Bakkt Holdings Inc (BKKT) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Bakkt second quarter 2024 earnings conference call.

您好，歡迎參加 Bakkt 2024 年第二季財報電話會議。

(Operator Instructions) As a reminder, this conference call is being recorded.

（操作員說明）謹此提醒，本次電話會議正在錄音。

I will now turn over to Olivia Keavey, Senior Lead of Communications at Bakkt.

現在我將請 Bakkt 通訊高層 Olivia Keavey 負責。

Please go ahead.

請繼續。

Good morning and thank you for joining Bakkt's second quarter earnings call.

早安，感謝您參加 Bakkt 第二季財報電話會議。

Joining me on today's call are Andy Main, Bakkt's Chief Executive Officer; Ray Kamrath, Chief Commercial Officer for our Crypto business; and Karen Alexander, Chief Financial Officer.

參加今天電話會議的還有 Bakkt 執行長 Andy Main； Ray Kamrath，我們的加密貨幣業務首席商務官；和凱倫·亞歷山大，首席財務官。

Andy will provide a high level overview of Q2 results, the current crypto currency macro landscape, and our operational progress during the quarter.

安迪將提供第二季度業績、當前加密貨幣宏觀形勢以及我們在本季度的營運進度的高級概述。

Ray will provide an update on strategic initiatives and partnerships.

雷將提供有關策略舉措和合作夥伴關係的最新資訊。

And Karen will cover Bakkt's detailed financial results.

凱倫將報告 Bakkt 的詳細財務表現。

After the prepared remarks, we will answer questions we received from our investors through the Stay Technologies platform and any questions from the analyst community.

在準備好的發言之後，我們將回答投資者透過 Stay Technologies 平台提出的問題以及分析師社群提出的任何問題。

As a reminder, today's earnings call includes a separate supplemental presentation that can be found at our Investor Relations website at www.investor.bakkt.com. During today's call, we may make certain forward-looking statements.

提醒一下，今天的財報電話會議包括一個單獨的補充演示文稿，您可以在我們的投資者關係網站 www.investor.bakkt.com 上找到該演示文稿。在今天的電話會議中，我們可能會做出某些前瞻性陳述。

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.

這些陳述是基於管理階層目前的預期，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有重大差異。

For a more complete discussion on forward looking statements and the risks and uncertainties related to Bakkt's business, please refer to its filings with the Securities and Exchange Commission.

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，請參閱其向美國證券交易委員會提交的文件。

Further, in addition to discussing results that are calculated in accordance with generally accepted accounting principles, we'll also make references to certain non-GAAP financial measures.

此外，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。

For more detailed information on our non-GAAP financial disclosures, please refer to our earnings release, which can be found on our Investor Relations website.

有關我們的非公認會計準則財務披露的更多詳細信息，請參閱我們的收益發布，該發布可以在我們的投資者關係網站上找到。

Thanks.

謝謝。

And I'll now turn the call over to Andy.

我現在會把電話轉給安迪。

Thank you, Olivia, and good morning, everyone.

謝謝你，奧莉維亞，大家早安。

Thank you for joining Bakkt's second quarter 2024 earnings call.

感謝您參加 Bakkt 的 2024 年第二季財報電話會議。

It's great to speak to you all again.

很高興能再次與大家交談。

I'd like to start today by providing a high-level overview of our business performance, then dive into specific updates from our crypto and loyalty businesses.

我想從今天開始對我們的業務績效進行高級概述，然後深入探討我們的加密貨幣和忠誠度業務的具體更新。

As we cover strategic initiatives and partnerships, I'm delighted that Ray Kamrath, our Chief Commercial Officer, is with us today.

當我們討論策略計劃和合作夥伴關係時，我很高興我們的首席商務官 Ray Kamrath 今天與我們在一起。

Ray is going to provide an update on some significant news for our crypto business.

雷將為我們的加密業務提供一些重要新聞的最新消息。

Turning to Page 3 of our presentation, let's start with highlights of our Q2 financial performance.

前往我們簡報的第 3 頁，讓我們從第二季財務表現的亮點開始。

Q2 crypto and loyalty services revenue net of crypto costs and execution and clearing and brokerage fees was $14.8 million, up approximately 9% from Q2 last year, but down 30% sequentially.

第二季加密貨幣和忠誠度服務淨收入（扣除加密成本以及執行、清算和經紀費用）為 1,480 萬美元，比去年第二季度增長約 9%，但比上一季下降 30%。

Office $14.8 million, $12.8 million came from our loyalty business, which improved 4% year-over-year and decreased 3% sequentially.

辦公室收入 1,480 萬美元，其中 1,280 萬美元來自我們的忠誠度業務，年增 4%，環比下降 3%。

The remaining $2 million was generated from crypto services revenue, which increased 35% year-over-year, but declined 46% sequentially.

剩下的 200 萬美元來自加密服務收入，該收入年增 35%，但較上季下降 46%。

This was due to the downward trend in prices and notional crypto volume that followed the significant spike in March after the Bitcoin spot ETF approval, which had driven broader institutional interest.

這是由於比特幣現貨 ETF 獲準後，價格和名目加密貨幣交易量在 3 月大幅飆升，隨後價格和名目加密貨幣交易量出現下降趨勢，這引發了更廣泛的機構興趣。

OpEx, excluding crypto cost and execution and clearing and brokerage fees were $36.8 million, down approximately 43% year-over-year and 25% sequentially as a result of our Q1 cost restructuring initiatives.

由於我們第一季的成本重組舉措，營運支出（不包括加密成本以及執行、清算和經紀費用）為 3,680 萬美元，年減約 43%，較上季下降 25%。

Year-over-year, revenue growth and significantly lower costs improved our net loss by 30% year-over-year and our adjusted EBITDA loss by approximately 27% year-over-year.

