興趣向最終用戶提供加密解決方案的客戶。這尤其令人興奮，因為 Plaid 擁有由 8,000 多家金融科技公司組成的廣泛網絡，目前正在使用其平台。通過 Plaid 和 Bakkt 的合作夥伴關係，這些金融科技公司將能夠輕鬆、安全地探索向用戶提供加密解決方案。我們很高興與大家分享，我們已經擴大了加密貨幣交易客戶網絡，主要是在金融科技行業。我們最近簽約了幾家新客戶，並正在與一些其他潛在客戶進行後期談判。

We're also making solid progress on our international expansion strategy, actively working with our client base to develop and execute our go-to-market strategy in markets where we see regulatory clarity. We will serve as e Invstr’s crypto provider in the U.S., a relationships sourced through our commercial agreement with Apex Fintech Solutions. We're also working with Swan Bitcoin to provide end-to-end bitcoin trading, fiat on-ramp and qualified custody. We also signed Blockchain.com, one of the first and largest crypto wallet providers in the world, along with Zaden and CryptoMom to provide end-to-end crypto trading.

我們還在國際擴張戰略方面取得了紮實的進展，積極與我們的客戶群合作，在監管明確的市場中製定和執行我們的上市戰略。我們將作為 e Invstr 在美國的加密貨幣提供商，這種關係是通過我們與 Apex Fintech Solutions 的商業協議建立的。我們還與 Swan Bitcoin 合作，提供端到端比特幣交易、法定貨幣入口和合格託管服務。我們還與全球最早也是最大的加密錢包提供商之一的 Blockchain.com 以及 Zaden 和 CryptoMom 簽約，以提供端到端加密交易。

On the international front, we signed an agreement with ibex to offer crypto trading for Latin American. These recent wins are a strong testament to the product fit of our capabilities and the continued focus on growing our core crypto solution.

在國際方面，我們與 ibex 簽署了一項協議，為拉丁美洲提供加密貨幣交易。最近的這些勝利有力地證明了我們產品的能力以及對發展我們的核心加密解決方案的持續關注。

Recent market events have highlighted the difficulty in storing digital assets safely and the need for multi-custodian access and self custodial functionality. Our secure and compliant custody platform offers unparalleled protection and complete customer control over their assets. It utilizes multilayered technology and the latest breakthroughs in MPC cryptography with hardware isolation, ensuring that customer funds are protected from the various threats, including cyber attacks, internal collusion and human error.

最近的市場事件凸顯了安全存儲數字資產的難度以及對多託管訪問和自我託管功能的需求。我們安全合規的託管平台提供無與倫比的保護和客戶對其資產的完全控制。它利用多層技術和 MPC 密碼學的最新突破與硬件隔離，確保客戶資金免受各種威脅，包括網絡攻擊、內部共謀和人為錯誤。

Given this backdrop, we continue to see an increase in new client activity. We've successfully signed new clients and are in late-stage negotiations with multiple prospects in mining, family offices, registered investment advisers and corporate treasury industries. Qualified sales opportunities are up 10x in the first half of 2023 versus the second half of 2022.

在這種背景下，我們繼續看到新客戶活動的增加。我們已成功簽約新客戶，並正在與採礦業、家族辦公室、註冊投資顧問和企業財務行業的多個潛在客戶進行後期談判。與 2022 年下半年相比，2023 年上半年合格的銷售機會增加了 10 倍。

The custody platform generates stable recurring platform fees as well as assets under custody-based revenue, further diversifying our revenue. Bakkt's institutional-grade custody platform offers the security and licensing clients are looking for including qualified custodian status with the New York Department of Financial Services, comprehensive security controls, regulatory compliance and streamlined user management and consensus protocols.

託管平台產生穩定的經常性平台費用以及託管收入下的資產，進一步使我們的收入多元化。 Bakkt 的機構級託管平台提供客戶所需的安全和許可，包括紐約金融服務部的合格託管人身份、全面的安全控制、監管合規性以及簡化的用戶管理和共識協議。

Given its prominence as a strong anchor product, we're continuing to invest in our custody offering to meet demand from new and existing clients. We're redesigning the application to enhance our offering and exceed client expectations and anticipate launching the upgrade throughout the remainder of this year.

鑑於其作為強大的主力產品的突出地位，我們將繼續投資於我們的託管產品，以滿足新客戶和現有客戶的需求。我們正在重新設計該應用程序，以增強我們的產品並超越客戶的期望，並預計在今年剩餘時間內啟動升級。

In this enhanced offering, we'll maintain all of the elements that make Bakkt custody exceptional. It will continue to offer a compliance-first focused approach with multiple layers of security and outstanding operational management. These upgrades will make it easy to launch additional products such as the ability to add new blockchain networks and the assets on those networks, retail open loop and institutional staking, which add yield generating opportunities for our institutional clients.

在此增強版產品中，我們將保留使 Bakkt 託管變得卓越的所有元素。它將繼續提供以合規為中心的方法，具有多層安全性和出色的運營管理。這些升級將使推出其他產品變得容易，例如添加新的區塊鍊網絡和這些網絡上的資產、零售開環和機構質押的能力，這為我們的機構客戶增加了產生收益的機會。

We have a new multi-faceted strategic agreement with Fireblocks. As part of this agreement, Bakkt will provide Disaster Recovery Services to Fireblocks' Off-Exchange customers and we will join the Fireblocks Qualified Custodian Network. The Fireblocks Off-Exchange solution allows participants to maintain control of their private keys without sacrificing the convenience and speed of trading on centralized exchanges. This has become a high focused product for the market as recent misappropriation of customer funds and exchanges has led to the demand for safe trading solutions.

我們與 Fireblocks 達成了一項新的多方面戰略協議。作為該協議的一部分，Bakkt 將向 Fireblocks 的場外客戶提供災難恢復服務，並且我們將加入 Fireblocks 合格託管人網絡。 Fireblocks Off-Exchange 解決方案允許參與者保持對其私鑰的控制，而不會犧牲中心化交易所交易的便利性和速度。由於最近盜用客戶資金和交易所導致了對安全交易解決方案的需求，這已成為市場高度關注的產品。

We're also integrating Fireblocks' technology to fortify our custody offerings. For Disaster Recovery Services, we will leverage our secure infrastructure to provide backup storage to ensure customer funds are safe and recoverable. Every Off-Exchange customer will require a Disaster Recovery package. So there's tremendous opportunity for Bakkt in safeguarding these assets.

我們還整合 Fireblocks 的技術來強化我們的託管服務。對於災難恢復服務，我們將利用我們的安全基礎設施提供備份存儲，以確保客戶資金安全且可恢復。每個 Off-Exchange 客戶都需要災難恢復包。因此，Bakkt 在保護這些資產方面有巨大的機會。

By joining the Fireblocks Qualified Custodian Network, we'll be connected to the thousands of organizations across the crypto ecosystem who use the network every day including exchanges, liquidity providers and custodians. There's only a select group of qualified custodians in this network, and we're proud that our differentiated secure and compliance-first focused approach enabled us to be selective. The broad reach of this network will fuel our pipeline of prospects for our full suite of crypto solution. We'll continue working with Fireblocks to jointly deliver additional use cases and capabilities to the market through the strategic alliance.

