Bitcoin Depot (BTM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $163.1M, down 17% year-over-year but up 18% sequentially, with net income of $4.4M, reversing a prior year loss.

• Surpassed 8,000 active Bitcoin ATMs, reaching 8,180 kiosks five months ahead of schedule, and expanded through new retail partnerships including Nouria Energy.

• Operates 8,068 BTMs and 7,441 BDCheckout locations as of June 30, 2024, maintaining the largest BTM market share in North America.

• Achieved $2.6B in total transacted volume and 3.6M transactions since inception, with 12.7M monthly active users.

• Announced a Bitcoin treasury strategy, allocating a portion of cash reserves to Bitcoin.

Financial highlights

• Q2 2024 revenue declined 17% year-over-year to $163M, mainly due to California legislation and kiosk relocations.

• Adjusted Gross Profit was $26.4M (16.2% margin), down 13% year-over-year, while Adjusted EBITDA was $12.7M (7.8% margin), down 36% year-over-year.

• Net income was $4.4M, compared to a $4M net loss in Q2 2023.

• Cash and cash equivalents were $43.9M at quarter end, with total assets of $97.5M.

• Operating cash flow was $11.3M for the first half of 2024.

Outlook and guidance

• No formal guidance provided due to business variability from California legislation and kiosk ramp-up.

• Management expects existing cash and cash equivalents, along with cash from operations, to be sufficient to fund operations for at least the next 12 months.

• Focused on operational enhancements, vendor pricing, and optimizing markups to drive future profitability.

• Plans for international expansion, especially in Australia and Puerto Rico, and continued pursuit of a New York license.

• Agreements with retailers cover over 18,000 locations, enabling scalable growth with limited capital expenditure.