Revenue of $22.3 million, up 80% year-over-year in Q2
OMAHA, Neb., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Exodus Movement, Inc. (OTCQX: EXOD), (the “Company” or “Exodus”) the leading self-custodial cryptocurrency software platform, today announced its results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights (Unaudited)
| In USD millions, except percentages | Q2 2024 | Q2 2023 | % Change |
| Revenue | $22.3 | $12.4 | 80% |
| Cost of Revenues | 10.8 | 7.1 | 51% |
| Total Operating Expenses1 | 26.3 | 3.8 | 589% |
| General and administrative | 9.1 | 4.0 | 126% |
| Loss (gain) on digital assets, net1 | 17.2 | (0.2) | (8,673%) |
| (Loss) income from Operations | (14.7) | 1.5 | (1,113%) |
| Operating Margin | (66%) | 12% | |
| Net (Loss) Income | $(9.6) | $1.9 | (614%) |
| Adjusted EBITDA2 | $5.8 | $4.1 | 43% |
“Our strong Q2 performance reflects our leadership in product innovation and the overall growth of the digital asset market,” said JP Richardson, CEO and co-founder of Exodus.
“We help everyday consumers control their own finances by removing the barriers and complexities of owning digital assets so they can easily navigate the broad range of web3 exchanges and digital assets in the market. With nearly a decade of experience, we’ve built a trusted brand that is being recognized not only by consumers but also other platforms. We are excited to see the early traction of our B2B strategy and are encouraged by our recent launch of our Passkeys product for developers.”
“In Q2, we delivered both high year-over-year revenue growth and operational excellence, which demonstrate the strength of our business model as well as the overall momentum of the digital asset market,” said James Gernetzke, CFO of Exodus. “While it’s expected that this market can fluctuate in the short term, we’ve built a resilient business model that is designed to sustain bear markets and thrive in bull markets. Given our long runway for growth, we intend to continue to make strategic investments in our platform, while delivering operational excellence. We believe the early traction of our B2B strategy will enable us to expand our footprint through our brand reputation and history of delivering a best-in-class digital wallet.”
Second Quarter Operational and Other Financial Highlights
Revenue by category
| Revenue ($ millions) | Q2 2024 | % of 2024 Operating Revenue | Q2 2023 | % of 2023 Operating Revenue | |||||
| Exchange aggregation | $19.9 | 89.4 | % | $11.6 | 93.7 | % | |||
| Fiat on/off-boarding | 1.0 | 4.3 | % | 0.6 | 4.5 | % | |||
| Staking | 0.5 | 2.3 | % | 0.2 | 1.6 | % | |||
| Consulting | 0.5 | 2.2 | % | - | - | ||||
| Other | 0.4 | 1.8 | % | <0.1 | 0.2 | % | |||
| Operating Revenues | $22.3 | 100.0 | % | $12.4 | 100.0 | % | |||
- Exchange provider processed volume was $1.05 billion in Q2 2024, up 78% from $0.59 billion in Q2 2023. Bitcoin, Tether (TRX Network), Tether (ETH Network), and Ethereum were the top assets traded in Q2 2024, at 25%, 15%, 12%, and 12% of volume, respectively.
- Monthly Active Users3 were 1.5 million in Q2 2024, compared to 1.2 million in Q2 2023.
- Digital assets and cash4 were $195.5 million, including $121.3 million in bitcoin and ethereum and $70.7 million in cash and cash equivalents, USDC, and treasury bills as of June 30, 2024.
Q2 2024 Webcast
Exodus will host a webcast of its second quarter 2024 fiscal results beginning at 5:00PM (Eastern Time) on August 12, 2024. To access the webcast, please use this link. It will also be carried on the Company’s website www.exodus.com.
Contact Exodus Customer Support
support@exodus.com
Contact Exodus Investor Relations
investors@exodus.com
About Exodus
Exodus is on a mission to help the world exit the traditional finance system. Founded in 2015, Exodus is a multi-asset software wallet that keeps design a priority to make cryptocurrency and digital assets easy for everyone. Available for desktop, mobile, and browser, Exodus allows users to secure and manage their digital assets through self-custodial functionality that is encrypted locally on users' own devices, ensuring privacy, security, and complete control over their wealth. Additionally, users can easily access third-party providers of services that allow for an industry-leading 20,000+ pairs of digital asset swaps along with the ability to buy digital assets. For more information, visit www.exodus.com.
