Exodus Reports Third Quarter 2024 Results
Revenue of $20.1 million, up 68% year-over-year in Q3
OMAHA, Neb., Nov. 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 third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights (Unaudited)
| In USD millions, except percentages | Q3 2024 | Q3 2023 | % Change | ||||||
| Revenue | $20.1 | $12.0 | 68 | % | |||||
| Cost of Revenues | 11.3 | 7.7 | 46 | % | |||||
| Total Operating Expenses1 | 8.8 | 5.0 | 78 | % | |||||
| General and administrative | 8.5 | 4.6 | 84 | % | |||||
| Loss on digital assets, net1 | 0.4 | 0.4 | – | ||||||
| Loss from Operations | (0.1) | (0.7) | |||||||
| Operating Margin | <-1% | -6% | |||||||
| Net Income (Loss) | $0.8 | ($0.3) | |||||||
“In the third quarter, we achieved milestones that significantly expanded our partnership strategy and product innovation,” said JP Richardson, CEO and co-founder of Exodus.
“Our new partnership with Ledger and the expansion of our Magic Eden Wallet to mobile devices will enable us to reach new users. We also launched our Passkeys product for developers, making it easier for decentralized applications to onboard their users with a frictionless wallet experience. By removing the barriers and complexities of owning digital assets, we’re helping the everyday consumer take part in the fast-growing digital asset market.”
“In Q3, we delivered both high year-over-year revenue growth and profitability, which demonstrates the strength of our business model as well as the growing adoption of the digital asset market,” said James Gernetzke, CFO of Exodus. “We are excited by the early momentum of our partnership strategy that can help drive efficient user acquisition and with our product innovation that we believe will continue to attract new users and decentralized applications to our platform.”
Third Quarter Operational and Other Financial Highlights
Revenue by category
| % of 2024 |
% of 2023 | |||||||
| Revenue ($ millions) | Q3 2024 | Operating Revenue |
Q3 2023 | Operating Revenue | ||||
| Exchange aggregation | $18.1 | 90.1 | % | $11.2 | 93.7 | % | ||
| Fiat on/off-boarding | 0.9 | 4.2 | % | 0.6 | 4.8 | % | ||
| Staking | 0.5 | 2.4 | % | 0.2 | 1.4 | % | ||
| Consulting | 0.3 | 1.5 | % | – | – | |||
| Other | 0.3 | 1.8 | % | <0.1 | 0.1 | % | ||
| Operating Revenues | $20.1 | 100.0 | % | $12.0 | 100.0 | % | ||
- Exchange provider processed volume was $0.96 billion in Q3 2024, up 69% from $0.57 billion in Q3 2023. Bitcoin, Tether (TRX Network), Tether (ETH Network), and Ethereum were the top assets traded in Q3 2024, at 26%, 17%, 12%, and 12% of volume, respectively.
- Monthly Active Users were 1.6 million in Q3 2024, compared to 1.1 million in Q3 2023.
- Digital assets and cash were $194.7 million, including $120.8 million in bitcoin and ethereum and $69.8 million in cash and cash equivalents, USDC, and treasury bills as of September 30, 2024.
Q3 2024 Webcast
Exodus will host a webcast of its third quarter 2024 fiscal results beginning at 5:00 PM (Eastern Time) on November 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 a financial technology leader empowering individuals and businesses with secure, user-friendly crypto software solutions. Since 2015, Exodus has made digital assets accessible to everyone through its multi-asset crypto wallets prioritizing design and ease of use.
With self-custodial wallets, Exodus puts customers in full control of their funds, enabling them to swap, buy, and sell crypto. Its business solutions include Passkeys Wallet and XO Swap, industry-leading tools for embedded crypto wallets and swap aggregation.
Exodus is committed to driving the future of accessible and secure finance. Learn more at www.exodus.com or follow us on X at www.x.com/exodus_io.
