Bakkt reports its revenue in Q3 rose 38% to $9.1m

Bakkt has revealed its first earnings report since it began trading on the New York Stock Exchange last month following a SPAC merger with VPC Impact Acquisition Holdings.

According to the report, its net revenue increased by 38% to $9.1m, compared to $6.6 million in the third quarter of 2020, primarily due to higher customer activity in loyalty redemptions and the addition of a large financial institution on its loyalty platform.

Operating expense stood at $39m – an increase of 60% compared to the third quarter of 2020 – primarily due to investments in business growth and closing the transaction.

Net loss was $28.8m, compared to a $18m loss in the third quarter of 2020.

Adjusted EBITDA (non-GAAP) was a loss of $24.1m compared to a loss of $12.3m compared to a year ago.

Bakkt plans to evolve into more comprehensive platform

“The company has made tremendous strides in proving Bakkt’s model, building strategic partnerships and enhancing its platform capabilities to connect the digital economy,” said Gavin Michael, CEO of Bakkt.

“As we move forward, we will invest the proceeds from our recent business combination to activate our partnerships, further deploying our capabilities with consumers, businesses and institutions.”

Michael added this, however, was all part of his plan for the company that has matured from primarily being a Bitcoin custodian and futures exchange to a much more comprehensive platform.

Michael said he wants Bakkt, which recently partnered with Google Pay, to become the hub of an extensive ecosystem of business to business and consumer retail activity, with loyalty points and digital assets such as Bitcoin and Ethereum in the centre of it all.

“We see businesses leveraging our platform to drive loyalty, and to deepen their customer relationships,” he continued.

“They’re also able to innovate with crypto services and crypto rewards, appealing to a growing segment of digitally savvy customers.”