通過加入 Fireblocks 合格託管人網絡，我們將連接到加密生態系統中每天使用該網絡的數千個組織，包括交易所、流動性提供商和託管人。該網絡中只有一組經過挑選的合格託管人，我們感到自豪的是，我們差異化的安全和合規性第一的方法使我們能夠進行選擇性。該網絡的廣泛覆蓋範圍將推動我們全套加密解決方案的前景。我們將繼續與 Fireblocks 合作，通過戰略聯盟共同向市場提供更多用例和功能。

With that, I'll turn it over to Karen to discuss our financial and operating results for this quarter.

接下來，我將把它交給凱倫討論我們本季度的財務和運營業績。

Thanks, Gavin. I will now walk you through our second quarter financial results. A quick reminder that this quarter includes the results of Apex Crypto, which we acquired on April 1, 2023. Apex Crypto materially increases our crypto service revenue, such that we now present crypto services revenue as a distinct component of our revenue. In accordance with GAAP, we are presenting crypto service revenue as well as crypto cost and execution clearing and brokerage fees on a gross basis since we are a principal executive services we provide to our customers.

謝謝，加文。現在我將向您介紹我們第二季度的財務業績。快速提醒一下，本季度包括我們於 2023 年 4 月 1 日收購的 Apex Crypto 的業績。Apex Crypto 大幅增加了我們的加密服務收入，因此我們現在將加密服務收入作為我們收入的一個獨特組成部分。根據公認會計原則，我們按總額列報加密服務收入以及加密成本、執行清算和經紀費用，因為我們是向客戶提供的主要執行服務。

By contrast, we are an agent in the loyalty redemption services we provide our loyalty customers. So loyalty revenue is presented on a one line net basis. Crypto cost and execution, clearing and brokerage fees, which we will refer to as crypto costs and ECB for the remainder of this call will drive crypto services revenue and the difference between these 2 line items represents crypto's trading contribution to margins. Please see the notes section of our earnings presentation for additional detail on crypto services revenue and related costs.

相比之下，我們是為忠誠客戶提供忠誠兌換服務的代理商。因此，忠誠度收入是按單線淨值呈現的。加密貨幣成本和執行、清算和經紀費用（在本次電話會議的其餘部分中，我們將其稱為加密貨幣成本和歐洲央行）將推動加密貨幣服務收入，這兩個項目之間的差異代表了加密貨幣交易對利潤的貢獻。請參閱我們收益演示的註釋部分，了解有關加密服務收入和相關成本的更多詳細信息。

Turning to Slide 13. We have our second quarter 2023 financial results. We had total revenues of $347.6 million, of which $335.3 million was gross crypto services revenue, which increased significantly due to our acquisition of Apex Crypto. We had $12.3 million of net loyalty services revenue.

轉向幻燈片 13。我們公佈了 2023 年第二季度的財務業績。我們的總收入為 3.476 億美元，其中 3.353 億美元是加密服務總收入，由於我們收購了 Apex Crypto，這一收入大幅增加。我們的忠誠度服務淨收入為 1,230 萬美元。

Operating expenses were $398.7 million in the period, which reflects a significant increase in crypto cost and ECB, driven by the related crypto services activity. During the quarter, we had $17.0 million of acquisition-related expenses, $10.4 million of this was a noncash accrual related to the estimated fair value of the contingent stack burn-out associated with our acquisition of Apex Crypto through 2025. We will update the estimated fair value of the contingent stock earn-out on a quarterly basis based on the forecasted gross crypto revenue plus cost and ECB associated with the Apex Crypto relationships. As such, the approved stock earn-out as of June 30 is subject to change as our revenue forecast changes. The 2023 and 2024 earn-outs will be finalized as part of our 2023 and 2024 year-end reporting.

該期間運營支出為 3.987 億美元，反映出加密成本和歐洲央行在相關加密服務活動的推動下大幅增加。在本季度，我們有 1700 萬美元的收購相關費用，其中 1040 萬美元是非現金應計費用，與我們到 2025 年收購 Apex Crypto 相關的或有堆棧燒毀的估計公允價值相關。我們將更新估計基於預測總加密貨幣收入加成本以及與Apex Crypto 關係相關的ECB，每季度或有股票盈利的公允價值。因此，截至 6 月 30 日批准的股票收益可能會隨著我們收入預測的變化而變化。 2023 年和 2024 年的盈利結果將作為我們 2023 年和 2024 年年終報告的一部分最終確定。

Operating expenses, excluding crypto costs and ECB were $64.7 million. Excluding acquisition-related expenses, operating expenses were $47.7 million, which represents a decrease of 16% year-over-year, primarily due to a reduction in total compensation of benefits as we are starting to see the benefit from earlier expense actions. The net loss for the quarter was $50.5 million, which resulted in a diluted net loss of $0.19 per share on an average diluted share base of 89.8 million shares. Net loss allocated to the noncontrolling interest in the operating company was $33.7 million, leaving a $16.8 million loss attributable to Bakkt Holdings Inc. or a net loss of $0.19 per share an average basic share count of 89.8 million shares.

不包括加密成本和歐洲央行的運營支出為 6470 萬美元。不包括收購相關費用，運營費用為 4770 萬美元，同比下降 16%，主要是由於我們開始看到早期費用行動帶來的好處，因此福利總補償減少。本季度淨虧損為 5050 萬美元，平均稀釋後股本為 8980 萬股，每股攤薄淨虧損為 0.19 美元。分配給運營公司非控股權益的淨虧損為 3,370 萬美元，Bakkt Holdings Inc. 的虧損為 1,680 萬美元，或者每股淨虧損為 0.19 美元，平均基本股數為 8,980 萬股。

Our total share count as of June 30 was 274.6 million shares. ICE remains our largest shareholder as they own 64% of our aggregate shares, which has remained relatively consistent with our shareholding in prior periods. Note that the percentage ownership is down slightly from prior periods due to new Class A share issuances and not due to the sale of shares by ICE.

截至 6 月 30 日，我們的總股數為 2.746 億股。 ICE 仍然是我們的最大股東，他們擁有我們總股份的 64%，這與我們之前的持股比例保持相對一致。請注意，所有權百分比較前期略有下降，這是由於新 A 類股票的發行，而不是由於 ICE 出售股票。

On Slide 14, we have our EBITDA and adjusted EBITDA for the second quarter of 2023. Adjusted EBITDA reflects adjustments for noncash and acquisition-related items that impacted the period. EBITDA and adjusted EBITDA for the quarter were losses of $47.2 million and $24.5 million, respectively. Adjusted EBITDA loss improved versus the prior year period, primarily due to lower compensation and benefit costs.

在幻燈片 14 中，我們列出了 2023 年第二季度的 EBITDA 和調整後 EBITDA。調整後 EBITDA 反映了影響該期間的非現金和收購相關項目的調整。本季度 EBITDA 和調整後 EBITDA 分別虧損 4720 萬美元和 2450 萬美元。調整後 EBITDA 損失較上年同期有所改善，主要是由於薪酬和福利成本下降。

On Slide 15, we show revenues for the company. Given the increase in crypto revenue resulting from our acquisition of Apex Crypto, we are now presenting revenue broken out between crypto and loyalty revenue in addition to the revenue detail for subscription and service revenue and transaction revenue.

