Exodus Reports Fourth Quarter and Full Year 2023 Results
Full Year Revenue of $56.2 million
OMAHA, Neb., Feb. 29, 2024 (GLOBE NEWSWIRE) — Exodus Movement, Inc. (OTCQB: EXOD), (“the Company” or “Exodus”) the leading self-custodial cryptocurrency software platform, today announced its fiscal 2023 results for the fourth quarter and full year ended December 31, 2023. The Company reported full year revenue of $56.2 million, an increase of 11% as compared to 2022.
Fourth Quarter and Full Year 2023 Financial Highlights
| In USD millions, except percentages | Q4 2023 | Q4 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||
| Revenue | $ | 18.5 | $ | 11.2 | 64% | $ | 56.2 | $ | 50.6 | 11% | |||||||||||
| Total Cost of Revenues | 8.8 | 4.4 | 99% | 30.5 | 25.4 | 20% | |||||||||||||||
| Operating Expenses | 3.0 | 5.2 | (43%) | 17.3 | 53.6 | (68%) | |||||||||||||||
| Income from Operations1 | $ | 6.7 | $ | 1.6 | 313% | $ | 8.4 | $ | (28.3 | ) | |||||||||||
| Operating Margin | 36 | % | 14 | % | 15 | % | (56 | %) | |||||||||||||
| Net Income (loss) | $ | 10.4 | $ | (1.4 | ) | $ | 12.8 | $ | (23.1 | ) | |||||||||||
| Adjusted EBITDA2 | $ | 8.1 | $ | 3.6 | $ | 17.6 | $ | 1.4 | |||||||||||||
“The Magic Eden Wallet is proof that Exodus and app teams make a great combination,” said JP Richardson, CEO and co-founder of Exodus. “Meanwhile, our own crypto wallet, the Exodus wallet, has produced a strong quarter.”
“We empower crypto newcomers and veterans who look to control their wealth. Safely and easily take custody of your Bitcoin and cryptocurrency using Exodus.”
Fourth Quarter and Full Year Operational and Other Financial Highlights
- Exchange provider processed volume – $854.6 million in Q4 2023, up 50% from Q4 2022. Bitcoin and Tether (ETH Network) were the top assets traded in Q4 2023, at 26% and 13% of volume, respectively. Full year 2023 exchange volume totaled $2.66 billion, up 4% from the previous year.
- Exodus monthly active users3 – 906,844 in Q4 2023, up 22% from 741,813 in Q4 2022.
- Adjusted EBITDA4 – $8.1 million in the fourth quarter and $17.6 million in the year, representing an increase of 307% from the prior quarter (Q3 2023) , and a turnaround of 1122% increase from the prior year (2022).
- Digital assets and cash5 – $138.3 million, including $80.8 million in bitcoin and ethereum and $55.0 million in cash and cash equivalents, USDC, and Treasury bills as of December 31, 2023.
- Full-time equivalent team members – approximately 190 at 2023 year-end, a decrease of approximately 20 from the prior year.
- Customer response time – average response time of less than 60 minutes.
“Exodus has tuned its operations to return profits, even during challenging market conditions,” said James Gernetzke, CFO of Exodus. “Still, our business benefits most when bitcoin prices are higher, and you can see that in Q4.”
“We’ve also strengthened our core revenue drivers, the Fiat and Swap services, to make them available more widely across the industry. This ties into our Wallet-as-a-Service strategy as well.
Finally, our business ended December 2023 with increased revenue from an engaged customer base. Those elevated MAUs and swap volumes have continued through to January and February of this year.”
Q4 2023 Webcast
Exodus will host a webcast of its fourth quarter 2023 fiscal results beginning at 3:30PM (Eastern Time) on February 29, 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, manage and exchange cryptocurrencies like Bitcoin, Ethereum, and more across an industry-leading 10,000+ asset pairs from a beautiful, easy-to-use wallet. The self-custodial functionality is encrypted locally on users’ own devices, ensuring privacy, security and complete control over their wealth. For more info visit 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.