與去年同期相比，營收成長和成本顯著降低使我們的淨虧損年減了 30%，調整後 EBITDA 虧損年減了約 27%。

Diving into our crypto business, let's start with our assets under custody.

深入探討我們的加密貨幣業務，讓我們從我們託管的資產開始。

At the end of the second quarter, our assets under custody stood at $975 million, down from $1.233 billion at the end of Q1, but up significantly from $660 million in the same quarter last year.

第二季末，我們的託管資產為 9.75 億美元，低於第一季末的 12.33 億美元，但較去年同期的 6.6 億美元大幅成長。

This was driven by stronger trading volumes across the entire market, including our platform.

這是由整個市場（包括我們的平台）交易量增加所推動的。

I'd also like to touch on some of the major changes in the regulatory landscape since our last call that we believe will provide tailwinds for our industry in the second half and beyond.

我還想談談自上次電話會議以來監管環境發生的一些重大變化，我們相信這些變化將為我們的行業在下半年及以後的發展提供動力。

On July 22, the SEC gave final approval for the spot Ethereum exchange traded funds or ETFs.

7 月 22 日，美國證券交易委員會最終批准了現貨以太坊交易所交易基金 (ETF)。

This approval is yet another positive indication of the improving regulatory landscape and bipartisan support for our industry.

此次批准是監管環境改善和兩黨對我們行業支持的另一個積極跡象。

Similar to the Bitcoin spot ETF earlier in the year, we believe approval of the ETH spot ETF provides further clarity and will likely act as another catalyst for continued mainstream adoption and investment going forward.

與今年稍早的比特幣現貨 ETF 類似，我們認為 ETH 現貨 ETF 的批准提供了進一步的明確性，並可能成為未來持續主流採用和投資的另一個催化劑。

With these regulatory advancements in mind, we remain extremely confident in our overall strategic direction to advance our institutional offerings and remain laser focused on scaling strategic partnerships, which I will cover next.

考慮到這些監管進展，我們對推進我們的機構產品的整體策略方向仍然非常有信心，並繼續專注於擴大戰略合作夥伴關係，我將在接下來介紹這一點。

In terms of our crypto business operations, we continue to double down on our commitment to expand our institutional crypto business, and here's a few highlights.

在我們的加密業務營運方面，我們繼續加倍致力於擴大我們的機構加密業務，以下是一些亮點。

In June, BakktX, our electronic communications network, executed its first trade between Bakkt Crypto Solutions and DV Chain, the first of many new liquidity providers that we're working to add to the platform.

6 月，我們的電子通訊網路 BakktX 執行了 Bakkt Crypto Solutions 和 DV Chain 之間的第一筆交易，DV Chain 是我們正在努力添加到該平台的眾多新流動性提供者中的第一個。

This milestone demonstrates our ability to bring offers rapidly to market, and in this case, offering seamless, efficient crypto trading solutions.

這一里程碑證明了我們將報價快速推向市場的能力，在這種情況下，我們提供無縫、高效的加密貨幣交易解決方案。

Additionally, we recently announced that we significantly enhanced our BakktX institutional capabilities with a licensing agreement with Crossover Markets.

此外，我們最近宣布，透過與 Crossover Markets 簽訂授權協議，我們大幅增強了 BakktX 機構能力。

This collaboration powers BakktX with Crossover's high-performance tech, providing institutional and professional traders with sub 10 microsecond matching latency, customizable and tailored liquidity streams, and significantly lower trading costs than incumbent crypto brokers and exchanges.

此次合作為BakktX 提供了Crossover 的高性能技術，為機構和專業交易者提供低於10 微秒的匹配延遲、可定制和定制的流動性流，並且比現有的加密貨幣經紀商和交易所顯著降低交易成本。

BakktX will be available to Bakkt's liquidity providers and a group of early adopters in the coming months.

BakktX 將在未來幾個月內向 Bakkt 的流動性提供者和一群早期採用者開放。

Users will benefit from Bakkt's prioritization of risk management, reliability, and compliance alongside capital markets friendly workflows for digital assets trading.

使用者將受益於 Bakkt 優先考慮的風險管理、可靠性和合規性以及資本市場友好的數位資產交易工作流程。

We will share more regarding the expected launch date in the very near future.

我們將在不久的將來分享更多有關預計發布日期的資訊。

At the end of May, we appointed Ray Kamrath as Bakkt's Chief Commercial Officer for our crypto business.

5 月底，我們任命 Ray Kamrath 為 Bakkt 加密業務的首席商務長。

I'm now delighted to introduce you to Ray.

現在我很高興向您介紹雷。

Ray is a Wall Street veteran with 30 years of experience in capital markets where he served as Global Head of Foreign Exchange and Prime Brokerage at Jefferies and Managing Director in Foreign Exchange, Sales, and Global Electronic Trading at Goldman Sachs.

Ray 是華爾街資深人士，在資本市場擁有 30 年經驗，曾擔任傑富瑞 (Jefferies) 外匯和大宗經紀業務全球主管以及高盛 (Goldman Sachs) 外匯、銷售和全球電子交易部門董事總經理。

We are extremely delighted to have someone Ray's caliber to help us scale our crypto business.

我們非常高興有像 Ray 這樣的人才來幫助我們擴展我們的加密業務。

With that, I'm happy to hand it over to Ray to share what we've accomplished recently in the market in terms of our strategic initiatives and partnerships.

至此，我很高興將其交給 Ray，分享我們最近在策略舉措和合作夥伴關係方面在市場上取得的成就。

Thanks, Andy.

謝謝，安迪。

Turning to slide 4.

轉到投影片 4。

As we've discussed in prior earnings calls, we are laser-focused on building the Bakkt ecosystem.