在幻燈片 15 上，我們顯示了該公司的收入。鑑於我們收購 Apex Crypto 帶來的加密貨幣收入的增加，除了訂閱和服務收入以及交易收入的收入詳細信息之外，我們現在還提供加密貨幣收入和忠誠度收入之間的細分收入。

Total revenue in the second quarter of 2023 was $347.6 million. As I noted earlier, crypto services revenue is reported on a gross basis. For the second quarter, gross crypto services revenue was $335.3 million, which was the result of the increased crypto transaction volumes from our acquisition of Apex Crypto. Net loyalty revenues of $12.3 million were down 8% year-over-year. This was driven by a decline in subscription and service revenues, which were $5 million for the quarter, down 23% year-over-year. The reduction we saw here was primarily due to lower volume-based service revenue.

2023 年第二季度的總收入為 3.476 億美元。正如我之前指出的，加密服務收入是按總額報告的。第二季度，加密服務總收入為 3.353 億美元，這是我們收購 Apex Crypto 後加密交易量增加的結果。忠誠度淨收入為 1,230 萬美元，同比下降 8%。這是由於訂閱和服務收入下降所致，本季度訂閱和服務收入為 500 萬美元，同比下降 23%。我們在這裡看到的減少主要是由於基於數量的服務收入下降。

Service revenue has a variable component and is driven by activity levels at our customer call centers and technology development work on behalf of our clients. Loyalty transaction revenues of $7.3 million increased 6% year-over-year due to an increase in air travel volume. However, this was partially offset by lower hotel and car booking value which remains under pressure since the latter half of 2022.

服務收入有一個可變的組成部分，由我們的客戶呼叫中心的活動水平和代表客戶的技術開發工作驅動。由於航空旅行量的增加，忠誠度交易收入達到 730 萬美元，同比增長 6%。然而，這被酒店和汽車預訂價值的下降部分抵消，自 2022 年下半年以來，酒店和汽車預訂價值仍然面臨壓力。

Turning to Slide 16. We have total operating expense. Total expense for the second quarter was $398.7 million, includes $334.0 million of crypto costs in ECB. These costs are driven by crypto trading volume. SG&A expenses of $7.6 million were down 23% year-over-year due to a reduction in marketing expenses. Total compensation expense of $27.1 million declined 21% to the second quarter of 2022 due to lower head count and a decrease in noncash compensation expense.

轉向幻燈片 16。我們有總運營費用。第二季度總支出為 3.987 億美元，其中包括歐洲央行 3.34 億美元的加密成本。這些成本是由加密貨幣交易量驅動的。由於營銷費用減少，SG&A 費用為 760 萬美元，同比下降 23%。由於員工人數減少和非現金薪酬費用減少，2022 年第二季度的薪酬總額為 2710 萬美元，下降了 21%。

Other expenses of $30.1 million included $17.0 million of acquisition-related expenses, of which $10.4 million is the noncash accrual of Apex stock contingent earn-out as noted previously. We are pleased that we're starting to see the benefits in our gross margins from our prudent expense management actions. As a reminder, we expect the impact from earlier restructuring actions in 2023 to be $29 million of expense savings and an incremental $7 million of expense savings is expected in 2024.

3010 萬美元的其他費用包括 1700 萬美元的收購相關費用，其中 1040 萬美元是 Apex 股票或有盈餘的非現金應計費用，如前所述。我們很高興我們開始看到我們審慎的費用管理行動給我們的毛利率帶來的好處。提醒一下，我們預計 2023 年早期的重組行動將節省 2900 萬美元的費用，預計 2024 年將節省 700 萬美元的費用。

Turning to Slide 17. We have a new slide comparing gross crypto services revenue and crypto costs and ECB on a quarterly basis. You can see on this chart how crypto cost and ECB drive gross crypto services revenue. The gap in the 2 columns for a given time period depicts the net contribution to margin from crypto trading activities. Gross crypto services revenue of $335.3 million was impacted by lower industry-wide activity levels in May as you will see in our key performance indicators on the next slide. Crypto costs and ECB of $334.0 million were in line with revenue levels.

轉向幻燈片 17。我們有一張新幻燈片，按季度比較加密服務總收入和加密成本以及歐洲央行。您可以在此圖表中看到加密成本和歐洲央行如何推動加密服務總收入。給定時間段內兩列中的差距描述了加密貨幣交易活動對保證金的淨貢獻。 5 月份全行業活動水平較低，影響了 3.353 億美元的加密服務總收入，您將在下一張幻燈片的關鍵績效指標中看到這一點。加密成本和歐洲央行 3.34 億美元與收入水平一致。

On Slide 18, we have our key performance indicators. We have made updates to our KPI disclosures to provide additional details on volume activity for legacy Apex Crypto. Although our acquisition of Apex Crypto closed on April 1, 2023, we have included Apex Crypto in the historical KPI figures on this slide for comparison purposes.

在幻燈片 18 上，我們列出了關鍵績效指標。我們對 KPI 披露進行了更新，以提供有關舊版 Apex Crypto 交易量活動的更多詳細信息。儘管我們對 Apex Crypto 的收購已於 2023 年 4 月 1 日完成，但出於比較目的，我們已將 Apex Crypto 納入本幻燈片的歷史 KPI 數據中。

The KPIs we will not be disclosing are crypto-enabled accounts, transacting accounts, notional trade in volume and asset under custody. For more information on how we divide these metrics, please see the note section of our earnings presentation.

我們不會披露的關鍵績效指標包括加密貨幣賬戶、交易賬戶、名義交易量和託管資產。有關我們如何劃分這些指標的更多信息，請參閱我們收益演示的註釋部分。

We had $6.0 million crypto-enabled accounts at the end of the second quarter, which reflects a steady increase over time. Next, we have our transacting accounts, which we break out into crypto and loyalty accounts. There were 1.2 million transacting accounts in the second quarter, of which 740,000 were for loyalty redemption and 441,000 or crypto trading. Loyal redemption transacting accounts were up 9% year-over-year due to higher air travel activities. Crypto transacting accounts were down 10% sequentially due to the industry-wide slowdown in the crypto market activity in May.

截至第二季度末，我們擁有價值 600 萬美元的加密貨幣賬戶，這反映出隨著時間的推移穩步增長。接下來，我們有交易賬戶，我們將其分為加密賬戶和忠誠度賬戶。第二季度有 120 萬個交易賬戶，其中 74 萬個用於忠誠度兌換，44.1 萬個用於加密貨幣交易。由於航空旅行活動增加，忠誠兌換交易賬戶同比增長 9%。由於 5 月份全行業加密貨幣市場活動放緩，加密貨幣交易賬戶環比下降 10%。

Notional traded volume is also broken out between crypto and loyalty redemption. Total notional traded volume was $531 million, of which $334 million was from crypto and $198 million was related to loyalty redemptions. On this chart, we have also included crypto industry trading volumes, which is the orange line. As depicted here, while our trading volumes were down 25% sequentially, our business outperformed the overall crypto market industry, which was down over 40% during the same time period.

