Bakkt Holdings Inc (BKKT) 2024 Q3 法說會逐字稿

greetings, and welcome to the Bakkt third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I will now turn the conference over to Cody Fletcher, Investor Relations Adviser at Bakkt. Please go ahead.

您好，歡迎參加 Bakkt 2024 年第三季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。我現在將會議交給 Bakkt 投資者關係顧問 Cody Fletcher。請繼續。

Good morning, and thank you for joining Bakkt's third quarter earnings call. Before we get started, I'd like to remind everyone that today's earnings call includes a separate supplemental presentation that can be found at our Investor Relations website at www.investors.bakkt.com.

早安，感謝您參加 Bakkt 第三季財報電話會議。在我們開始之前，我想提醒大家，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.investors.bakkt.com 上找到該演示文稿。

During today's call, we will make 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 its filings with the Securities and Exchange Commission.

在今天的電話會議中，我們將做出某些前瞻性聲明。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。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 also make reference to certain non-GAAP financial measures. 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.

此外，除了討論根據公認會計原則計算的結果外，我們還參考了某些非公認會計準則財務指標。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。

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

謝謝。我現在會把電話轉給安迪。

Thank you, Cody, and good afternoon, everyone. Thanks for joining Bakkts' third-quarter 2024 earnings call, and it's great to connect with you all again. With me today is Karen Alexander, our Chief Financial Officer.

謝謝你，科迪，大家下午好。感謝您參加 Bakkts 的 2024 年第三季財報電話會議，很高興再次與大家聯繫。今天與我在一起的是我們的財務長凱倫·亞歷山大 (Karen Alexander)。

Before I jump into our third-quarter results, I'd like to begin today by discussing Bakkt's strategic direction and acknowledging the favorable market conditions and increased trading volumes, we and the broader market have seen since the US presidential election on November 5.

在我開始討論第三季業績之前，我想先討論 Bakkt 的策略方向，並承認自 11 月 5 日美國總統大選以來我們和更廣泛的市場所看到的有利的市場條件和交易量的增加。

As you will see on page 3 of our presentation, an example of the prospects of our trading services correlated to the higher crypto prices, we saw a steady ramp-up in Bakkts' notional trading volume over the past three months. Then in November, leading up to the election and especially following the election, our notional trading volumes dramatically increased.

正如您將在我們簡報的第 3 頁上看到的，這是我們的交易服務前景與加密貨幣價格上漲相關的範例，我們看到 Bakkts 的名目交易量在過去三個月中穩步上升。然後在 11 月份，在選舉之前，尤其是選舉之後，我們的名義交易量急劇增加。

If you look at November's volumes by day, we saw this increase in reaction to the election results on November 5. And then trading volume went even higher days later, along with the broader crypto prices and a new all-time high for Bitcoin.

如果你每天查看 11 月的交易量，我們會看到對 11 月 5 日選舉結果的反應有所增加。

As of November 12, we've already traded $259 million in notional volume already exceeding October's total volume by 114 million. Compared to the broader market, we've achieved 169% of our total October volume in just the first 12 days of November, while the market as a whole has only reached 78% of this October total. Demonstrating our potential for strong performance.

截至 11 月 12 日，我們的名目交易量已達 2.59 億美元，已超過 10 月份的總交易量 1.14 億美元。與大盤相比，我們在 11 月的前 12 天就達到了 10 月份總成交量的 169%，而整個市場只達到了 10 月份總成交量的 78%。展現我們取得強勁業績的潛力。

While we cannot predict future trading volumes, especially in the current environment, we believe the US presidential election results have provided a meaningful tailwind to the crypto industry that not excluded. Turning now to page 4. Let's jump into the highlights of our Q3 financial performance which Karen will give more detail later on. Q3 crypto and loyalty services revenue, net of crypto costs and execution and clearing and brokerage fees, was $13.4 million down approximately 8.8% from Q3 last year.

雖然我們無法預測未來的交易量，尤其是在當前環境下，但我們相信美國總統大選結果為加密產業提供了有意義的推動力，這一點也不排除。現在翻到第 4 頁。第三季加密貨幣和忠誠度服務收入（扣除加密貨幣成本以及執行、清算和經紀費用）為 1,340 萬美元，比去年第三季下降約 8.8%。

This primarily happened as a result of the third and fourth quarter 2023, benefiting from a onetime adjustment to a revenue share agreement with Webull Pay that resulted in a temporary higher take rate, which became normalized at the start of this year. Note that this dynamic will also impact our Q4 2024 year-over-year comps.