正如我們在先前的財報電話會議中所討論的那樣，我們專注於建立 Bakkt 生態系統。

I'm excited to share that we've continued to execute on that mission and are creating marketplace partnerships to make us stand out as an industry leader.

我很高興與大家分享，我們將繼續執行這項使命，並正在建立市場合作夥伴關係，以使我們脫穎而出，成為行業領導者。

This leadership is demonstrated by our prioritization of regulatory compliance at our comprehensive crypto solutions ecosystem.

我們在綜合加密解決方案生態系統中優先考慮監管合規性，證明了這種領先地位。

For institutions, we're building out our solution, BakktX, and this is where I'd like to tell you about our significant news.

對於機構，我們正在建立我們的解決方案 BakktX，這就是我想告訴您我們的重大消息的地方。

To scale BakktX on August 11, we entered into a letter of intent with Hidden Road, signaling our mutual intent that Hidden Road will provide platform services, including real-time risk management and back office functionality to the forthcoming BakktX Electronic Communication Network, the ECN.

為了在 8 月 11 日擴展 BakktX，我們與 Hidden Road 簽訂了一份意向書，表明我們的共同意向：Hidden Road 將為即將推出的 BakktX 電子通訊網路（ECN）提供平台服務，包括即時風險管理和後台功能。

Hidden Road is an important player in credit intermediation, providing prime brokerage and clearing solutions in FX, listed derivatives, OTC swaps, digital assets, and soon fixed income.

Hidden Road 是信用中介領域的重要參與者，提供外匯、上市衍生性商品、場外掉期、數位資產以及即將推出的固定收益領域的大宗經紀和清算解決方案。

When agreed, we expect this will enhance our ability to minimize counterparty and credit risk for institutional clients using BakktX through Hidden Road's real-time risk management platform.

一旦達成一致，我們預計這將增強我們透過 Hidden Road 的即時風險管理平台最大限度地降低使用 BakktX 的機構客戶的交易對手和信用風險的能力。

We believe that Bakkt partnering with Hidden Road and Crossover Markets is a winning combination.

我們相信 Bakkt 與 Hidden Road 和 Crossover Markets 的合作是一個成功的組合。

Our customers will benefit from Crossover's high-performance technology with sub 10 microsecond matching latency, high order throughput capability, customizable and tailored liquidity streams, and low trading costs.

我們的客戶將受益於 Crossover 的高性能技術，該技術具有低於 10 微秒的匹配延遲、高訂單吞吐能力、可自訂和量身定制的流動性流以及低交易成本。

This is matched with Hidden Road's enablement of a quicker, wider distribution channel for institutional market participants, while introducing new operational risk management and capital efficiencies.

這與 Hidden Road 為機構市場參與者提供更快、更廣泛的分銷管道相匹配，同時引入新的營運風險管理和資本效率。

This is all powered by Bakkt's unwavering commitment to security and compliance as well as our deep network of liquidity relationships and understanding of institutional liquidity requirements in the digital asset marketplace.

這一切都歸功於 Bakkt 對安全性和合規性的堅定承諾，以及我們深厚的流動性關係網絡和對數位資產市場機構流動性要求的理解。

We are positioning ourselves as an ideal partner for institutions seeking a professional, high-performance trading venue.

我們將自己定位為尋求專業、高效能交易場所的機構的理想合作夥伴。

On the client side, our relationship with partner Blockchain.com recently grew.

在客戶端方面，我們與合作夥伴 Blockchain.com 的關係最近有所發展。

Just this month, we expanded our services together into New York, helping them reach a wider audience in all 50 states.

就在這個月，我們將我們的服務擴展到了紐約，幫助他們在所有 50 個州覆蓋更廣泛的受眾。

This expansion demonstrates our commitment to providing top-tier services and being our clients' partner in growth.

此次擴張體現了我們致力於提供頂級服務並成為客戶成長合作夥伴的承諾。

These strategic alliances enhance our competitive advantage, positioning us to better serve our diverse client base and drive future growth.

這些策略聯盟增強了我們的競爭優勢，使我們能夠更好地服務多元化的客戶群並推動未來的成長。

I'll now turn it back over to Andy who will discuss our international strategy.

現在我將把它轉回安迪，他將討論我們的國際戰略。

Thank you, Ray.

謝謝你，雷。

Turning to slide 5, I'd like to give an update on our international strategy.

轉向投影片 5，我想介紹我們的國際策略的最新情況。

We are seeing growing interest from non-US based companies looking to establish a presence in the USA.

我們看到尋求在美國開展業務的非美國公司的興趣日益濃厚。

As such, we are shifting our strategy to provide these clients with the necessary infrastructure and regulatory support to enter the US market seamlessly.

因此，我們正在改變策略，為這些客戶提供必要的基礎設施和監管支持，以無縫進入美國市場。

We are among a select few with a BitLicense and [fear rails] in all US states to support their business.

我們是少數在美國所有州擁有 BitLicense 和 [fearrails] 來支持他們業務的少數公司之一。

This positions us well to capitalize on evolving market dynamics to drive future growth.

這使我們能夠很好地利用不斷變化的市場動態來推動未來的成長。

Karen will discuss how this affects our guidance.

凱倫將討論這如何影響我們的指導。

And we believe this change will yield a higher ROI for us and our clients.

我們相信這項變化將為我們和我們的客戶帶來更高的投資報酬率。

Turning to slide 6, I'd like to dive into our loyalty business.

前往投影片 6，我想深入探討我們的忠誠度業務。

As a reminder, we leverage our deep expertise in loyalty solutions to cater to major credit card and incentive programs in North America.

謹此提醒，我們利用我們在忠誠度解決方案方面深厚的專業知識來滿足北美主要信用卡和獎勵計劃的需求。

If you wish to take a closer look at it yourself, our recent updates to the corporate website have boosted the brand visibility of Bakkt loyalty.