名義交易量也分為加密貨幣和忠誠度兌換。名義交易總額為 5.31 億美元，其中 3.34 億美元來自加密貨幣，1.98 億美元與忠誠度兌換相關。在此圖表中，我們還包括了加密貨幣行業的交易量，即橙色線。如圖所示，雖然我們的交易量環比下降了 25%，但我們的業務表現優於整個加密貨幣市場行業，後者同期下降了 40% 以上。

Meanwhile, loyalty redemption volume was down 3% year-over-year driven by lower hotel, rental car and merchandise redemption activity. Our assets under custody of $660 million declined 8% sequentially due to a reduction in certain coin prices.

與此同時，由於酒店、租車和商品兌換活動減少，忠誠度兌換量同比下降 3%。由於某些代幣價格下跌，我們託管的資產為 6.6 億美元，環比下降了 8%。

Turning to Slide 19, we have our condensed balance sheet. We ended the second quarter with $99.4 million of cash, cash equivalents and available-for-sale securities. In the second quarter, we had cash usage of $18.2 million. Second quarter cash usage included $5.0 million for acquisition-related expenses, a $2.7 million marketing partnership payment and $1.8 million of insurance costs.

轉向幻燈片 19，我們看到了簡明的資產負債表。截至第二季度末，我們擁有 9,940 萬美元的現金、現金等價物和可供出售證券。第二季度，我們的現金使用量為 1820 萬美元。第二季度現金使用包括 500 萬美元的收購相關費用、270 萬美元的營銷合作夥伴付款和 180 萬美元的保險費用。

On Slide 20, we have updated our full year 2023 outlook. Our updated guidance reflects the impact from the acquisition of Apex Crypto, taking into consideration the disclosure of revenues on a gross basis and associated crypto trading costs as well as the current market environment.

在幻燈片 20 中，我們更新了 2023 年全年展望。我們更新的指引反映了收購 Apex Crypto 的影響，同時考慮了總收入的披露和相關的加密交易成本以及當前的市場環境。

For the full year 2023, we expect revenues to be in the range of approximately $2,132 million to $3,771 million. This includes gross crypto revenues of approximately $2,077 million to $3,716 million, which includes the impact from Apex Crypto. Our revised forecast also reflects the solid progress we have made signing up new clients and international expansion, as well as the recent industry-wide slowdown we've seen in crypto market volumes.

2023 年全年，我們預計收入約為 21.32 億美元至 37.71 億美元。這包括約 20.77 億美元至 37.16 億美元的加密貨幣總收入，其中包括 Apex Crypto 的影響。我們修訂後的預測還反映了我們在簽約新客戶和國際擴張方面取得的堅實進展，以及我們最近看到的加密貨幣市場交易量全行業放緩的情況。

We expect full year 2023 crypto trading costs to be in the range of $2,069 million to $3,702 million. This is in line with our expectations for gross crypto revenues. Our full year 2023 outlook for loyalty net revenues is expected to be around $55 million. We expect loyalty transaction revenues to be relatively flat coming off a strong 2022 post-COVID rebound. This contrasts with our expectations for the loyalty business at the beginning of the year where we expected continued growth in transaction volumes from 2022 levels.

我們預計 2023 年全年加密貨幣交易成本將在 20.69 億美元至 37.02 億美元之間。這符合我們對加密貨幣總收入的預期。我們預計 2023 年全年忠誠度淨收入約為 5500 萬美元。我們預計忠誠度交易收入在 2022 年新冠疫情后強勁反彈後將相對持平。這與我們年初對忠誠度業務的預期形成鮮明對比，當時我們預計交易量將在 2022 年的水平上持續增長。

What we have seen so far this year is durability of the 2022 loyalty transaction volume, which effectively reset post-COVID. We've also updated our loyalty revenue outlook to reflect the lower royalty service volumes we've experienced in the recent quarters. As a reminder, the guidance we gave earlier this year for net revenue was $62 million to $72 million. If you net our crypto costs against gross crypto services revenue and add that to net loyalty revenues, the expected contribution to margin is $64 million to $70 million.

今年到目前為止，我們看到的是 2022 年忠誠度交易量的持久性，這有效地重置了新冠疫情后的情況。我們還更新了忠誠度收入展望，以反映最近幾個季度我們經歷的版稅服務量下降。提醒一下，我們今年早些時候給出的淨收入指導為 6200 萬至 7200 萬美元。如果將我們的加密成本與加密服務總收入相加，並將其添加到忠誠度淨收入中，則預計對利潤的貢獻為 6400 萬至 7000 萬美元。

For the full year 2023, we expect net cash used in operating activities to be $78 million to $84 million. You will recall that the guidance we provided earlier in the year was operating cash usage of $100 million to $110 million, so a significant improvement here due to our focus on disciplined expense management.

2023 年全年，我們預計經營活動使用的現金淨額為 7800 萬美元至 8400 萬美元。您可能還記得，我們今年早些時候提供的指導是運營現金使用量為 1 億至 1.1 億美元，因此由於我們注重嚴格的費用管理，因此有了顯著的改進。

Free cash flow usage is expected to be $90 million to $96 million. This compares to our prior guidance of free cash flow usage of $105 million to $115 million. This reflects a 70% to 80% reduction in free cash flow usage for the second half of the year versus the first half as we continue to focus on prudently managing our expense base.

自由現金流使用量預計為 9000 萬至 9600 萬美元。相比之下，我們之前的自由現金流使用指導為 1.05 億至 1.15 億美元。這反映出，隨著我們繼續專注於審慎管理我們的費用基礎，下半年的自由現金流使用量比上半年減少了 70% 至 80%。

I'll now pass it back to Gavin for his closing remarks.

現在我將把它傳回給加文，讓他作結束語。

Thanks, Karen. Just a few final one. We've made substantial progress this past quarter, and we're building momentum for future growth. We were at a pivotal moment at the beginning of the quarter, having just closed our acquisition of Apex Crypto on April 1. We've been off to the races soon, integrating Apex Crypto, launching new capabilities, expanding internationally, signing new client relationships and building new strategic alliances with leading brands such as Plaid and Fireblocks.

謝謝，凱倫。最後幾張而已。上個季度我們取得了實質性進展，並且正在為未來的增長積蓄動力。我們正處於本季度初的關鍵時刻，剛剛於 4 月 1 日完成了對 Apex Crypto 的收購。我們很快就開始了競爭，整合 Apex Crypto、推出新功能、國際擴張、簽署新客戶關係與Plaid 和Fireblocks 等領先品牌建立新的戰略聯盟。

I'm proud of our teams who have worked tirelessly to make this progress happen in such a short amount of time. There's still so much more to come. We pulled a platform that's really ready to take off and grow. We've made many of our big investments, and we're now leveraging the capabilities to scale our business. We will continue to work hard every day to deliver strong results to our clients, our partners and our shareholders. I'm optimistic about our future. I can't wait to share more as we continue to execute and win. Thank you for joining us today.

我為我們的團隊感到自豪，他們不懈努力，在如此短的時間內取得了這一進展。還有很多事情要做。我們建立了一個真正準備好起飛和發展的平台。我們已經進行了許多重大投資，現在正在利用這些能力來擴展我們的業務。我們將繼續每天努力工作，為我們的客戶、合作夥伴和股東帶來強勁的業績。我對我們的未來持樂觀態度。隨著我們繼續執行並取得勝利，我迫不及待地想分享更多信息。感謝您今天加入我們。

I'll turn it over to Ann to manage Q&A.