這主要是由於 2023 年第三季和第四季的結果，受益於與 Webull Pay 的收入分成協議的一次性調整，導致採用率暫時較高，並在今年年初變得正常化。請注意，這種動態也將影響我們 2024 年第四季的年比比較。

Sequentially, our results were down 9.5% and reflected softer trading activities which were seen across the broader market. But as previously noted, we have seen and expect to continue to see trading volumes improvement in Q4. Q3 operating expenditures excluding crypto cost and execution and clearing and brokerage fees were $40.7 million and was 39.7% lower year-over-year driven by our cost reduction initiatives.

隨後，我們的業績下降了 9.5%，反映出整個市場的交易活動疲軟。但如前所述，我們已經看到並預計第四季度交易量將繼續改善。不包括加密成本以及執行、清算和經紀費用的第三季營運支出為 4,070 萬美元，在我們的成本削減措施的推動下，年減 39.7%。

These actions helped reduce our Q3 operating loss by 48.2% compared to Q3 last year.

這些行動幫助我們第三季的營運虧損比去年第三季減少了 48.2%。

In October, we completed another reduction in force as part of our continued cost improvement initiatives. Moving on to our crypto business operations. Most of 2024 has been a challenging execution environment. That said, with the clarity from the recent election results, we are encouraged that the work we have done positions us well in the new environment. We achieved several milestones during the third quarter that broadened our client network and product offerings for the tailwinds we are seeing in the market.

十月份，作為持續成本改進計劃的一部分，我們完成了另一次裁員。繼續我們的加密業務運作。 2024 年的大部分時間都是充滿挑戰的執行環境。儘管如此，從最近的選舉結果來看，我們所做的工作使我們在新環境中處於有利地位，這讓我們感到鼓舞。我們在第三季實現了幾個里程碑，擴大了我們的客戶網路和產品範圍，以滿足我們在市場上看到的順風車。

Now I'll introduce these accomplishments before diving deeper into our commercial operations. Starting with AdEx, our institutional electronic communication network.

現在，我將先介紹這些成就，然後再深入探討我們的商業營運。從我們的機構電子通訊網路 AdEx 開始。

This past quarter, we successfully commenced trading on the BakktX platform, with back crypto solutions, backed retail-facing crypto brokerage business is one of the initial institutional trading clients. This represents the beginning of a broader rollout strategy to institutional clients. This rollout aims to combine the strength of our strategic partners and the BakktX ecosystem, namely back security and compliance expertise, crossover markets, high-performance technology and sub-10 microsecond matching latency, Hidden Road's global credit network for institutions and real-time risk management and operational support and our new partner, CoinRoutes, who will provide our clients with the best-in-class trading interface and algorithms.

上個季度，我們成功在 BakktX 平台上開始交易，支援加密解決方案，支援面向零售的加密經紀業務，是最初的機構交易客戶之一。這代表著向機構客戶更廣泛推廣策略的開始。此次推出旨在結合我們戰略合作夥伴和BakktX 生態系統的優勢，即後台安全和合規專業知識、跨界市場、高性能技術和低於10 微秒的匹配延遲、Hidden Road 的全球機構信用網絡和即時風險管理和營運支援以及我們的新合作夥伴 CoinRoutes 將為我們的客戶提供一流的交易介面和演算法。

We remain confident BakktX will be a significant growth driver for the company, and we look forward to sharing updates in the near future. Further, we are excited to announce that we recently onboarded block wire onto our brokerage infrastructure solution. Blackwire is an AI-driven crypto fintech infrastructure platform. offering banking, custody and payment solutions for B2B and B2B2C customers. That will provide end-to-end crypto brokerage infrastructure for block wire spot crypto and stable coin payments platform, including liquidity and execution, custody services, fee management and potential future joint product expansions.

我們仍然相信 BakktX 將成為公司的重要成長動力，我們期待在不久的將來分享最新消息。此外，我們很高興地宣布，我們最近將區塊線納入我們的經紀基礎設施解決方案。 Blackwire 是一個由人工智慧驅動的加密金融科技基礎架構平台。為 B2B 和 B2B2C 客戶提供銀行、託管和支付解決方案。這將為區塊鏈現貨加密和穩定幣支付平台提供端到端的加密經紀基礎設施，包括流動性和執行、託管服務、費用管理和未來潛在的聯合產品擴展。

This new brokerage client is another demonstration of companies choosing Bakkt as their partner in growth using our preferred trusted platform for buying and selling crypto.