如果您想親自仔細查看，我們最近對公司網站的更新提高了 Bakkt 忠誠度的品牌知名度。

So I encourage you to take a look.

所以我鼓勵你看一下。

Our loyalty business continues to perform with our sales volume numbers at $341.2 million year-to-date, looking on track to hit our full year forecast.

我們的忠誠度業務持續表現出色，年初至今銷售額達 3.412 億美元，預計將實現全年預測。

Our loyalty business operates at scale, as demonstrated by our consumer-facing rewards store fronts, attracting over 7 million visitors to date.

我們的忠誠度業務規模化運營，我們面向消費者的獎勵店面就證明了這一點，迄今為止吸引了超過 700 萬訪客。

It also operates with excellent performance with a 12% conversion rate.

它還具有出色的性能，轉換率高達 12%。

To add some context, in comparison to travel and retail websites, a conversion rate of 2% puts you among the top 20% in the industry.

補充一下背景信息，與旅遊和零售網站相比，2% 的轉換率使您躋身行業前 20% 之列。

A rate between 3% to 4% puts you in the top 10%.

3% 到 4% 之間的比率使您進入前 10%。

With Bakkt loyalty achieving a 12% conversion rate, this underscores and demonstrates Bakkt's exceptional performance in converting customers to purchase.

Bakkt 忠誠度實現了 12% 的轉換率，突顯並展示了 Bakkt 在轉換客戶購買方面的卓越表現。

Our loyalty business is poised for growth by taking advantage of consumer needs who want to maximize the value of earned loyalty points through various services and products as well as valuing loyalty points as an alternative currency given broader macroeconomic pressures on cash value.

我們的忠誠度業務將透過利用消費者的需求來實現成長，消費者希望透過各種服務和產品最大限度地提高所賺取的忠誠度積分的價值，並考慮到更廣泛的宏觀經濟對現金價值的壓力，將忠誠度積分作為替代貨幣進行評估。

We remain excited about the loyalty business and the growth opportunities it presents for Bakkt and our clients.

我們對忠誠度業務及其為 Bakkt 和我們的客戶帶來的成長機會仍然感到興奮。

We continue to invest in Bakkt loyalty.

我們持續投資於 Bakkt 忠誠度。

For example, we recently refreshed our loyalty program, offering higher quality benefits to our customers and improving delivery times, customer support and retention for managing costs effectively.

例如，我們最近更新了我們的忠誠度計劃，為客戶提供更高品質的福利，並改善交貨時間、客戶支援和保留，以有效管理成本。

We invested in transitioning our technology to a leading cloud provider, which has consequently enhanced operational efficiency, security, and customer insights.

我們投資將我們的技術轉移給領先的雲端供應商，從而提高了營運效率、安全性和客戶洞察力。

We also invested in recertifying PCI and SOC 2 standards and improved mobile device management security to further strengthen our operational stability and client trust.

我們也投資重新認證 PCI 和 SOC 2 標準並提高行動裝置管理安全性，以進一步增強我們的營運穩定性和客戶信任。

Finally, investments in product enhancements, including our switch to a holistic travel platform and expanded Apple Storefront offerings expect to increase our market competitiveness and profitability.

最後，對產品增強的投資，包括我們轉向整體旅行平台和擴大蘋果店面產品，預計將提高我們的市場競爭力和獲利能力。

On the expense side, we have reduced our direct expenses leading to significant improvements, which we expect to demonstrate in the second half of the year.

在費用方面，我們減少了直接費用，從而帶來了顯著的改善，我們預計將在今年下半年展示這一點。

Overall, Bakkt Loyalty Solutions is on track to deliver within the given guidance range of $53 million to $57 million in revenue for 2024.

總體而言，Bakkt Loyalty Solutions 預計在 2024 年實現 5,300 萬至 5,700 萬美元的收入指導範圍內。

Turning to page 7 and to wrap up.

翻到第 7 頁並結束。

We continue to make solid progress across the entire business for our 2024 strategic priorities.

我們繼續在整個業務領域取得紮實進展，以實現 2024 年的策略重點。

We've laid out these priorities in prior earnings calls.

我們在先前的財報電話會議中列出了這些優先事項。

As you have heard today, we are growing our client network and deepening our existing client relationships.

正如您今天所聽到的，我們正在擴大我們的客戶網絡並深化我們現有的客戶關係。

Secondly, we are expanding our product solutions and extending the Bakkt ecosystem.

其次，我們正在擴展我們的產品解決方案並擴展 Bakkt 生態系統。

And third, we are realigning our costs and prudently managing expenses.

第三，我們正在重新調整成本並審慎管理費用。

We will continue to be laser-focused on our three priorities.

我們將繼續專注於我們的三個優先事項。

Through the second quarter, we have reduced operating expenses and enhanced capital efficiencies from the integration of our regulated entities.

在第二季度，我們透過受監管實體的整合減少了營運費用並提高了資本效率。

Moving forward, we anticipate further improvements in our cash burn as we execute our strategic initiatives and lap some of the one-time restructuring costs.

展望未來，隨著我們執行策略性舉措並消化一些一次性重組成本，我們預期現金消耗將進一步改善。

We haven't included any of these new business lines in our current guidance, but certainly, we aim to improve overall company ROI with these new ventures.

我們目前的指導中沒有包含任何這些新業務線，但當然，我們的目標是透過這些新業務來提高公司的整體投資報酬率。

In conclusion, we are confident that our strategic focus on broadening our client network, expanding our product and solution offerings, and improving cost structures will drive us towards sustainable growth and profitability.

