Company Announcements

Exodus Reports Second Quarter 2024 Results

Source: GlobeNewswire
Exodus Reports Second Quarter 2024 Results

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 percentagesQ2 2024Q2 2023% Change
Revenue$22.3$12.480%
Cost of Revenues10.87.151%
Total Operating Expenses126.33.8589%
General and administrative9.14.0126%
Loss (gain) on digital assets, net117.2(0.2)(8,673%)
(Loss) income from Operations(14.7)1.5(1,113%)
Operating Margin(66%)12% 
Net (Loss) Income$(9.6)$1.9(614%)
Adjusted EBITDA2$5.8$4.143%


“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$19.989.4%$11.693.7%
Fiat on/off-boarding 1.04.3% 0.64.5%
Staking 0.52.3% 0.21.6%
Consulting 0.52.2% -- 
Other 0.41.8%<0.10.2%
Operating Revenues$22.3 100.0%$12.4100.0%
       
  • 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.