這個新的經紀客戶是該公司選擇 Bakkt 作為其成長合作夥伴並使用我們首選的可信任平台來買賣加密貨幣的另一個例子。

As we stated in our Q2 earnings, we recalibrated our go-to-market approach to focus our resources on targeting companies already established in the US and international players coming into the US who may benefit from back scalable trading capabilities. We are seeing very good results from this recalibration with an expanding sales opportunity pipeline for potential new clients with many such opportunities in advanced stages of the sales process. In August, we successfully introduced 9 new coins to our Bakkt crypto solutions platform.

正如我們在第二季度收益中所述，我們重新調整了進入市場的方法，將我們的資源集中在已經在美國成立的公司和進入美國的國際參與者上，這些公司可能會從可擴展的交易能力中受益。我們看到這次重新調整取得了非常好的成果，為潛在新客戶擴大了銷售機會管道，在銷售流程的高階階段有許多這樣的機會。 8 月，我們成功為 Bakkt 加密解決方案平台引入了 9 種新代幣。

The response from our clients has been very positive, and many have begun integrating the new coins into their platforms, and in Q3, the new coins contributed a notable improvement in our trading volumes for the quarter.

我們客戶的反應非常積極，許多人已經開始將新幣整合到他們的平台中，在第三季度，新幣為我們本季的交易量帶來了顯著改善。

We also just launched 6 additional coins in November and we plan on bringing more coins to market in the future. Furthermore, I'd like to give an update on our back trust and custody operations. In October 2024, we began investigating a possible wind-down in dissolution of Bakkt Trust due to its lack of market traction and high cost of capital due to regulatory requirements. As this process has progressed, we have also worked to find strategic alternatives for Bakkt Trust. This decision was carefully considered and represents the next stage of our strategic initiative to focus on our brokerage and institutional trading services, where we believe we have unique competitive advantages for sustainable long-term growth.

我們在 11 月也剛推出了 6 個額外的代幣，我們計劃在未來將更多的代幣推向市場。此外，我想介紹一下我們的反向信託和託管業務的最新情況。 2024 年 10 月，我們開始調查 Bakkt Trust 是否可能逐步解散，因為信託缺乏市場吸引力，且監管要求導致資本成本較高。隨著這一過程的進展，我們也努力為 Bakkt Trust 尋找策略替代方案。這項決定是經過深思熟慮的，代表了我們策略性舉措的下一階段，即專注於我們的經紀和機構交易服務，我們相信我們在可持續長期成長方面擁有獨特的競爭優勢。

Our decision is timely. When you look at the macro environment, the custody space in general has seen significant margin compression, particularly over the past several quarters, along with increased competition from new players and further regulatory rate reform. This move allows us to focus on our core strengths while also achieving an expected reduction in operating expenses. Additionally, we anticipate a lower regulatory capital requirement during this process, which would free up significant working capital and shows another example of our ultimate goal maximizing shareholder value. A key point to make with this decision is that our brokerage clients will continue to benefit as they do today from our custody offering enabled by our custody solutions partners.

我們的決定是及時的。從宏觀環境來看，託管空間整體利潤率顯著壓縮，尤其是在過去幾個季度，同時新參與者的競爭加劇以及監管利率改革的進一步推進。此舉使我們能夠專注於我們的核心優勢，同時實現營運費用的預期減少。此外，我們預計在此過程中監管資本要求較低，這將釋放大量營運資金，並展示我們實現股東價值最大化的最終目標的另一個例子。做出這項決定的一個關鍵點是，我們的經紀客戶將像今天一樣繼續從我們的託管解決方案合作夥伴提供的託管服務中受益。

So it's business as usual and there is no impact to our brokerage clients as we evaluate strategic alternatives to Bakkt Trust. Finally, as you know, that operates across several complementary yet distinct business areas. Both management and the Board are continually exploring strategic alternatives to maximize shareholder value while advancing our 2024 priorities, that Bakkt Trust being a prime example.

因此，一切照常進行，當我們評估 Bakkt Trust 的策略替代方案時，不會對我們的經紀客戶產生影響。最後，如您所知，它跨越幾個互補但又不同的業務領域。管理階層和董事會都在不斷探索策略替代方案，以最大限度地提高股東價值，同時推進我們 2024 年的優先事項，Bakkt Trust 就是一個典型的例子。

Turning to slide 5. Next, I'd like to review some key regulatory and macro developments that we believe are strong indications that crypto is maturing as an asset class and provide favorable tailwinds for that going forward.