總而言之，我們相信，我們的策略重點是擴大我們的客戶網絡、擴大我們的產品和解決方案以及改善成本結構，這將推動我們實現永續成長和獲利。

We are well positioned to capitalize on the growing market and deliver value to our shareholders.

我們處於有利位置，可以利用不斷成長的市場並為股東創造價值。

I want to express my gratitude to our dedicated team for their hard work and commitment, which are driving our success and positioning Bakkt as a leader in the retail and institutional crypto markets as well as the loyalty industry.

我想對我們的敬業團隊表示感謝，他們的辛勤工作和奉獻精神推動了我們的成功，並將 Bakkt 定位為零售和機構加密貨幣市場以及忠誠度行業的領導者。

Thank you for your continued support.

感謝您一直以來的支持。

I'll now turn it over to Karen to walk us through the financials.

現在我將把它交給凱倫來引導我們了解財務狀況。

Karen?

凱倫？

Thanks, Andy.

謝謝，安迪。

I'll now walk you through our second quarter KPIs and financial results.

現在我將向您介紹我們第二季的 KPI 和財務表現。

A quick reminder, that in accordance with GAAP, we present crypto services revenue in crypto costs and execution, clearing and brokerage fees on a gross basis as we are a principal in the crypto services we provide our customers. by contrast, we are an agent in the loyalty redemption services we provide our loyalty customers.

快速提醒一下，根據公認會計準則，我們以加密成本以及執行、清算和經紀費用的形式呈現加密服務收入，因為我們是為客戶提供的加密服務的主體。相較之下，我們是為忠誠客戶提供忠誠兌換服務的代理商。

Therefore, our loyalty revenue is presented on a one line net basis.

因此，我們的忠誠度收入是按單線淨值呈現的。

Starting on Slide 9, we have our Q2 KPIs, which provide a snapshot of the underlying trends driving our business.

從幻燈片 9 開始，我們有第二季的 KPI，它提供了推動我們業務的基本趨勢的快照。

We ended the second quarter with $6.4 million of crypto-enabled accounts, reflecting a steady increase over the past 12 months.

截至第二季末，我們的加密貨幣帳戶數量為 640 萬美元，反映出過去 12 個月的穩定成長。

This growth underscores the increasing adoption and trust in our platform.

這種成長凸顯了我們平台的採用率和信任度不斷提高。

Next, we have our transacting accounts broken down into crypto and loyalty accounts.

接下來，我們將交易帳戶分為加密帳戶和忠誠帳戶。

There were 719,281 transacting accounts in the second quarter, of which 461,000 were for loyalty redemption and 258,000 were for crypto trades.

第二季有 719,281 個交易帳戶，其中 461,000 個用於忠誠度兌換，258,000 個用於加密貨幣交易。

Total notional traded volume was $672 million with $494 million attributable to crypto and $178 million to loyalty redemptions.

名目交易總額為 6.72 億美元，其中 4.94 億美元來自加密貨幣，1.78 億美元來自忠誠度兌換。

Crypto notional traded volume was down 42% sequentially but was up 48% year-over-year.

加密貨幣名目交易量較上季下降 42%，但年增 48%。

Assets under custody were $975 million, down from the previous quarter high of $1,233 million, driven by a settling of crypto prices compared to March 2024 highs.

受加密貨幣價格與 2024 年 3 月高點相比穩定的推動，託管資產為 9.75 億美元，低於上一季高點 12.33 億美元。

On slide 10, we show our total revenue broken out between our crypto and loyalty products.

在幻燈片 10 上，我們展示了我們的加密貨幣和忠誠度產品的總收入。

Total revenue for the second quarter of 2024 was $510 million.

2024 年第二季總營收為 5.1 億美元。

Gross crypto services revenue for the quarter was $497 million, an increase of 48% from the same quarter last year.

該季度加密服務總收入為 4.97 億美元，比去年同期成長 48%。

This growth trended with the overall market as overall crypto interest has increased since last year.

這種成長趨勢與整體市場一致，因為自去年以來整體加密貨幣興趣增加。

Our net loyalty revenues were $12.8 million, up 4% year-over-year, driven by $1.1 million increase in subscription and services revenue, partially offset by a $700,000 reduction in transaction revenue.

我們的淨忠誠度收入為 1,280 萬美元，年增 4%，這得益於訂閱和服務收入增加 110 萬美元，但部分被交易收入減少 70 萬美元所抵消。

Approximately half of the increase in subscription and service revenue was driven by an adjustment to the remaining life of one of our service contracts.

訂閱和服務收入成長的大約一半是由於我們一項服務合約剩餘期限的調整所致。

Moving on to slide 11, we have our total operating expenses.

轉到投影片 11，我們看到了總營運費用。

Total expenses for the quarter were $531.9 million, including $495.1 million of crypto costs in ECB, driven by trading volumes.

該季度的總支出為 5.319 億美元，其中包括由交易量推動的歐洲央行的 4.951 億美元加密貨幣成本。

SG&A expenses were $5.5 million, down 29.5% from Q1 2024, reflecting our ongoing efforts to maintain a disciplined expense structure.

SG&A 費用為 550 萬美元，較 2024 年第一季下降 29.5%，反映出我們為維持嚴格的費用結構而不斷做出的努力。

Total compensation expense was $22.4 million, a 17% decrease compared to the second quarter of 2023 due to lower headcount and a decrease in incentive bonuses and benefits.

由於員工人數減少以及激勵獎金和福利減少，總薪資支出為 2,240 萬美元，較 2023 年第二季下降 17%。

This reflects our commitment to maintaining a disciplined expense management.

這反映了我們對維持嚴格的費用管理的承諾。

On slide 12, we have our EBITDA and adjusted EBITDA for the second quarter of 2024.

在投影片 12 上，我們列出了 2024 年第二季的 EBITDA 和調整後 EBITDA。

Adjusted EBITDA reflects adjustments for non-cash restructuring and acquisition-related items that impacted period.