Disclosure Information
Exodus uses the following as means of disclosing material nonpublic information and for complying with disclosure obligations under Regulation FD: websites exodus.com/investors and exodus.com/blog; press releases; public videos, calls and webcasts; and social media: Twitter (@exodus_io and JP Richardson's feed @jprichardson), Facebook, LinkedIn, and YouTube.
| Exodus Movement, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value value) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 27,769 | $ | 11,376 | ||||
| U.S. dollar coin ($175 and $500 restricted as of June 30, 2024 and December 31, 2023, respectively) | 507 | 517 | ||||||
| Treasury bills | 42,420 | 43,151 | ||||||
| Accounts receivable | 3,004 | 3,240 | ||||||
| Prepaid expenses | 2,108 | 1,440 | ||||||
| Other current assets | 345 | 5 | ||||||
| Total current assets | 76,153 | 59,729 | ||||||
| OTHER ASSETS | ||||||||
| Fixed assets, net | 402 | 317 | ||||||
| Digital assets | 124,798 | 35,010 | ||||||
| Software assets, net | 8,035 | 8,051 | ||||||
| Other long-term asset | 40 | - | ||||||
| Indefinite-lived assets | 2,096 | 1,945 | ||||||
| Other investments | 100 | 100 | ||||||
| Deferred tax assets | - | 6,567 | ||||||
| Total other assets | 135,471 | 51,990 | ||||||
| TOTAL ASSETS | $ | 211,624 | $ | 111,719 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 2,195 | $ | 1,061 | ||||
| Other current liabilities | 6,951 | 6,485 | ||||||
| Total current liabilities | 9,146 | 7,546 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Other long-term liabilities | 435 | 412 | ||||||
| Deferred tax liability | 11,237 | - | ||||||
| Total long-term liabilities | 11,672 | 412 | ||||||
| Total liabilities | 20,818 | 7,958 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Preferred stock | ||||||||
| $0.000001 par value, 5,000,000 shares authorized, no shares issued and outstanding | - | - | ||||||
| Class A Common Stock | ||||||||
| $0.000001 par value, 300,000,000 shares authorized, | - | - | ||||||
| 5,044,368 issued and outstanding as of June 30, 2024 | - | - | ||||||
| 4,320,005 issued and outstanding as of December 31, 2023 | - | - | ||||||
| Class B Common Stock | ||||||||
| $0.000001 par value, 27,500,000 shares authorized, | - | - | ||||||
| 21,520,469 issued and outstanding as of June 30, 2024 | - | - | ||||||
| 21,760,855 issued and outstanding as of December 31, 2023 | - | - | ||||||
| ADDITIONAL PAID IN CAPITAL | 125,500 | 122,558 | ||||||
| ACCUMULATED OTHER COMPREHENSIVE LOSS | (809 | ) | (1,477 | ) | ||||
| RETAINED EARNINGS (ACCUMULATED DEFICIT) | 66,115 | (17,320 | ) | |||||
| Total stockholders' equity | 190,806 | 103,761 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 211,624 | $ | 111,719 | ||||
| Exodus Movement, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||
| OPERATING REVENUES | $ | 22,308 | $ | 12,405 | $ | 51,368 | $ | 25,750 | ||||||||
| COST OF REVENUES | 10,767 | 7,135 | 21,471 | 13,992 | ||||||||||||
| GROSS PROFIT | 11,541 | 5,270 | 29,897 | 11,758 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and administrative | 9,054 | 4,015 | 17,109 | 9,987 | ||||||||||||
| Loss (gain) on digital assets, net | 17,232 | (201 | ) | (39,567 | ) | (642 | ) | |||||||||
| Total operating expense (income) | 26,286 | 3,814 | (22,458 | ) | 9,345 | |||||||||||
| (Loss) income from operations | (14,745 | ) | 1,456 | 52,355 | 2,413 | |||||||||||
| OTHER INCOME | ||||||||||||||||
| Staking and other income | 405 | 17 | 555 | 33 | ||||||||||||
| Unrealized gain (loss) on investments | 158 | 85 | (86 | ) | 189 | |||||||||||
| Interest income | 695 | 468 | 1,642 | 871 | ||||||||||||
| Total other income | 1,258 | 570 | 2,111 | 1,093 | ||||||||||||
| (Loss) income before income taxes | (13,487 | ) | 2,026 | 54,466 | 3,506 | |||||||||||
| INCOME TAX BENEFIT (EXPENSE) | 3,881 | (157 | ) | (9,285 | ) | (864 | ) | |||||||||