轉向幻燈片 5。

On the regulatory front, we've seen meaningful progress this year. Notably, FASB's adoption of fair value accounting of crypto assets was a pivotal shift in reporting standards for public companies. As I mentioned on previous calls, the launch of Bitcoin and Ethereum spot ETFs has driven record adoption and capital flows in a very short amount of time. And more recently, the SEC's approval of options trading for BlackRock's IBIT ETF and on the NYSE has further reinforced crypto's growing presence in the US capital markets.

在監管方面，我們今年看到了有意義的進展。值得注意的是，FASB 對加密資產採用公允價值會計是上市公司報告標準的關鍵轉變。正如我在之前的電話會議中提到的，比特幣和以太坊現貨 ETF 的推出在很短的時間內推動了創紀錄的採用和資本流動。最近，美國證券交易委員會批准貝萊德 IBIT ETF 和紐約證券交易所的選擇權交易，進一步加強了加密貨幣在美國資本市場日益增長的影響力。

Meanwhile, we are now seeing that bipartisan support for crypto continues to improve. And with Donald Trump as the president elect, we expect the narrative in crypto to improve even further as he has advocated for a more positive regulatory environment.

同時，我們現在看到兩黨對加密貨幣的支持持續改善。隨著唐納德·川普當選總統，我們預計加密貨幣的敘述將進一步改善，因為他主張建立更積極的監管環境。

On the monetary front, the Federal Reserve's 50 basis point rate cut in September, following 11 consecutive hikes and the additional 25 basis point cut last Thursday signal a significant shift in monetary policy. These reductions in the US federal interest rates have historically served as positive catalysts for risk assets such as crypto. Taken together, these policy shifts create a highly favorable environment for Bakkt, reinforcing our confidence in the company's strategic direction. Turning to slide 6.

貨幣方面，聯準會在連續11次升息後於9月降息50個基點，並於上週四進一步降息25個基點，標誌著貨幣政策的重大轉變。從歷史上看，美國聯邦利率的下調一直是加密貨幣等風險資產的積極催化劑。總的來說，這些政策轉變為 Bakkt 創造了非常有利的環境，增強了我們對公司策略方向的信心。轉到投影片 6。

Our strategy of building a robust ecosystem of partners to address the institutional market has positioned us to capitalize on the growing opportunities that drive long-term growth. We have put together what we believe to be a unique combination of strengths to launch Bakkt, namely Bakkt advanced infrastructure with crossover markets high-performance technology, CoinRoute's rights trading interface and algorithms.

我們建立強大的合作夥伴生態系統來應對機構市場的策略使我們能夠利用不斷增長的機會來推動長期成長。我們整合了我們認為獨特的優勢組合來推出 Bakkt，即 Bakkt 先進的基礎設施與跨市場的高效能技術、CoinRoute 的權益交易介面和演算法。

And once we have a definitive agreement with them, HiddenRoad's global credit network for institutions. This combination delivers the unique value proposition for institutions giving them high-performance sub-10 microsecond matching latency, customizable liquidity streams and reduced trading costs. The strength of this ecosystem delivers solutions for institutions that are highly competitive against existing crypto trading venues.

一旦我們與他們達成最終協議，HiddenRoad 的全球機構信貸網路就會上線。這種組合為機構提供了獨特的價值主張，為他們提供低於 10 微秒的高性能匹配延遲、可自訂的流動性流並降低交易成本。此生態系統的優勢為機構提供了與現有加密貨幣交易場所相比具有高度競爭力的解決方案。

To wrap up, we are executing and making significant progress on the three strategic priorities that we laid out at the start of the year.

總而言之，我們正在執行年初制定的三個策略重點並取得重大進展。

First, we are growing our client network and deepening our existing client relationships. On the brokery side, we're thrilled to have Blackwire as a new client in our brokerage infrastructure solution. Additionally, we continue to build momentum with HiddenRoad, crossover markets and our new partner CoinRoutes which demonstrates our commitment to growing our institutional client base while deepening relationships with existing partners. We believe these collaborations enhance our offerings and position Bakkt as a critical player in the broader digital asset ecosystem.