調整後的 EBITDA 反映了影響期間的非現金重組和收購相關項目的調整。

EBITDA and adjusted EBITDA for the quarter were losses of $36.6 million and $17.9 million, respectively.

本季 EBITDA 和調整後 EBITDA 分別虧損 3,660 萬美元和 1,790 萬美元。

Adjusted EBITDA loss for the three months ended June 30, 2024, decreased by $6.6 million or 26.9% as compared to the three months ended June 30, 2023.

截至2024年6月30日止三個月的調整後 EBITDA 虧損較截至2023年6月30日止三個月減少660萬美元，即26.9%。

The Decreased loss was primarily due to the contribution of increased revenues, a $4.7 million decrease in compensation and benefits expense and a $2.1 million decrease in selling, general and administrative expenses.

虧損減少主要是因為收入增加、薪資和福利費用減少 470 萬美元以及銷售、一般和管理費用減少 210 萬美元。

Turning to slide 13, we present our condensed profit and loss statement.

轉向投影片 13，我們展示了簡明損益表。

Net loss for the quarter was $35.5 million, of which $19.1 million was allocated to the non-controlling interest in the operating company and $16.4 million is attributable to Bakkt Holdings, resulting in a diluted loss of $2.67 per share on an average diluted share base of $6.2 million shares for both basic and diluted.

本季淨虧損為 3,550 萬美元，其中 1,910 萬美元分配給營運公司的非控制權益，1,640 萬美元歸屬於 Bakkt Holdings，導致每股攤薄虧損為 2.67 美元，平均攤薄股基數為基本股和稀釋股價值620 萬美元。

On slide 14, we have our condensed balance sheet as of June 30, 2024.

在投影片 14 上，我們列出了截至 2024 年 6 月 30 日的簡明資產負債表。

We ended the quarter with $60.7 million in cash, cash equivalents and available for sale securities.

本季結束時，我們擁有 6,070 萬美元的現金、現金等價物和可供出售證券。

After consideration of $7.4 million of net proceeds from the second funding of the registered direct offering proceeds in April and $10 million of restricted cash reductions driven by surety bond collateral releases, we utilized $31.3 million of our cash, cash equivalents and available for sale securities in the second quarter of 2024.

考慮到4 月註冊直接發行收益第二輪融資的740 萬美元淨收益以及擔保債券抵押品釋放推動的1,000 萬美元限制性現金減少後，我們將3,130 萬美元的現金、現金等價物和可供出售證券用於2024 年第二季。

Included in this utilization was $3.1 million of severance payments and $1.1 million for litigation settlement as well as approximately $7 million of working capital utilization related to loyalty business that we anticipate to reverse in Q3.

其中包括 310 萬美元的遣散費和 110 萬美元的訴訟和解費用，以及與忠誠度業務相關的約 700 萬美元的營運資金使用，我們預計這些資金將在第三季扭轉。

Excluding some of these lumpier items, we are continuing to see improvements in our cash utilization run rate from a lower operating expense base, which we will cover more in the guidance slide.

排除其中一些較大的項目，我們繼續看到我們的現金利用率在較低的營運費用基礎上有所改善，我們將在指導幻燈片中詳細介紹這一點。

Additionally, we disclosed in our 10-Q filed this morning that we have entered into a line of credit agreement with the Intercontinental Exchange Incorporated, our former parent company and our largest shareholder.

此外，我們在今天早上提交的 10-Q 報告中揭露，我們已與我們的前母公司和最大股東洲際交易所公司簽訂了信貸額度協議。

This agreement provides access to up to $40 million of additional cash during 2025 and will serve as an additional liquidity source to our current cash position, enabling us to continue focusing on near-term growth opportunities and delivering for our clients.

該協議將在 2025 年提供高達 4,000 萬美元的額外現金，並將作為我們當前現金狀況的額外流動性來源，使我們能夠繼續專注於近期成長機會並為客戶提供服務。

Moving on to slide 15.

繼續看投影片 15。

We have updated our 2024 full year outlook.

我們更新了 2024 年全年展望。

We have fine-tuned our expectations for 2024 revenue based on observed engagement metrics and updates to our go-to-market strategy.

我們根據觀察到的參與度指標和上市策略的更新調整了對 2024 年收入的預期。

We have not adjusted our expectation for net loyalty revenues of $53 million to $57 million consistent with the performance of that business in 2023.

我們尚未根據 2023 年該業務的業績調整我們對 5,300 萬美元至 5,700 萬美元淨忠誠度收入的預期。

We have adjusted our expected gross crypto revenue range to $2,550 million to $2,770 million and the associated crypto costs in ECB to $2,505 million to 2,755 million.

我們已將預期的加密貨幣總收入範圍調整為 25.5 億美元至 27.7 億美元，並將歐洲央行的相關加密貨幣成本調整為 25.05 億美元至 27.55 億美元。

When crypto costs from ECB are deducted from the expected gross crypto revenue, this implies a net revenue contribution from crypto trading of $10 million to $15 million as compared to the $15 million to $25 million range guided in May.

當歐洲央行的加密成本從預期的加密貨幣總收入中扣除時，這意味著加密貨幣交易的淨收入貢獻為1000 萬美元至1500 萬美元，而5 月份指導的範圍為1500 萬美元至2500 萬美元。

This guidance does not include any revenue projections from BakktX.

本指南不包括 BakktX 的任何收入預測。

There are several factors that drove the adjustment of our expected net revenue contribution from crypto trading.

有幾個因素推動了我們對加密貨幣交易的預期淨收入貢獻的調整。

First, we continue to consider a range of potential trading engagement metrics based on observed trading engagement in Q2 2024.

