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Bakkt’s Fourth Quarter Report Shows Increased Revenue and Expenditure

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It is reported that Bakkt released a fourth quarter report that its revenue and expenditure increased in the fourth quarter, driven by another large impairment

Bakkts Fourth Quarter Report Shows Increased Revenue and Expenditure

It is reported that Bakkt released a fourth quarter report that its revenue and expenditure increased in the fourth quarter, driven by another large impairment charge. Revenue was US $15.6 million, lower than the US $16 million estimated by FactSet, but still up 14% year-on-year. Adjusted earnings before interest, tax, depreciation and amortization were lower than expected, at US $30.5 million, 30.3% higher than last year. The estimated figure is – 28 million US dollars. Operating expenses increased from $86 million to $341 million, an increase of nearly 300% over the fourth quarter of 2022. The expense was driven by non-cash goodwill and intangible asset impairment expenditure of approximately US $272 million.

Bakkt’s revenue in the fourth quarter was US $15.6 million, up 14% year-on-year

Analysis based on this information:


The report of the fourth quarter of Bakkt shows that their revenue and expenditure have increased, thanks to another large impairment charge. The revenue generated in the last quarter of 2022 was $15.6 million, slightly lower than what was estimated by FactSet ($16 million). Even though the estimate was not reached, the company’s revenue increased by 14% when compared to the same period last year.

On the other hand, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) fell short of expectations, amounting to $30.5 million, which is 30.3% higher year-on-year. The estimated figure was $28 million. Despite this, Bakkt’s operating expenses escalated, with an almost 300% increase from $86 million to $341 million in comparison to the fourth quarter of 2022. This increase was largely influenced by non-cash goodwill and intangible asset impairment expenditure amounting to approximately $272 million.

Bakkt’s impairment charge comes from the decline in the value of goodwill and intangible assets. Goodwill stems from the premium value of an acquired company over its net assets, while intangible assets are assets without physical substance or financial value, such as patents and trademarks. As a result, the impairment charge will reflect the decrease in the estimated value of these intangible assets and goodwill on Bakkt’s balance sheets.

Overall, Bakkt’s fourth-quarter report indicates that even though their revenue has increased, it is not as high as what was expected. However, their expenses have gone up considerably because of the impairment charge. Bakkt is a digital asset exchange and custodian backed by global exchange and clearinghouse operator Intercontinental Exchange. This company has been moving rapidly to build infrastructure in the cryptocurrency space and drive mainstream adoption of digital assets.

In conclusion, Bakkt’s fourth quarter report shows mixed results, with revenue increment but profitability shortfall. The expenses managed to incur a significant increase with the non-cash goodwill and intangible asset impairment expenditures, escalating the company’s net expenditure.

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