首先，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。在經紀方面，我們很高興 Blackwire 成為我們經紀基礎設施解決方案的新客戶。此外，我們繼續與 HiddenRoad、跨界市場和我們的新合作夥伴 CoinRoutes 建立勢頭，這表明我們致力於擴大我們的機構客戶群，同時加深與現有合作夥伴的關係。我們相信這些合作增強了我們的產品，並使 Bakkt 成為更廣泛的數位資產生態系統中的關鍵參與者。

Secondly, we are expanding our product solutions and extending the back ecosystem. With the upcoming rollout of BakktX, we are finalizing our high-performance platform to cater to the needs of institutional investors. This is demonstrated through our partnership with Blackwire using our end-to-end infrastructure for their crypto payment processing and brokerage services. These milestones reflect our ongoing commitment to innovation and creating best-in-class solutions that meet market demands.

其次，我們正在擴展我們的產品解決方案並擴展後台生態系統。隨著 BakktX 即將推出，我們正在最終確定我們的高性能平台，以滿足機構投資者的需求。我們與 Blackwire 的合作證明了這一點，使用我們的端到端基礎設施來提供加密支付處理和經紀服務。這些里程碑反映了我們對創新和創造滿足市場需求的一流解決方案的持續承諾。

Lastly, we continue to improve our cost structure, ensuring that we operate efficiently how scaling our business. The integration of new strategic partnerships and our disciplined approach to cost management already yielding improved results without compromising the high level of service and innovation we deliver for our clients. Thank you for your time. It's been a pleasure to update you on back from both a high-level financial and operational perspective.

最後，我們繼續改善成本結構，確保我們有效率地運作並擴展業務。新的策略合作夥伴關係和我們嚴格的成本管理方法的整合已經取得了更好的成果，同時又不影響我們為客戶提供的高水準服務和創新。感謝您抽出時間。很高興從高層財務和營運角度向您通報最新情況。

I will now hand it over to our CFO, Karen, who will review our financial performance for the third quarter in more detail. Karen?

我現在將把它交給我們的財務長凱倫，她將更詳細地審查我們第三季的財務表現。凱倫？

Thank you, Andy. I will now walk you through our third quarter KPIs and financial results. As a reminder, in accordance with GAAP, we present crypto services revenue, encryptocost 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 reduction services that we provide our loyalty customers.

謝謝你，安迪。現在我將向您介紹我們第三季的 KPI 和財務表現。提醒一下，根據公認會計準則，我們按總額列報加密服務收入、加密成本以及執行、清算和經紀費用。因為我們是為客戶提供加密服務的主體。相較之下，我們是為忠誠客戶提供的忠誠度降低服務的代理。

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

因此，忠誠度收入以單行淨值形式呈現。

Starting on slide 9, we have our Q3 KPIs, which provide a snapshot of the underlying trends driving our business. We ended the third quarter with 6.5 million crypto-enabled accounts. reflecting a steady increase over the past 12 months. This growth further underscores the increasing adoption and trust in our platform. Next, we have our transaction accounts broken down into crypto and loyalty accounts.

從幻燈片 9 開始，我們有第三季的 KPI，它提供了推動我們業務的基本趨勢的快照。截至第三季末，我們擁有 650 萬個啟用加密貨幣的帳戶。反映了過去 12 個月的穩定成長。這種成長進一步凸顯了我們平台的採用率和信任度不斷提高。接下來，我們將交易帳戶分為加密帳戶和忠誠帳戶。

There were 610,568 transacting accounts in the third quarter, of which 417,000 were related to loyalty redemptions and 193,000 were related to crypto trading. Total national traded volume was $476.5 million with $314.9 million attributed to crypto and $161.6 million attributed to loyalty redemptions.

第三季有 610,568 個交易帳戶，其中 417,000 個與忠誠度兌換相關，193,000 個與加密貨幣交易相關。全國總交易額為 4.765 億美元，其中 3.149 億美元歸因於加密貨幣，1.616 億美元歸因於忠誠度兌換。

Crypto notional traded volume was down 36.2% sequentially, but up 64.9% year-over-year. As Andy mentioned at the beginning of the call, we saw a 56.3% increase in notional volume month over month from September to October this year, surpassing the market average by 40.8%, and have already achieved 169% of our October volume in the first 12 days of November. We hope to see this trend continue as market sentiment for Crypto becomes more positive. As Andy also highlighted earlier, during the quarter, we enabled 9 new tokens for trading at our brokerage platform for our clients. These new tokens demonstrated strong trading activity immediately and contributed approximately 10% to our September overall trading volume.