首先，我們根據 2024 年第二季觀察到的交易參與度繼續考慮一系列潛在的交易參與度指標。

Our expected revenue range for the full year 2024 considers an expectation that engagement metrics will continue at the levels observed in June 2024.

我們 2024 年全年的預期收入範圍考慮了參與度指標將繼續保持在 2024 年 6 月觀察到的水平的預期。

Secondly, we have updated the range of possible scenarios for the activation of new clients currently in our pipeline.

其次，我們更新了目前管道中啟動新客戶的可能場景範圍。

We have lowered our expectation for new client activations as we pivot our international strategy from a land and expand strategy to one of enabling non-US crypto natives to establish US market presence.

我們降低了對新客戶啟動的期望，因為我們將國際戰略從陸地和擴張戰略轉向了幫助非美國加密貨幣本地人建立美國市場的戰略之一。

Based on our current view of pipeline and current client growth, we have reduced our expectation for crypto trading account growth relative to the guidance I provided in May.

根據我們目前對通路和當前客戶成長的看法，相對於我在 5 月提供的指導，我們降低了對加密貨幣交易帳戶成長的預期。

We expect total operating expenses of $157 million to $162 million.

我們預計總營運費用為 1.57 億美元至 1.62 億美元。

We have reduced the upper end of our expected total operating expense range as we continue to see execution of our expense reduction initiatives.

隨著我們繼續看到費用削減計劃的執行，我們已經降低了預期總營運費用範圍的上限。

Similar to the May guidance, this guidance does not anticipate any acquisition or inorganic transaction expenses like the acquisition expenses we incurred in 2023 related to the acquisition of Bakkt Crypto.

與 5 月的指引類似，該指引不會預期任何收購或無機交易費用，例如我們在 2023 年因收購 Bakkt Crypto 而產生的收購費用。

The net of our operating expenses and non-cash expenses represent our expected cash operating expenses for 2024.

營運費用和非現金費用的淨額代表我們 2024 年的預期現金營運費用。

Expected operating cash flow usage of $72 million to $79 million reflects both expected revenue and expense ranges that I have gone through.

預期營運現金流量使用量為 7,200 萬至 7,900 萬美元，反映了我所經歷的預期收入和支出範圍。

The low end of the expected operating cash leases range has increased relative to the guidance I provided in May due to the reduction in the net revenue contribution from crypto.

由於加密貨幣帶來的淨收入貢獻減少，預期營運現金租賃範圍的下限相對於我 5 月提供的指導有所增加。

Free cash flow, which is a non-GAAP metric, is expected to be a usage between $79 million to $86 million.

自由現金流為非 GAAP 指標，預計使用量在 7,900 萬美元至 8,600 萬美元之間。

We expect to end the year with $35 million to $42 million of available cash, cash equivalents and available for sale securities.

我們預計到年底將擁有 3,500 萬至 4,200 萬美元的可用現金、現金等價物和可供出售證券。

The upper end of our forecasted end of year balance decreased in line with our updated expectations for crypto revenue.

我們預測的年終餘額上限有所下降，與我們對加密貨幣收入的最新預期一致。

We continue to believe that we have sufficient cash to fund our operations in 2024.

我們仍然相信我們有足夠的現金來為 2024 年的營運提供資金。

As you will note from this range, we expect our cash utilization to reduce over the course of 2024 as we achieve our revenue growth and expense reduction targets.

正如您從這個範圍中註意到的那樣，隨著我們實現收入成長和費用減少的目標，我們預計我們的現金利用率將在 2024 年期間減少。

While our cash utilization is subject to timing differences on a monthly basis, our expectation for end of year available cash, cash equivalents and available for sale securities implies an average monthly cash utilization for approximately $3.0 million to $4.3 million a month.

雖然我們的現金利用率每月會出現時間差異，但我們對年終可用現金、現金等價物和可供出售證券的預期意味著每月平均現金利用率約為 300 萬至 430 萬美元。

This expectation assumes that the approximately $7 million of loyalty working capital utilization that we observed at June 30, 2024, does not reoccur at December 31, 2024.

這項預期假設我們在 2024 年 6 月 30 日觀察到的約 700 萬美元的忠誠度營運資金利用率在 2024 年 12 月 31 日不會再次出現。

Thanks, everyone.

謝謝大家。

That concludes the prepared remarks section of our Q2 '24 earnings call.

我們的 24 年第二季財報電話會議準備好的評論部分到此結束。

I'll now pass it back to Olivia for the Q&A session.

我現在將其傳回給 Olivia 進行問答環節。

Thanks, Karen.

謝謝，凱倫。

Next, we'll move over to a couple of questions from the investor community.

接下來，我們將轉向投資人群體提出的幾個問題。

After that, we'll turn to live questions from the analyst community.

之後，我們將轉向分析師社群的即時提問。

Our first question from the investor community comes from Sayeed H. When do you expect to reach profitability?

投資者界的第一個問題來自 Sayeed H。

Please provide a realistic timeframe and provide the actions you will take to achieve this?

請提供一個現實的時間表並提供您將採取的行動來實現這一目標？

How will BakktX help in achieving profitability sooner?

BakktX 將如何協助更快獲利？

Andy, can you share your perspective here?

安迪，你能在這裡分享你的觀點嗎？

Thank you, Sayeed, for your question, and to being a fellow stockholder of Bakkt.

謝謝 Sayeed 的提問，也謝謝您成為 Bakkt 的股東。

We do anticipate reaching profitability but cannot give specific timelines and guidance beyond what we already provided on the call.

我們確實預計將實現盈利，但無法提供超出我們在電話會議中提供的具體時間表和指導。

It is largely contingent on the successful execution of our strategic priorities, which we remain laser-focused on, expanding our client network, broadening our product offerings, particularly our BakktX ECN, and new partnerships we have in place and in our pipeline and enhancing our cost management strategies.