| NET (LOSS) INCOME | $ | (9,606 | ) | $ | 1,869 | $ | 45,181 | $ | 2,642 | |||||||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||
| Foreign currency translation adjustment | (35 | ) | (200 | ) | 668 | (250 | ) | |||||||||
| COMPREHENSIVE (LOSS) INCOME | $ | (9,641 | ) | $ | 1,669 | $ | 45,849 | $ | 2,392 | |||||||
| Net (loss) income per share | ||||||||||||||||
| Basic net (loss) income per share of common stock - Class A | $ | (0.37 | ) | $ | 0.07 | $ | 1.72 | $ | 0.10 | |||||||
| Basic net (loss) income per share of common stock - Class B | $ | (0.37 | ) | $ | 0.07 | $ | 1.72 | $ | 0.10 | |||||||
| Diluted net (loss) income per share of common stock - Class A | $ | (0.37 | ) | $ | 0.06 | $ | 1.42 | $ | 0.08 | |||||||
| Diluted net (loss) income per share of common stock - Class B | $ | (0.37 | ) | $ | 0.06 | $ | 1.42 | $ | 0.08 | |||||||
| Weighted average number of shares and share equivalents outstanding | ||||||||||||||||
| Weighted average number of shares used in basic computation - Class A | 4,486 | 3,804 | 4,774 | 3,702 | ||||||||||||
| Weighted average number of shares used in basic computation - Class B | 21,520 | 21,799 | 21,570 | 21,799 | ||||||||||||
| Weighted average number of shares used in diluted computation - Class A | 4,486 | 7,300 | 8,185 | 7,207 | ||||||||||||
| Weighted average number of shares used in diluted computation - Class B | 21,520 | 23,978 | 23,727 | 23,983 | ||||||||||||
| Exodus Movement, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income | $ | 45,181 | $ | 2,642 | |||
| Net cash provided by operating activities | |||||||
| Depreciation and amortization | 2,511 | 2,181 | |||||
| Deferred tax expense | 7,382 | - | |||||
| Impairment of digital assets | - | 1,996 | |||||
| Gain on digital assets, net | (39,567 | ) | (2,638 | ) | |||
| Staking and other income | (555 | ) | - | ||||
| Unrealized loss (gain) on investments | 86 | (189 | ) | ||||
| Stock based compensation | 3,741 | 3,505 | |||||
| Accrued interest income | (1,133 | ) | (541 | ) | |||
| Other operating activities settled in digital assets and USDC | (18,402 | ) | (7,135 | ) | |||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable | (4 | ) | - | ||||
| Prepaid expenses | (618 | ) | 1,545 | ||||
| Other current assets | (340 | ) | 16 | ||||
| Other long-term asset | (40 | ) | - | ||||
| Accounts payable | 1,144 | 421 | |||||
| Other current liabilities | (1,325 | ) | 236 | ||||
| Other long-term liabilities | 23 | - | |||||
| Net cash (used in) provided by operating activities | (1,916 | ) | 2,039 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of domain name | (151 | ) | - | ||||
| Purchases of fixed assets | (188 | ) | (10 | ) | |||
| Purchase of treasury bills | (44,386 | ) | (38,617 | ) | |||
| Redemption of treasury bills | 46,164 | 32,300 | |||||
| Purchases of digital assets | (2,534 | ) | - | ||||
| Disposal of digital assets held | 20,631 | - | |||||
| Net cash provided by (used in) investing activities | 19,536 | (6,327 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Repurchase of shares to pay employee withholding taxes | (1,227 | ) | (324 | ) | |||
| Exercise of stock options | - | 1 | |||||
| Net cash used in financing activities | (1,227 | ) | (323 | ) | |||
| Change in cash and cash equivalents | 16,393 | (4,611 | ) | ||||
| Cash and cash equivalents | |||||||
| Beginning of period | 11,376 | 20,494 | |||||
| End of period | 27,769 | 15,883 | |||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
| Non-cash issuance of stock | $ | 10 | $ | - | |||
| Non-cash capitalized software costs settled in digital assets | |||||||
| (including stock based compensation of $418 and $557 respectively) | $ | (2,364 | ) | $ | (2,826 | ) | |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
| Cash paid for income taxes | $ | (3,252 | ) | $ | (619 | ) | |
Non-GAAP Financial Measures
Earnings before interest, taxes and depreciation and amortization (EBITDA) and Adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA).