加密貨幣名目交易量較上季下降 36.2%，但年增 64.9%。正如Andy在電話會議開始時提到的，今年9月至10月，我們的名義交易量環比增長了56.3%，超出市場平均水平40.8%，並且第一時間就已經達到了10月交易量的169 %。隨著加密貨幣的市場情緒變得更加積極，我們希望看到這種趨勢持續下去。正如安迪早些時候也強調的那樣，在本季度，我們為客戶在我們的經紀平台上啟用了 9 種新代幣交易。這些新代幣立即表現出強勁的交易活動，占我們 9 月整體交易量的約 10%。

We also added an additional 6 coins in November, and believe our expanded listings that our clients' customers can trade increases and user engagement, improved liquidity and attracts more customers on to our clients' platforms. And lastly, assets under custody at our custodian partners for our brokerage business were $938.7 million, down from the previous quarter of $974.5 million driven by slightly lower coin prices. On slide 10, we show our total revenue broken out between our crypto and loyalty products. Total revenue for the third quarter of 2024 was $328.4 million. Gross crypto services revenue for the quarter was $316.3 million, an increase of 65% from the same quarter last year.

我們還在 11 月額外增加了 6 個代幣，相信我們擴大的清單可以讓我們客戶的客戶進行交易，增加用戶參與度，提高流動性，並吸引更多客戶進入我們客戶的平台。最後，由於代幣價格略有下降，我們的經紀業務託管合作夥伴託管的資產為 9.387 億美元，低於上一季的 9.745 億美元。在投影片 10 上，我們展示了我們的加密產品和忠誠度產品的總收入。 2024 年第三季的總營收為 3.284 億美元。該季度加密服務總收入為 3.163 億美元，比去年同期成長 65%。

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

隨著整體加密貨幣興趣自去年以來有所增加，這種成長趨勢與整體市場一致。

Our crypto services revenue, net of crypto cost and execution clearing and brokers fees totaled $1.3 million reflecting a 2.9% decrease compared to the same period last year. As Andy mentioned earlier, this decline was primarily due to the second half of 2023 and benefiting from a temporary onetime adjustment in our revenue share agreement with Label that resulted in a higher-than-normal take rate, which reverted back to normal rates at the beginning of 2024. Our net loyalty revenues were $12.1 million, down 7.2% year-over-year. Of this $12.1 million loyalty transaction revenues were $6.0 million and subscription and services revenues were $6.1 million.

在扣除加密成本、執行清算和經紀費用後，我們的加密服務收入總計 130 萬美元，比去年同期下降 2.9%。正如安迪之前提到的，這種下降主要是由於2023 年下半年，並受益於我們與Label 的收入分成協議的臨時調整，導致了高於正常的接受率，並在2023 年恢復到正常水平。在這 1,210 萬美元中，忠誠度交易收入為 600 萬美元，訂閱和服務收入為 610 萬美元。

The majority of the decline in net royalty revenue was driven by a decline in transaction revenue. Moving on to slide 11. We have our total operating expenses. Total expenses for the quarter were $355.8 million, including $315.0 million of crypto cost in execution, clearing and brokerage fees, driven by higher trading volumes. SG&A expenses were $8.5 million, up 14% from Q3 2023 and 54.6% sequentially, and due to a $1.1 million settlement payment made in July of 2024 to terminate a 5-year strategic marketing agreement entered into in 2023.

淨特許權使用費收入下降的主要原因是交易收入下降。繼續看投影片 11。該季度的總支出為 3.558 億美元，其中包括由交易量增加推動的 3.15 億美元的執行、清算和經紀費用的加密成本。 SG&A 費用為850 萬美元，比2023 年第三季增加14%，比上一季成長54.6%，這是由於2024 年7 月支付了110 萬美元和解金，以終止2023 年簽訂的5 年期策略行銷協議。

The settlement payment release us from future obligations under the agreement.

和解付款使我們免除了協議項下的未來義務。

Total compensation expense was $21.1 million, down 14.3% from last year due to lower headcount and incentive bonuses. We continue to prioritize cost savings initiatives and have made significant strides in optimizing our expense structure. On slide 12, we have our EBITDA and adjusted EBITDA for the third quarter of 2024. Adjusted EBITDA reflects adjustments for noncash restructuring and acquisition-related items that impacted the period. EBITDA and adjusted EBITDA for Q3 2024 were losses of $7.3 million and $23.7 million, respectively.