我會將其交給 Ann 來管理問答。

Thanks, Gavin. Let's move over to questions from the investor community. Leading into our Q&A session, we'll start by answering the top questions from Say ranked by number of votes. After that, we'll turn to live questions from the analyst community.

謝謝，加文。讓我們轉向投資者群體的問題。在問答環節中，我們將首先回答 Say 按票數排名的熱門問題。之後，我們將轉向分析師社區的實時提問。

Our first question comes from working (inaudible) who would like an update on the progress we've made on previously announced partnerships. They know that crypto market conditions have improved in the last quarter significantly and wants to know what this means to our partnerships. Gavin, can you take the question?

我們的第一個問題來自工作人員（聽不清），他們希望了解我們在之前宣布的合作夥伴關係方面取得的最新進展。他們知道加密貨幣市場狀況在上個季度顯著改善，並想知道這對我們的合作夥伴關係意味著什麼。加文，你能回答這個問題嗎？

Yes, sure. Look, I'm happy to. Thanks for the question. We discussed in detail during our prepared remarks the substantial progress you've seen us make recently, building out our client base and forging new collaborations with industry leaders such as Plaid and Fireblocks. But we're really pleased with the momentum that we're building and it really is a proof point of how our acquisition of Apex Crypto could not have happened at a better time.

是的，當然。看吧，我很高興。謝謝你的提問。我們在準備好的發言中詳細討論了您所看到的我們最近取得的實質性進展，建立了我們的客戶群並與 Plaid 和 Fireblocks 等行業領導者建立了新的合作。但我們對我們正在建立的勢頭感到非常滿意，這確實證明了我們收購 Apex Crypto 的時機再好不過了。

Our ability to expand into the rapidly growing fintech space and into international markets is even more compelling right now. Although we're seeing some more activity in the U.S. around regulation for crypto, we're still not where we need to be. The lack of regulatory clarity for crypto has kept the activation of our client and partners on [board.] We've long since completed most of the integration and go-to-market work with our client and partners and we'll be ready to go when the time is right to enter the market.

我們擴展到快速增長的金融科技領域和國際市場的能力現在更加引人注目。儘管我們看到美國圍繞加密貨幣監管開展了更多活動，但我們仍然沒有達到我們需要的水平。由於加密貨幣監管缺乏明確性，我們的客戶和合作夥伴一直保持著積極的態度。我們早已與客戶和合作夥伴完成了大部分整合和上市工作，我們將做好準備當時機成熟時就進入市場。

We're making good progress with our non-trade clients. With Caesars, we are actively engaged and executing with them to launch crypto rewards. Our cross-functional teams, including engineering, sales, marketing and design are collaborating closely to activate these capabilities. Stay tuned as we anticipate providing additional announcements on this before not too long.

我們與非貿易客戶的合作取得了良好進展。與凱撒一起，我們積極參與並與他們一起執行以推出加密貨幣獎勵。我們的跨職能團隊（包括工程、銷售、營銷和設計）正在密切合作，以激活這些能力。請繼續關注，我們預計不久之後將就此發布更多公告。

Thanks, Gavin. Next, we have another question from working (inaudible) who would like to know why Bakkt was not selected to provide custody solutions for any of the recently announced Bitcoin spot ETF despite our compliance-first approach? Karen, can you take this one?

謝謝，加文。接下來，我們還有一個來自工作人員（聽不清）的問題，他們想知道為什麼儘管我們採用合規第一的方法，但Bakkt 沒有被選擇為任何最近宣布的比特幣現貨ETF 提供託管解決方案？凱倫，你能拿走這個嗎？

Sure. Happy to take that question. Custody has always been a very important part of our business. Our secured and reliable platform is trusted by clients and is the backbone of our company. That said, historically, we have focused much of our sales and marketing efforts and the more scalable go-to-market opportunities through our B2B2C approach. While custody has always been an important part of the platform, given our focus on B2B2C, we were not always aggressively marketing our custody capabilities to win new business.

當然。很高興回答這個問題。託管一直是我們業務中非常重要的一部分。我們安全可靠的平台深受客戶信賴，是我們公司的支柱。也就是說，從歷史上看，我們主要通過 B2B2C 方法集中銷售和營銷工作以及更具可擴展性的進入市場機會。雖然託管一直是平台的重要組成部分，但考慮到我們專注於 B2B2C，我們並不總是積極營銷我們的託管能力來贏得新業務。

We have been fortunate that our clients are proactively reaching out to us with interest in our secure, trusted institutional-grade custody platform. This influx of client interest has been even more pronounced following recent disruptive events in the crypto markets, which have highlighted the difficulty in storing digital assets safely and the need for multi-custodian access and secure self-custodial functionality. We have been successfully signing up new clients for our custody products, and we are focused on building this momentum to continue expanding our client base and custody capabilities.

我們很幸運，我們的客戶主動聯繫我們，對我們安全、值得信賴的機構級託管平台感興趣。在加密貨幣市場最近發生的顛覆性事件之後，客戶興趣的湧入更加明顯，這些事件凸顯了安全存儲數字資產的難度以及對多託管訪問和安全自我託管功能的需求。我們已經成功為我們的託管產品簽約了新客戶，我們致力於建立這一勢頭，以繼續擴大我們的客戶群和託管能力。

Thanks, Karen. Next, a few people have asked about international expansion and a status update around when we expect to launch. I think we answered this in the prepared remarks. But Gavin, please add any additional thoughts you might have here.

謝謝，凱倫。接下來，一些人詢問了國際擴張以及我們預計何時推出的狀態更新。我想我們在準備好的發言中回答了這個問題。但是加文，請在此添加您可能有的任何其他想法。

We mentioned earlier in the prepared remarks that we've signed an agreement with ibex to offer crypto trading for Latin America which we expect to launch in the fourth quarter of this year. We're working closely with our existing clients to bring our capabilities into the United Kingdom, European Union, Hong Kong and Australia. While we're making solid progress on these efforts and hope to be live soon, as everything we do, we're being careful to ensure that we're following all of the rules and regulations in these markets.

我們之前在準備好的發言中提到，我們已經與 ibex 簽署了一項協議，為拉丁美洲提供加密貨幣交易，我們預計將於今年第四季度推出。我們正在與現有客戶密切合作，將我們的能力引入英國、歐盟、香港和澳大利亞。雖然我們在這些努力上取得了紮實的進展，並希望盡快上線，但正如我們所做的一切一樣，我們會小心確保遵守這些市場的所有規則和規定。

Our compliance-first focused approach is what differentiates us, and we do not make compromises with it. We think that we're getting close with expansion into additional markets, and I hope to share more with you soon.

我們以合規為中心的方法使我們與眾不同，並且我們不會對此做出妥協。我們認為我們即將向其他市場擴張，我希望很快與您分享更多信息。

Thanks for that, Gavin. Our final question from the Say platform will be from Jonathan P who asks, will Bakkt be a company that investors will look back on and be proud of having invested their hard earned money into? Karen this one is for you.