In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), we believe Adjusted EBITDA, a non-GAAP measure, is useful in evaluating our operating performance. We use Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance. However, Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures, including Adjusted EBITDA, differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
A reconciliation of net income, the most closely comparable GAAP measure, to Adjusted EBITDA to net income can be found below in the table captioned “Reconciliation of Net Income to Adjusted EBITDA.” Investors are encouraged to review the related GAAP financial measures and the reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure, and not to rely on any single financial measure to evaluate our business. We calculate Adjusted EBITDA as net income, adjusted to exclude provision for or benefit from income taxes, depreciation and amortization, interest expense, stock-based compensation expense, gains and losses on digital assets, unrealized gain or loss on investments, fair value gain or loss on derivatives, non-recurring legal reserves and related costs, and other loss.
The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of Adjusted EBITDA are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by industry analysts. Net income attributable to Exodus stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:
| Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||
| Net (loss) income | $ | (9,606 | ) | $ | 1,869 | $ | 45,181 | $ | 2,642 | |||||||
| Interest income (including staking and other income) | (1,100 | ) | (485 | ) | (2,197 | ) | (904 | ) | ||||||||
| Income tax (benefit) expense | (3,881 | ) | 157 | 9,285 | 864 | |||||||||||
| Depreciation and amortization | 1,268 | 1,194 | 2,511 | 2,181 | ||||||||||||
| EBITDA | (13,319 | ) | 2,735 | 54,780 | 4,783 | |||||||||||
| Loss (gain) on digital assets, net | 17,232 | (201 | ) | (39,567 | ) | (642 | ) | |||||||||
| Unrealized (gain) loss on investments | (158 | ) | (85 | ) | 86 | (189 | ) | |||||||||
| Stock-based compensation | 2,067 | 1,623 | 3,741 | 3,505 | ||||||||||||
| Adjusted EBITDA | $ | 5,822 | $ | 4,072 | $ | 19,040 | $ | 7,457 | ||||||||
Forward-Looking Statements
This press release contains “forward-looking statements” as that term is defined by the federal securities laws. All forward-looking statements are based upon our current expectations and various assumptions and apply only as of the date made. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs and projections will be achieved. Forward-looking statements are generally identified by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “forecast,” as well as variations of such words or similar expressions. Forward-looking statements in this document include, but are not limited to, quotations from management regarding confidence in our products, services, business trajectory and plans, and certain business metrics.
Forward-looking statements include statements concerning:
- our business plans and strategy;
- projected profitability, performance or cash flows;
- future capital expenditures;
- our growth strategy, including our ability to grow organically and through mergers and acquisitions (“M&A”);
- anticipated financing needs;
- business trends;
- our capital allocation strategy;
- liquidity and capital management; and
- other information that is not historical information.
There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those expressed or implied by our forward-looking statements, including those set forth in “Item 1. Business” and “Item 1A. Risk Factors” in the Form 10, as well as in our other reports filed with the SEC from time to time. All forward-looking statements are expressly qualified in their entirety by such cautionary statements. Readers are cautioned not to place undue reliance on such forward-looking statements. Except as required by law, we undertake no obligation to update or revise any forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.
______________________
1 Includes digital assets marked to market under new GAAP guidelines, specifically ASU 2023-08. During the three months ended June 30, 2024, the Company’s net loss was primarily due to the recognition of a net loss from the remeasurement of digital assets, which is included in net loss and presented separately from changes in the carrying amount of other intangible assets.
2 Non-GAAP measure. For a reconciliation of Net Income, the most commonly comparable GAAP measure, to Adjusted EBITDA, please refer to the reconciliation table at the end of this press release.
3 As of June 30, 2024. The “Monthly Active Users” metric tracks the number of users who have had an app session during the month, as defined in Amendment No. 2 to our Registration Statement on Form 10, filed with the Securities and Exchange Commission (the “SEC’) on July 10, 2024 (the “Form 10”).
4 Digital assets at Market Value as of June 30, 2024.