由於員工人數和激勵獎金減少，薪資總支出為 2,110 萬美元，比去年下降 14.3%。我們繼續優先考慮成本節約計劃，並在優化費用結構方面取得了重大進展。在投影片 12 上，我們列出了 2024 年第三季的 EBITDA 和調整後 EBITDA。 2024 年第三季的 EBITDA 和調整後 EBITDA 分別為虧損 730 萬美元和 2,370 萬美元。

Adjusted EBITDA loss for Q3 2021 increased by $2.1 million or 9.8% compared to Q3 last year, primarily as a result of the temporary higher take rate from Webull in the second half of 2023, and and lower loyalty revenue.

與去年第三季相比，2021 年第三季調整後EBITDA 損失增加了210 萬美元，即9.8%，主要是由於2023 年下半年微牛的拿取率暫時較高，以及忠誠度收入較低。

Turning to slide 13. We present our condensed profit and loss statement. Net loss for the quarter was $6.3 billion, of which $3.4 million was attributable to the noncontrolling interest in the operating company and $2.9 million was attributable to back holdings resulting in a diluted loss of $0.45 per share on an average diluted share base of 6.4 million shares for both basic and diluted. On slide 14, we have our condensed balance sheet as of September 30, 2024. We ended the quarter with $35.7 million in cash, cash equivalents and available for sale securities in restricted cash.

轉向投影片 13。該季度的淨虧損為 63 億美元，其中 340 萬美元歸因於營運公司的非控股權益，290 萬美元歸因於回購股份，導致平均攤薄股本為 640 萬股，每股攤薄虧損為 0.45 美元適用於鹼性和稀釋。在投影片 14 中，我們列出了截至 2024 年 9 月 30 日的簡明資產負債表。

We utilized $25.0 million of available cash in the third quarter of 2024.

2024 年第三季度，我們使用了 2,500 萬美元的可用現金。

The third quarter included several annual and onetime payments including $3.8 million for annual insurance premiums and a $1.1 million settlement payment associated with the termination of a strategic marketing agreement that I referred to earlier. Additionally, $1 million was used to increase restricted cash, driven by reserves needed to support higher trading Bakkt volumes. Moving on to slide 15. We have an adjustment to our full year 2024 outlook from the previous quarter. We are seeing a lower forecasted loyalty revenue range of $49 million to $50 million, missing the lower end of our range by $4 million on the higher end of our range by $7 million.

第三季包括幾項年度和一次性付款，包括 380 萬美元的年度保險費和與我之前提到的策略行銷協議終止相關的 110 萬美元和解付款。此外，由於支持更高的 Bakkt 交易量所需的儲備，還使用了 100 萬美元來增加限制性現金。繼續看投影片 15。我們看到忠誠度收入的預測範圍較低，為 4900 萬美元至 5000 萬美元，比我們的範圍低端低了 400 萬美元，比我們的範圍高端低了 700 萬美元。

We've seen a downward trend in the loyalty business this year, which is primarily driven by lower transaction volume.

我們看到今年忠誠度業務呈下降趨勢，這主要是由於交易量下降所致。

Also, we now expect the crypto revenue contribution to be at the low end of the range of $10 million to $15 million we provided last quarter. This guidance does not include an expectation of material revenue from Bakkt debt in 2024. Our cash utilization for the remainder of the year will be higher than previously guided due to the reduction of expected revenue and higher expenses. We expect to end the year with $34 million to $39 million of available cash, cash equivalents and available for sale securities. After consideration of the possible wind-down and dissolution of back press and the lower regulatory capital requirements we expect.

此外，我們現在預計加密貨幣收入貢獻將處於我們上個季度提供的 1000 萬美元至 1500 萬美元範圍內的低端。該指導不包括 2024 年 Bakkt 債務的實質收入預期。我們預計到年底將擁有 3,400 萬至 3,900 萬美元的可用現金、現金等價物和可供出售證券。考慮到可能的縮減和解散 back press 以及我們預期的較低監管資本要求。

Our end of year expectation for available cash, cash equivalents and available for sale securities considers our lower revenue expectations for 2024 as well as higher professional services expenses.

我們對可用現金、現金等價物和可供出售證券的年終預期考慮到了我們對 2024 年較低的收入預期以及較高的專業服務費用。

Thank you, everyone. That now concludes the prepared section of our Q3 2024 earnings call. I'll now pass it back to Cody for the Q&A session.

謝謝大家。我們 2024 年第三季財報電話會議的準備部分到此結束。我現在將其傳回科迪以進行問答環節。

Thank you, Karen. Next, we will move over to a couple of questions from the investor community. Our first question from the investor community comes from Syad H. What is that doing to bring its products to the market. There seems to be no enthusiasm from the company itself and nothing as far as announcements.