謝謝你，加文。 Say 平台的最後一個問題來自 Jonathan P，他問道，Bakkt 會成為一家讓投資者回顧並為將辛苦賺來的錢投入其中而感到自豪的公司嗎？凱倫，這個是給你的。

Sure, happy to take that on. Hopefully, you've gathered some of our strategic highlights for the quarter, a great amount of progress that we've made and the momentum that we're building. We're taking the (inaudible) platform that we've worked tirelessly to build and leveraging it to scale and grow. We've done the heavy-lifting already with the investments and the infrastructure build and the product development. Now it's our time to scale and grow.

當然，很高興接受這一點。希望您已經了解了我們本季度的一些戰略亮點、我們取得的巨大進展以及我們正在建立的勢頭。我們正在利用我們孜孜不倦地構建的（聽不清）平台，並利用它來擴展和發展。我們已經完成了投資、基礎設施建設和產品開發的繁重工作。現在是我們擴大規模和發展的時候了。

I truly believe that Bakkt is well positioned to succeed and win, and our teams work day and night to make that happen. I'm extremely proud to be a part of this organization. And with that, our shareholders will look back and be proud of all that we've accomplished. I know being an investor in our stock has not always been an easy journey, and I thank you for sticking with us. While we can't control all of the market and economic factors that have negatively impacted our stock, we will continue to control what we can to drive positive shareholder value. That includes a disciplined expense management, balanced with strategic capital allocation in areas where there is a clear path to profitability.

我堅信 Bakkt 處於成功和勝利的有利位置，我們的團隊夜以繼日地努力實現這一目標。我非常自豪能夠成為這個組織的一員。這樣，我們的股東將在回顧過去時為我們所取得的一切感到自豪。我知道成為我們股票的投資者並不總是一段輕鬆的旅程，我感謝您堅持我們。雖然我們無法控制對我們股票產生負面影響的所有市場和經濟因素，但我們將繼續控制一切，以推動積極的股東價值。這包括嚴格的費用管理，與有明確盈利路徑的領域的戰略資本配置相平衡。

Thanks, Karen. And with that, I would now like to turn the call back over to the operator to open up the phone line to take questions from the analyst community.

謝謝，凱倫。現在，我想將電話轉回給接線員，以開通電話線路，回答分析師群體的問題。

(Operator Instructions) Our first question today comes from Trevor Williams from Jefferies.

（操作員說明）今天我們的第一個問題來自 Jefferies 的 Trevor Williams。

Great. Maybe to start, Gavin, just would love your perspective on the regulatory environment, all the moving pieces? I know it's a very fluid month-to-month situation, but just maybe kind of the state of the union of how you guys view the regulatory environment, what you're expecting to come out of Congress. If anything, over the next 6 to 12 months, how some of the recent SEC actions in court cases, how many of that affects you guys? So would just love kind of your broader perspective on it.

偉大的。也許首先，加文，我會喜歡你對監管環境和所有動態因素的看法？我知道每個月的情況都非常不穩定，但這也許只是你們如何看待監管環境以及你們對國會的期望的國情咨文。如果有的話，在接下來的 6 到 12 個月內，SEC 最近在法庭案件中採取的一些行動對你們有多少影響？所以我會喜歡你對它更廣泛的看法。

Thanks for the question. I think when you look overall, I think it still is a tail of the U.S. versus what's happening outside of the U.S. In the U.S., obviously, the ripple decision has been a -- sort of a setback to the SEC with respect to some of the enforcement actions that we've seen against industry participants looking at unregistered securities. But when you look at it as a whole, I think it will act as a catalyst for where we're going with Congress, and we'll start to see some movement.

謝謝你的提問。我認為，當你從整體上看時，我認為這仍然是美國與美國以外發生的事情的尾巴。在美國，顯然，連鎖反應決定是美國證券交易委員會在某些方面的挫折。我們看到針對未註冊證券的行業參與者採取的執法行動。但當你從整體上看時，我認為它將成為我們與國會合作的催化劑，我們將開始看到一些進展。

But when we think about it overall, I think the lack of clarity on how crypto should be regulated is still apparent with where we are. While I'm hopeful that Congress is paying attention to this, and I'm encouraged by the progress that we've seen, I think the market structure bill in the house is a good example. As I said, there's a long way to go before it or any of the other bills coming for more. We continue to make our voice heard on Capitol Hill to sort of encourage Congress to resolve the lack of clarity quickly.

但當我們整體思考時，我認為在我們所處的情況下，加密貨幣應該如何監管仍然缺乏明確性。雖然我希望國會能夠關注這一點，並且我對我們所看到的進展感到鼓舞，但我認為眾議院的市場結構法案就是一個很好的例子。正如我所說，在它或任何其他法案提出更多要求之前，還有很長的路要走。我們繼續在國會山發出我們的聲音，以鼓勵國會迅速解決缺乏清晰度的問題。

I think when we look outside of the U.S., I think we're seeing clarity coming to some of the markets that we've spoken about in our prepared remarks and ones that we're excited about, and we see the entry. But I think here in the U.S., we're still seeing that ambiguity. And it's that lack of clarity that has moved forcing some of the participants to still sit back and continue to watch what's happening with that landscape because without the clarity, they're unsure about what their entry strategy should be.

我認為，當我們放眼美國以外的地區時，我們會看到我們在準備好的評論中談到的一些市場和我們感到興奮的市場正在變得清晰，並且我們看到了進入的市場。但我認為在美國，我們仍然看到這種模糊性。正是這種缺乏清晰度迫使一些參與者仍然袖手旁觀，繼續觀察這一領域正在發生的事情，因為如果沒有清晰度，他們就不確定自己的進入策略應該是什麼。

Got it. That's helpful. And then maybe for both you and Karen, it's nice to see the cash burn coming down just a little -- maybe give us a sense for kind of where some of the reallocated priorities have been just within kind of your investment spend framework where maybe kind of deemphasized or reemphasized within the updated outlook for expenses?

知道了。這很有幫助。然後也許對你和凱倫來說，很高興看到現金消耗略有下降——也許讓我們感覺到一些重新分配的優先事項恰好在你的投資支出框架內，也許是這樣在更新的支出前景中是不再強調還是重新強調？

I can take that. Trevor, so I'm glad that you noticed that I think we're making a lot of great progress in terms of reducing cash burn and really being prudent with expenses. So the trend that you see for the second quarter, that's going to actually continue. Our free cash flow for the second half of the year is going to be 70%, 80% less than what we had at the beginning of the year. A lot of that came through some very tough decisions that we had to make earlier in the year in terms of headcount reductions. But we're also at the point now where we've built a lot of the infrastructure and technology that we need to go to market. We are still investing in the crypto business, but we're really being prudent in those additional investments, making sure that we're putting them where there's immediate product market.

我可以接受。特雷弗，所以我很高興你注意到我認為我們在減少現金消耗和真正謹慎支出方面取得了很大進展。因此，您在第二季度看到的趨勢實際上將持續下去。我們下半年的自由現金流將減少 70%，比年初減少 80%。其中很多都是通過今年早些時候我們不得不在裁員方面做出的一些非常艱難的決定來實現的。但我們現在也已經構建了進入市場所需的大量基礎設施和技術。我們仍在投資加密貨幣業務，但我們對這些額外投資非常謹慎，確保我們將它們放在有直接產品市場的地方。

So one of the things that we talked about earlier in the presentation was custody. That's a great example of where the market is actually coming to us, recognizing what we can contribute with our platform, with our compliance-first approach, with the fact that we are Qualified Custodian. So custody is one of those areas where we're allocating capital because we see the return there.