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) |
||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 26,547 | $ | 11,376 | ||||
| Restricted cash and cash equivalents | 83 | – | ||||||
| U.S. dollar coin ($0 and $500 USDC restricted as of September 30, 2024 and December 31, 2023 respectively) | 5 | 517 | ||||||
| Treasury bills | 43,200 | 43,151 | ||||||
| Accounts receivable | 3,014 | 3,240 | ||||||
| Prepaid expenses | 3,232 | 1,440 | ||||||
| Other current assets | 771 | 5 | ||||||
| Total current assets | 76,852 | 59,729 | ||||||
| OTHER ASSETS | ||||||||
| Fixed assets, net | 379 | 317 | ||||||
| Digital assets | 124,867 | 35,010 | ||||||
| Software assets, net | 7,315 | 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 | 134,797 | 51,990 | ||||||
| TOTAL ASSETS | $ | 211,649 | $ | 111,719 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 1,600 | $ | 1,061 | ||||
| Other current liabilities | 7,841 | 6,485 | ||||||
| Total current liabilities | 9,441 | 7,546 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Other long-term liabilities | 447 | 412 | ||||||
| Deferred tax liability | 10,607 | – | ||||||
| Total long-term liabilities | 11,054 | 412 | ||||||
| Total liabilities | 20,495 | 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, | – | – | ||||||
| 6,484,434 issued and outstanding as of September 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, | – | – | ||||||
| 20,337,375 issued and outstanding as of September 30, 2024 | – | – | ||||||
| 21,760,855 issued and outstanding as of December 31, 2023 | – | – | ||||||
| ADDITIONAL PAID IN CAPITAL | 125,642 | 122,558 | ||||||
| ACCUMULATED OTHER COMPREHENSIVE LOSS | (1,446 | ) | (1,477 | ) | ||||
| RETAINED EARNINGS (ACCUMULATED DEFICIT) | 66,958 | (17,320 | ) | |||||
| Total stockholders’ equity | 191,154 | 103,761 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 211,649 | $ | 111,719 | ||||
| Exodus Movement, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
| Three Months Ended September 30, 2024 |
Three Months Ended September 30, 2023 |
Nine Months Ended September 30, 2024 |
Nine Months Ended September 30, 2023 |
|||||||||||||
| OPERATING REVENUES | $ | 20,117 | $ | 11,980 | $ | 71,485 | $ | 37,730 | ||||||||
| COST OF REVENUES | 11,333 | 7,738 | 32,804 | 21,730 | ||||||||||||
| GROSS PROFIT | 8,784 | 4,242 | 38,681 | 16,000 | ||||||||||||
| OPERATING EXPENSES (INCOME) | ||||||||||||||||
| General and administrative | 8,466 | 4,598 | 25,575 | 14,585 | ||||||||||||
| Loss (gain) on digital assets, net | 370 | 357 | (39,197 | ) | (285 | ) | ||||||||||
| Total operating expense (income) | 8,836 | 4,955 | (13,622 | ) | 14,300 | |||||||||||
| (Loss) income from operations | (52 | ) | (713 | ) | 52,303 | 1,700 | ||||||||||
| OTHER INCOME | ||||||||||||||||
| Staking and other income | 146 | – | 701 | – | ||||||||||||
| Unrealized (loss) gain on investments | (133 | ) | (171 | ) | (219 | ) | 18 | |||||||||
| Loss on disposal of fixed assets | (36 | ) | – | (36 | ) | – | ||||||||||
| Interest income | 1,026 | 811 | 2,668 | 1,715 | ||||||||||||
| Total other income | 1,003 | 640 | 3,114 | 1,733 | ||||||||||||
| Income (loss) before income taxes | 951 | (73 | ) | 55,417 | 3,433 | |||||||||||
| INCOME TAX BENEFIT (EXPENSE) | (108 | ) | (178 | ) | (9,393 | ) | (1,042 | ) | ||||||||
| NET INCOME (LOSS) | $ | 843 | $ | (251 | ) | $ | 46,024 | $ | 2,391 | |||||||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||
| Foreign currency translation adjustment | (637 | ) | 121 | 31 | (129 | ) | ||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 206 | $ | (130 | ) | $ | 46,055 | $ | 2,262 | |||||||
| Net income (loss) per share | ||||||||||||||||
| Basic net income (loss) per share of common stock – Class A | $ | 0.03 | $ | (0.01 | ) | $ | 1.74 | $ | 0.09 | |||||||