謝謝你，凱倫。接下來，我們將轉向投資人群體提出的幾個問題。投資者界向我們提出的第一個問題來自 Syad H。公司本身似乎沒有熱情，也沒有任何公告。

So how can others be excited about you and your products. Andy, can you share your perspective here?

那麼其他人如何對您和您的產品感到興奮呢？安迪，你能在這裡分享你的觀點嗎？

Thank you, Syad, for your question and for being a valued stockholder. I appreciate the opportunity to address this. But Bakkt, our priority this year has been clear delivering innovative, high-quality products that meet market demand. Specifically, we've concentrated on BakktX, positioning ourselves to capitalize on the growing institutional interest in crypto trading. We've been working diligently to refine our current offerings, such as the recently announced coin listings as well as introducing BakktX as an entirely new offering.

Syad，謝謝您提出問題並感謝您成為尊貴的股東。我很高興有機會解決這個問題。但 Bakkt，我們今年的首要任務很明確，那就是提供滿足市場需求的創新、高品質產品。具體來說，我們專注於 BakktX，將自己定位為利用機構對加密貨幣交易日益增長的興趣。我們一直在努力完善我們目前的產品，例如最近宣布的代幣上市以及推出 BakktX 作為全新產品。

While much of this work happens behind the scenes, it's all geared towards creating long-term value for our shareholders and establishing Bakkt as a leader in the evolving crypto ecosystem.

雖然大部分的工作都是在幕後進行的，但它們都是為了為我們的股東創造長期價值，並將 Bakkt 打造成不斷發展的加密生態系統領導者。

We understand the desire for more frequent updates, but we are committed to only announcing developments when they are finalized. Rest assured, we are fully focused on building momentum and driving profitability and we appreciate your continued confidence in our efforts.

我們理解對更頻繁更新的渴望，但我們承諾僅在最終確定後才宣布進展。請放心，我們完全專注於增強動力和提高獲利能力，感謝您對我們努力的持續信任。

Thank you, Andy. Our next question comes from Jeffrey S. What is the long-term vision for the company? What unique value you can back to offer its customers the competitors can't match. Andy, could you also take this one?

謝謝你，安迪。我們的下一個問題來自 Jeffrey S。您可以為客戶提供競爭對手無法比擬的獨特價值。安迪，你也可以拿走這個嗎？

Thank you, Cody, and thank you, Jeffrey, for the question. At that, our long-term vision is clear. to establish ourselves as a leader in the rapidly evolving crypto ecosystem. We're laser focused on areas where we can deliver the most value. Specifically through our best-in-class retail crypto trading platform and BakktX, our groundbreaking solution tailored for the institutional trickle trading market.

謝謝科迪，也謝謝傑弗裡提出的問題。至此，我們的長期願景是明確的。使我們成為快速發展的加密生態系統中的領導者。我們專注於能夠提供最大價值的領域。特別是透過我們一流的零售加密貨幣交易平台和 BakktX，我們為機構涓流交易市場量身定制的突破性解決方案。

We believe the future of crypto and tokenization is bright, and our goal is to provide a seamless, secure entry point and crypto trading platform for brokerages and institutions venturing into the space. Our collaboration with industry leaders like HiddenRoads, Crossover markets, CoinRoutes and Blackwire demonstrate a shared commitment to driving innovation and long-term value in this dynamic market. Hot sets back apart is our unmatched security and compliance expertise, our strong network of partnerships across the industry and our commitment to operational efficiency as we've discussed today. These pillars reinforce our mission to deliver sustained value to our shareholders in this burgeoning market.

我們相信加密貨幣和代幣化的未來是光明的，我們的目標是為涉足該領域的經紀商和機構提供無縫、安全的切入點和加密貨幣交易平台。我們與 HiddenRoads、Crossover market、CoinRoutes 和 Blackwire 等行業領導者的合作表明了我們在這個充滿活力的市場中推動創新和長期價值的共同承諾。正如我們今天所討論的，我們無與倫比的安全和合規專業知識、強大的跨行業合作夥伴網絡以及我們對營運效率的承諾是最引人注目的。這些支柱強化了我們在這個新興市場中為股東提供持續價值的使命。

And thank you, everyone, for attending our earnings call this morning. We look forward to connecting with you again soon.

感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。

Ladies and gentlemen, this concludes our event, and 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了。