因此，我們在演講之前討論的一件事是監護權。這是一個很好的例子，說明市場實際上正在走向我們，認識到我們可以通過我們的平台、我們的合規第一方法以及我們是合格託管人這一事實做出什麼貢獻。因此，託管是我們分配資本的領域之一，因為我們看到了那裡的回報。

And then we also continue to see the return in the opportunities on the crypto trading piece. Not only with our international opportunities, but as Gavin mentioned, we do see demand increase for the fiat rails that Bakkt historically has been able to provide. So that's another area where you'll see us continue to add capital. But at this point, I think with the actions that we took, as you've heard me talk about before, those actions reset the operating expenses by $29 million in 2023 with an additional $7 million reduction in 2024. So we're really looking to have this reset expense base to drive future growth.

然後我們還繼續看到加密貨幣交易機會的回報。不僅是我們的國際機會，而且正如 Gavin 提到的，我們確實看到 Bakkt 歷史上能夠提供的法定鐵路的需求增加。因此，這是我們繼續增加資本的另一個領域。但在這一點上，我認為通過我們採取的行動，正如您之前聽我談論的那樣，這些行動將2023 年的運營費用重置為2900 萬美元，並在2024 年額外減少700 萬美元。所以我們真的在尋找重置支出基礎以推動未來增長。

The next question on the line is from Andrew Bond from Rosenblatt Securities.

下一個問題來自羅森布拉特證券公司的安德魯·邦德。

So it looks like you guys are definitely starting to make some strong progress across the board here. With regards to custody, just thinking from a modeling perspective, when do you think new customer growth should begin to translate to meaningful revenue there?

所以看起來你們肯定已經開始在全面方面取得一些強勁的進展。關於託管，僅從建模角度思考，您認為新客戶增長何時應開始轉化為有意義的收入？

Yes. Andrew, it's Karen. So in terms of what we've given as the outlook for 2023, we haven't broken that up between custody and trading. I can just give you a little bit of color in terms of how we price those services. So typically, you're looking at a pricing model that has -- that's based on assets under custody was a minimum. And then you're also looking for -- looking at incremental transactional revenue withdraws and deposit activity. But as Gavin mentioned, it's -- we're offering more than just traditional custody. So for instance, the backup key work that we're doing, that is something that is actually a platform-based kind of -- almost like a subscription-based model. So you're going to see a combination of both of those things as we ramp that up into 2024.

是的。安德魯，是凱倫。因此，就我們給出的 2023 年前景而言，我們沒有將託管和交易分開。我可以就我們如何定價這些服務向您提供一些信息。因此，通常情況下，您會考慮一種基於託管資產的定價模型，該模型的最低限度是基於託管資產。然後您還要尋找增量交易收入提取和存款活動。但正如加文提到的，我們提供的不僅僅是傳統的監護權。例如，我們正在做的備份關鍵工作實際上是基於平台的——幾乎就像基於訂閱的模型。因此，當我們將其推進到 2024 年時，您將看到這兩種情況的結合。

Got it. Okay. And Karen, you mentioned kind of an outperformance in trading relative to the broader market. And there was some noted share shift during the quarter among some of your competitors. So I mean, can you talk about how you guys are looking at market share dynamic and if anything stands out for Bakkt broadly or particularly within some of the different Apex customer segments you guys have?

知道了。好的。凱倫，你提到了相對於大盤的交易表現優於大盤。本季度，一些競爭對手的份額發生了一些明顯的變化。所以我的意思是，您能否談談你們如何看待市場份額動態，以及 Bakkt 是否有什麼突出的地方，或者特別是在你們擁有的一些不同的 Apex 客戶群中？

So I think one of the things when we look at our trading activity compared to what we've seen in the broader market, we have a customer base through the acquisition of Apex that is based in fintech, they are active equity traders, and we see a strong correlation there between investors who our active equity traders and their propensity to trade in crypto as well. So I think -- compared to the broader market, I think we have an investor base that is probably more active as they see market volatility. So I think that's one of the reasons that we receive a little bit more durability. Our lows did not go as low as the market in general, and then we were able to revamp quickly. So as you probably know, May was probably the worst month off the 2nd quarter. I think everybody had a bad May, but our May was not nearly as bad as everybody else, and that's how importantly, our June rebounded faster than the market in general.

因此，我認為，當我們將我們的交易活動與我們在更廣泛的市場中看到的進行比較時，我們通過收購基於金融科技的 Apex 擁有了一個客戶群，他們是活躍的股票交易商，我們我們發現，我們活躍的股票交易者的投資者與他們進行加密貨幣交易的傾向之間存在很強的相關性。所以我認為，與更廣泛的市場相比，我認為我們的投資者基礎可能更加活躍，因為他們看到市場波動。所以我認為這是我們獲得更多耐用性的原因之一。我們的低點並沒有像一般市場那樣低，然後我們能夠迅速調整。正如您可能知道的那樣，五月可能是第二季度以來最糟糕的一個月。我認為每個人都經歷了一個糟糕的五月，但我們的五月並不像其他人那麼糟糕，這就是重要的是，我們的六月反彈速度比總體市場更快。

Okay. And just lastly, in terms of the partnerships with rewards, I know those were asked before, just thinking about actually the cross-sell opportunities to some of your -- the legacy Apex clients and has that kind of been in any progress there? And have you seen some interest from some of the clients that came over from Apex in your reward solutions?

好的。最後，就獎勵合作而言，我知道以前有人問過這些問題，只是想一下對您的一些遺留 Apex 客戶的交叉銷售機會，這方面是否取得了任何進展？您是否看到一些來自 Apex 的客戶對您的獎勵解決方案感興趣？

Andrew, I'll take that one. We certainly see it in terms of the discussions that we're having. I mean, there's interest around the engagement that these platforms want to be able to create with their customers. Obviously, they are highly engaged platforms because of the trading activity. What they're looking to do is to look at other ways in which they can potentially diversify the revenue streams or bring people back into their environment on a more frequent basis. And we think some of the rewards proposition, particularly on the crypto rewards side, have the ability to do that. So there's definitely been strong discussions with some of those clients. And we're hoping to see it turn into opportunity. But right now, their focus is on addressing and ensuring that their trading businesses work in the current backlog.

安德魯，我要那個。我們當然從我們正在進行的討論中看到了這一點。我的意思是，這些平台希望能夠與客戶建立互動，人們對此很感興趣。顯然，由於交易活動，它們是高度參與的平台。他們想要做的是尋找其他方法，使收入來源多樣化，或者讓人們更頻繁地回到他們的環境中。我們認為一些獎勵主張，特別是在加密貨幣獎勵方面，有能力做到這一點。因此，肯定與其中一些客戶進行了激烈的討論。我們希望看到它變成機會。但現在，他們的重點是解決並確保他們的貿易業務在當前積壓的情況下正常運轉。

The next question on the line is from John Roy from Water Tower Research.