Non-GAAP Financial Measure
Earnings before interest, taxes and depreciation and amortization and Adjusted earnings before interest, taxes and depreciation and amortization.
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 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 (income) expense, stock-based compensation expense, impairment, investment income, fair value gain or loss on derivatives, non-recurring legal reserves and related costs, and other loss, net.
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:
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
| In USD millions | 4Q23 | 4Q22 | 2023 | 2022 | ||||||||
| Net (loss) income | $ | 10.4 | $ | (1.4 | ) | $ | 12.8 | $ | (23.1 | ) | ||
| Interest income | (0.5 | ) | (0.2 | ) | (2.2 | ) | (0.6 | ) | ||||
| Income tax expense (benefit) | (3.0 | ) | 4.4 | (1.9 | ) | (1.0 | ) | |||||
| Depreciation and amortization | 1.2 | 1.8 | 4.5 | 3.5 | ||||||||
| EBITDA | $ | 8.1 | $ | 4.6 | $ | 13.2 | $ | (21.2 | ) | |||
| Loss/(gain) on impairment of digital assets, net | (1.2 | ) | (1.2 | ) | (1.4 | ) | 18.3 | |||||
| Impairment of investments | 0.2 | 0.5 | 0.2 | 0.5 | ||||||||
| Unrealized loss on investments | (0.2 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | ||||
| Stock-based compensation | 1.2 | 0.5 | 5.8 | 4.1 | ||||||||
| Adjusted EBITDA | $ | 8.1 | $ | 4.1 | $ | 17.6 | $ | 1.4 | ||||
Forward-Looking Statements
This press release contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us as of the date hereof. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “intend,” “believe,” or other comparable terminology. 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. These statements involve risks, uncertainties, assumptions and other factors that are difficult to predict and may cause actual results or performance to be materially and adversely different.
Factors that might cause such a difference include, but are not limited to: expectations regarding future customer adoption of Exodus for dApps, DeFi and NFTs compared to its competitors; the impact of the COVID-19 pandemic on the health and safety of our employees, users, as well as the physical and economic impacts of the various recommendations, orders, and protocols issued by local and national governmental agencies in light of continual evolution of the pandemic, including any periodic reimplementation of preventative measures in various global locations; the ongoing conflict in Ukraine, the impact of sanctions or other restrictive actions, by the United States and other countries, and the potential response by Russia thereto; difficulties predicting user behavior and changes in user spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages, inflation and consumer confidence, particularly in light of the pandemic and as pandemic-related restrictions are eased regionally and globally; unexpected or rapid changes in the growth or decline of our domestic and/or international markets; increasing competition from existing and new competitors; rapidly evolving and groundbreaking advances that fundamentally alter the digital asset and cryptocurrency industry; continued compliance with regulatory requirements; volatility in the price of cryptocurrencies, such as Bitcoin, and other digital assets; the possibility that the development and release of new products or enhancements to existing products do not proceed in accordance with the anticipated timeline or may themselves contain bugs or errors requiring remediation and that the market for the sale of these new or enhanced products may not develop as expected; the risks relating to our ability to sustain or increase profitability or revenue growth in future periods (or minimize declines) while controlling expenses; the compromise of user data for any reason; foreign operational, political and other risks relating to our operations; unexpected delays encountered during the audit process; and the loss of key personnel, labor shortages or work stoppages.
More information on the factors, risks and uncertainties that could cause or contribute to such differences is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion & Analysis” sections of our offering statement on Form 10-12G. We cannot assure you that the forward-looking statements will prove to be accurate. These forward-looking statements speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements.
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1 Income from operations is before D&A/Impairments and adjusted for investment income.
2 Non-GAAP metric. For a reconciliation of Net Income to Adjusted EBITDA, please refer to the reconciliation table at the end of this press release.
3 Monthly active users as of December 31, 2023.
4 Non-GAAP metric. See footnotes at the end of this release.
5 Digital assets at Market Value as of December 31, 2023.