| Basic net income (loss) per share of common stock – Class B | $ | 0.03 | $ | (0.01 | ) | $ | 1.74 | $ | 0.09 | |||||||
| Diluted net income (loss) per share of common stock – Class A | $ | 0.03 | $ | (0.01 | ) | $ | 1.44 | $ | 0.08 | |||||||
| Diluted net income (loss) per share of common stock – Class B | $ | 0.03 | $ | (0.01 | ) | $ | 1.44 | $ | 0.08 | |||||||
| Weighted average number of shares and share equivalents outstanding | ||||||||||||||||
| Weighted average number of shares used in basic computation – Class A |
6,396 | 4,060 | 5,314 | 3,804 | ||||||||||||
| Weighted average number of shares used in basic computation – Class B |
20,337 | 21,799 | 21,161 | 21,799 | ||||||||||||
| Weighted average number of shares used in diluted computation – Class A |
9,840 | 4,060 | 8,733 | 7,291 | ||||||||||||
| Weighted average number of shares used in diluted computation – Class B |
22,485 | 21,799 | 23,314 | 23,799 | ||||||||||||
| Exodus Movement, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
|||||||
| Nine Months Ended September 30, 2024 |
Nine Months Ended September 30, 2023 |
||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income | $ | 46,024 | $ | 2,391 | |||
| Adjustments to reconcile net income to | |||||||
| Net cash (used in) provided by operating activities | |||||||
| Depreciation and amortization | 3,862 | 3,353 | |||||
| Deferred tax expense | 6,752 | – | |||||
| Gain on digital assets, net | (39,197 | ) | (285 | ) | |||
| Staking and other income | (701 | ) | – | ||||
| Unrealized loss on investments | 219 | (18 | ) | ||||
| Loss on disposal of assets | 36 | – | |||||
| Stock based compensation | 5,252 | 4,682 | |||||
| Accrued interest income | (1,824 | ) | (889 | ) | |||
| Other operating activities settled in digital assets and USDC | (23,774 | ) | (9,614 | ) | |||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable | (89 | ) | – | ||||
| Prepaid expenses | (1,610 | ) | 1,460 | ||||
| Other current assets | (765 | ) | 16 | ||||
| Other long-term asset | (40 | ) | – | ||||
| Accounts payable | 549 | 708 | |||||
| Other current liabilities | (1,532 | ) | 1,118 | ||||
| Other long-term liabilities | 35 | – | |||||
| Net cash (used in) provided by operating activities | (6,803 | ) | 2,922 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of domain names | (151 | ) | – | ||||
| Purchases of fixed assets | (228 | ) | (25 | ) | |||
| Purchase of treasury bills | (73,262 | ) | (69,273 | ) | |||
| Redemption of treasury bills | 74,819 | 58,795 | |||||
| Purchases of digital assets | (2,534 | ) | – | ||||
| Disposal of digital assets held | 26,097 | – | |||||
| Net cash provided by (used in) investing activities | 24,741 | (10,503 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Repurchase of shares to pay employee withholding taxes | (2,684 | ) | (515 | ) | |||
| Exercise of stock options | – | 1 | |||||
| Net cash used in financing activities | (2,684 | ) | (514 | ) | |||
| Change in cash and cash equivalents, and restricted cash and cash equivalents | 15,254 | (8,095 | ) | ||||
| Cash and cash equivalents, and restricted cash and cash equivalents | |||||||
| Beginning of period | 11,376 | 20,494 | |||||
| End of period | 26,630 | 12,399 | |||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
| Non-cash issuance of stock | $ | 10 | $ | 20 | |||
| Non-cash capitalized software costs settled in digital assets | |||||||
| (including stock based compensation of $506 and $713 respectively) | $ | (2,959 | ) | $ | (3,930 | ) | |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
| Cash paid for income taxes | $ | (4,300 | ) | $ | (918 | ) | |
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” of Amendment No. 4 to our Registration Statement on Form 10 filed with the Securities and Exchange Commission (the “SEC”) on October 10, 2024 (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.