下一個問題來自 Water Tower Research 的 John Roy。

Great. Thank you. So given that Apex just closed this quarter, how should we be thinking about the take rate on the crypto transactions there?

偉大的。謝謝。鑑於 Apex 本季度剛剛關閉，我們應該如何考慮那裡的加密貨幣交易的接受率？

This is Karen. That's a great question, especially because with this material increase in crypto revenue, our income statement is now showing a lot of big numbers on a gross basis. So maybe what's most helpful is if I take you through the statement of operations, and so how we think -- what we're seeing is take rate and what drives it. So when you think about the gross crypto services revenue that we have, the vast majority of that is from the gross trading volume that we have with our customers. But that is not the only thing that's been there. So there are platform minimums of these that also come into play with that line item.

這是凱倫。這是一個很好的問題，特別是因為隨著加密貨幣收入的大幅增加，我們的損益表現在顯示了許多基於總額的大數字。因此，也許最有幫助的是，如果我帶您瀏覽一下運營報表，以及我們的想法——我們所看到的是採用率以及驅動它的因素。因此，當您考慮我們擁有的加密服務總收入時，其中絕大多數來自我們與客戶的總交易量。但這並不是唯一的事情。因此，這些平台的最低要求也會與該訂單項一起發揮作用。

Crypto cost is really the cost of providing the crypto basically after the spread that we charge and then we have execution clearing and brokerage fees, which is really the -- if you think about how we partner with our partners, they're really serving us introducing our [growth] to us. And so that's the RevShare that we give them.

加密成本實際上是在我們收取的價差之後提供加密的成本，然後我們有執行清算和經紀費用，這實際上是 - 如果你考慮我們如何與我們的合作夥伴合作，他們真的在為我們服務向我們介紹我們的【成長】。這就是我們給予他們的收益分成。

So if you think about all those things together, as I mentioned in the call, the gross crypto services revenue, less the crypto cost and execution clearing and brokerage fees really represents the net contribution of crypto trading to our operations. And so if you do the math, for instance, for the second quarter, you're seeing a take rate of about 38 bps. And so again, that's really the -- it's the spread in the minimums that we get on the trading, less what we shared to our partners, which is really a byproduct of our B2B2C approach, which is what we think is a very efficient way to get access to all these customers.

因此，如果您將所有這些因素放在一起考慮，正如我在電話中提到的那樣，加密貨幣服務總收入減去加密貨幣成本以及執行清算和經紀費用確實代表了加密貨幣交易對我們運營的淨貢獻。因此，如果您計算一下，例如，第二季度，您會發現採用率約為 38 個基點。再說一遍，這實際上是我們在交易中獲得的最低價差，減去我們分享給合作夥伴的價差，這實際上是我們 B2B2C 方法的副產品，我們認為這是一種非常有效的方法接觸所有這些客戶。

So as we go forward, I think we'll be talking about how that take rate again -- but the difference between those 3 line items changes over time in the key drivers because every -- partners are different in terms of how they want to set fee spread and then we have different arrangements with different tiers of profit-sharing. So that is going to be somewhat dynamic over time. But we've been seeing it in the high 30s rate for some time.

因此，當我們繼續前進時，我想我們將再次討論如何採取率- 但這三個項目之間的差異在關鍵驅動因素中隨著時間的推移而變化，因為每個合作夥伴在他們想要的方式方面都不同設定費用差價，然後我們對不同層次的利潤分享進行不同的安排。因此，隨著時間的推移，這將是動態的。但我們已經看到它在 30 多歲的高比率已經有一段時間了。

Great. Now obviously, there's been a lot of discussion on OpEx. So it seems to be if you adjust for acquisition expense and crypto cost, your OpEx seems to be coming down. So what do we want to think about a run rate for OpEx going forward? And any kind of color you can give me on the noncash accrual for acquisition stuff, that would be helpful as well.

偉大的。顯然，現在已經有很多關於運營支出的討論。因此，如果您調整購置費用和加密成本，您的運營支出似乎會下降。那麼我們對未來運營支出的運行率有何看法？你可以給我關於收購的非現金應計費用的任何顏色，這也會有幫助。

Yes. Yes. Yes. So in terms of OpEx, I think, obviously, one of the biggest component is our compensation of benefit expense. So hopefully, the guidance that we provided earlier in terms of the impact of the decisions that we had made earlier in the year, it is coming down in the second half and then you'll see additional declines in that OpEx expense in 2024 when you get the full year impact of those decisions of about $7 million.

是的。是的。是的。因此，就運營支出而言，我認為，顯然，最大的組成部分之一是我們對福利費用的補償。因此，希望我們早些時候就今年早些時候做出的決定的影響提供的指導，它會在下半年下降，然後你會看到 2024 年運營支出進一步下降，當你這些決定對全年的影響約為700 萬美元。

As it relates to the accrual that is in the acquisition expense, it's probably a little bit unusual, but you have to think back to the structure that we put in place when we bought Apex. So there was -- if you recall, the cash component of the purchase price and then the were stock earn-outs that were dependent on revenue performance over certain periods. And so what you're seeing there in that $10.4 million noncash accrual is GAAP requires us every quarter to fair value that contingent consideration, that stock consideration that will be paid out through '24 and '25 based on our expected outlook of the contribution that Apex Crypto's customer base has to our net revenue.

由於它與收購費用中的應計費用有關，因此可能有點不尋常，但您必須回想一下我們購買 Apex 時所採用的結構。因此，如果您還記得的話，購買價格中的現金部分以及取決於特定時期的收入表現的股票收益。因此，您看到的 1040 萬美元非現金應計費用是 GAAP 要求我們每個季度對或有對價進行公允價值，該股票對價將根據我們對貢獻的預期前景在 24 年和 25 年支付Apex Crypto的客戶群影響了我們的淨收入。

So yes, the fact that we have an accrual is certainly not the whole $100 million potential stock compensation that they could get over '23 and '24 performance yet. But we are seeing -- based on what we see now, we see scenarios where some of that stock comp can give paid out. So that's we're (inaudible) for, but that's going to change every quarter. And it's really just having to wait until year-end '23 and year-end '24, where we actually fixed those amounts. And again, I remind you that, that is not a cash expense, that is all stock burnout.

所以，是的，我們的應計費用肯定不是他們在 23 和 24 年業績中可以獲得的全部 1 億美元潛在股票補償。但我們看到——根據我們現在所看到的情況，我們看到一些股票可以支付的情況。這就是我們（聽不清）的目的，但每個季度都會發生變化。實際上只需要等到 23 年底和 24 年底，我們就可以實際確定這些金額。我再次提醒您，這不是現金支出，而是所有股票的消耗。

(Operator Instructions) It appears we have no further questions. I'd like to hand back to Ann to conclude.

（操作員說明）看來我們沒有其他問題了。我想把結論交還給安。

Thank you, everyone, for attending our earnings call this morning. We look forward to connecting with you again soon. Take care.

謝謝大家參加今天早上的財報電話會議。我們期待很快再次與您聯繫。小心。

Ladies and gentlemen, this concludes our event. You may now disconnect

女士們先生們，我們的活動到此結束。您現在可以斷開連接