GuruFocus -
- Revenue: $20.1 million, up 68% year-over-year, down 10% from the prior quarter.
- Net Income: $0.8 million for Q3 2024.
- Operating Loss: Approximately $52,000 in Q3 2024, compared to $713,000 in Q3 2023 and $14.7 million in Q2 2024.
- Exchange Aggregation Revenue: 90.1% of total revenue in Q3 2024.
- Non-Exchange Aggregation Revenue: 9.9% of total revenue in Q3 2024.
- Exchange Provider Process Volumes: $962 million, up 69% year-over-year, down 9% from Q2 2024.
- Monthly Active Users: 1.6 million in Q3 2024, up from 1.1 million a year ago and 1.5 million in Q2 2024.
- Net Loss on Digital Assets: Approximately $370,000 in Q3 2024, compared to $17.2 million in Q2 2024 and $357,000 in Q3 2023.
- Digital and Liquid Assets: $194.6 million at the end of Q3 2024, including Bitcoin, Ethereum, US dollars, dollar-denominated stablecoins, and treasury bills.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Exodus Movement Inc (EXOD) achieved a 68% year-over-year revenue growth, reaching $20.1 million in Q3 2024.
- The company reported a net income of $0.8 million, indicating profitability.
- Exodus Movement Inc (EXOD) expanded its partnerships, including a new collaboration with Ledger and an extension with Magic Eden to mobile platforms.
- The launch of Passkeys, a tool for developers to embed digital wallets into decentralized applications, showcases the company's innovation.
- Monthly active users increased to 1.6 million in Q3 2024, up from 1.1 million a year ago, reflecting growing user engagement.
- Q3 2024 revenue was down 10% from the previous quarter, attributed to seasonally slower market activity.
- The company reported an operating loss of approximately $52,000 in Q3 2024.
- Exodus Movement Inc (EXOD) experienced a net loss on digital assets of approximately $370,000 in Q3 2024.
- The company's business performance is affected by the volatile cryptocurrency market cycles.
- Despite the positive outlook, the adoption rates for the Passkeys wallet are still in early stages, with limited details on its success.
A: We have taken a staged approach to this launch and have only recently achieved full deployment with Ledger. The results are encouraging, and we've received positive feedback from the Ledger team about the value we're providing. We are excited about the future prospects of our XO Swap and are looking to partner with other major crypto companies. - John Paul Richardson, CEO
Q: In light of the election outcome, do you anticipate any changes to regulatory policies that may impact your operations or the cryptocurrency sector broadly?
A: We expect significant changes for the industry, as we've worked hard to elect pro-crypto politicians. This should bring regulatory clarity and end regulation by enforcement. For Exodus specifically, we don't foresee any direct impact on our current operations, but we are excited about the opportunities that regulatory clarity will bring. - John Paul Richardson, CEO
Q: How has the adoption rate for the Passkeys wallet grown since launch? Are there more partnerships in the pipeline?
A: We are still early in the Passkeys launch, but we are pleased with the traction so far, having signed key partners like Rarible and Magic Square (NYSE:SQ). Our pipeline continues to grow, and we expect significant developments from this product as it simplifies onboarding for mainstream users. - John Paul Richardson, CEO
Q: Can you provide more details on the financial performance and revenue growth in Q3?
A: In Q3, we generated $20.1 million in revenue, up 68% year-over-year, driven by strength in both exchange aggregation and non-exchange aggregation revenue. Our monthly active users increased to 1.6 million, and we ended the quarter with $194.6 million in digital and liquid assets. - James Gernetzke, CFO
Q: What are the strategic priorities for Exodus Movement Inc moving forward?
A: Our strategic priorities include expanding partnerships, enhancing product offerings like Passkeys, and focusing on making self-custody simple. We aim to capture a large and growing opportunity in the digital asset market while maximizing shareholder value. - John Paul Richardson, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.