這在很大程度上取決於我們策略重點的成功執行，我們仍然高度關注這些策略重點，擴大我們的客戶網絡，擴大我們的產品範圍，特別是我們的BakktX ECN，以及我們已經建立和正在醞釀的新合作夥伴關係，並增強我們的成本管理策略。

Of these, BakktX plays a crucial role here as it's designed to enhance our institutional offerings, providing a high-performance trading venue with lower costs and faster execution times.

其中，BakktX 在這裡發揮著至關重要的作用，因為它旨在增強我們的機構產品，以更低的成本和更快的執行時間提供高性能的交易場所。

This platform will attract more institutional clients and drive higher volumes and revenues, which are key to achieving our profitability goals.

該平台將吸引更多機構客戶並推動更高的銷售和收入，這是實現我們獲利目標的關鍵。

Next question from Matthew M and [Jack G H], which is on the topic of stock splits.

Matthew M 和 [Jack G H] 提出的下一個問題是關於股票分割的主題。

How do you plan on maintaining investor appetite for long-term investors after the loss and overall value from the 1 stock split to 25 stock split?

從1次股票分割到25次股票分割的損失和整體價值之後，您打算如何維持投資人對長期投資人的興趣？

Furthermore, why was the decision made to perform a stock split of that severity?

此外，為什麼決定進行如此嚴重的股票分割？

Are you planning on splitting the stock again?

您打算再次分割股票嗎？

Karen, can you take this one?

凱倫，你能拿走這個嗎？

Certainly.

當然。

Our decision to execute the 1 stock split to 25 stock split was primarily driven by the need to meet the NICE's minimum price requirements and maintain our stock listing.

我們決定將 1 股股票分割為 25 股股票分割，主要是因為需要滿足 NICE 的最低價格要求並維持我們的股票上市。

This action was crucial to ensure the stability and credibility of our stock in the market.

此舉對於確保我們股票在市場上的穩定性和可信度至關重要。

It has allowed us to attract institutional investors who have minimum price thresholds for their investments.

它使我們能夠吸引對投資有最低價格門檻的機構投資者。

It's important to clarify that stock splits or reverse stock split, like the one we conducted, does not change the underlying value of the company or the value of our company's shares.

需要澄清的是，股票分割或反向股票分割（就像我們進行的那樣）不會改變公司的基本價值或我們公司股票的價值。

Fundamentally, a stock split changes the number of shares you own, but it also adjusts the price per share proportionately.

從根本上說，股票分割會改變您擁有的股票數量，但也會按比例調整每股價格。

The total value of your investment remains the same.

您的投資總價值不變。

While we understand that this move might have been challenging to long-term investors, it was necessary to protect and enhance the long-term value of Bakkt.

雖然我們知道此舉可能對長期投資者構成挑戰，但有必要保護並提高 Bakkt 的長期價值。

At this time, we have no plans for another reverse stock split.

目前，我們沒有計劃進行另一次反向股票分割。

Instead, our focus is on driving growth and increasing our stocks' intrinsic value through strong operational performance and strategic initiatives.

相反，我們的重點是透過強勁的營運績效和策略舉措來推動成長並提高股票的內在價值。

Thanks, 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，現在我想將電話轉回給接線員，以開通電話線路來回答分析師社群的問題。

(Operator Instructions) Trevor Williams, Jefferies.

（操作員說明）Trevor Williams，Jefferies。

This is Spencer James on for Trevor.

我是史賓塞詹姆斯，替補特雷弗。

Andy, hey, Karen, and Ray, nice to meet you.

安迪，嘿，凱倫和雷，很高興認識你們。

Welcome to the Board.

歡迎來到董事會。

I wanted to ask on BakktX.

我想在 BakktX 上問。

Could you provide more color on how customer conversations are progressing?

您能否提供更多有關客戶對話進度的資訊？

And maybe comments on which customer segments BakktX will be best positioned to address at launch in coming months?

或許可以評論一下 BakktX 在未來幾個月推出時最能滿足哪些客戶群的需求？

Yes, super question.

是的，超級問題。

Thanks for asking.

謝謝你的詢問。

It seems Ray is on.

看來雷已經上線了

Ray, why don't you take that one?

雷，你為什麼不拿那個？

Sure.

當然。

Thank you for the question.

謝謝你的提問。

The industry in the United States has -- there's considerable demand for institutional market participants seeking high-performance, low-cost trading experiences.

美國的產業對尋求高性能、低成本交易體驗的機構市場參與者有相當大的需求。

Right now, most of the trading venues in the United States are geared more towards retail.

目前，美國大多數的交易場所都更面向零售業。

And BakktX is an institutional focused trading venue that is geared towards that.

BakktX 是一個以機構為中心的交易場所，旨在實現這一目標。

So with that in mind, the market structure, which is more of an ECM and less of a central limit order book is particularly attractive to institutional investors and we're seeing a high demand in our presales efforts and our conversations with clients.

因此，考慮到這一點，市場結構（更多的是ECM 而不是中央限價訂單簿）對機構投資者特別有吸引力，我們看到對我們的售前工作和與客戶的對話有很高的需求。

Thank you for taking the question.

感謝您提出問題。

Appreciate it.

欣賞它。

We have no further questions in the queue today.

今天我們沒有其他問題了。

So I'll hand back over to the management team for closing remarks.

因此，我將交回給管理團隊進行總結發言。

Thank you everyone for attending our earnings call this morning.

感謝大家參加今天早上的財報電話會議。

We look forward to connecting with you again soon.

我們期待很快再次與您聯繫。

That concludes today's call.

今天的電話會議到此結束。

You may now disconnect your lines.

現在您可以斷開線路。