Q2 2021 Voyager Digital Ltd Earnings Call
Ladies and gentlemen, please standby the Voyager 2021 earnings conference call will begin momentarily. Thank you for your patience.
[music].
Yeah.
Good day and welcome to the Voyager digital fiscal year second quarter 2021 on this conference call.
At this time, all participants are on a listen only mode.
After the Speakers' prepared remarks, we will conduct a question answer session.
Or what are you asking a question or make a comment. Please press the star key followed by number one on your Touchtone phone.
Questions will be taken on the order of the Odyssey at.
At this time I'd like to turn the call over to you, Mike Mike Chief Communications Officer at Voyager. Please go ahead Sir.
Thank you operator, I would like to welcome everyone to Voyager Digital Ltd earnings call today, we will be discussing our fiscal 2021 second quarter results, which we announced earlier. This morning with me on the call are Steve Ehrlich, Our Chief Executive Officer, and Evan Surat Bliss CFO I'd like to take a moment to direct investors.
To the Investor Relations section of our website at Investor invest Blazer Dot com, where we have posted on our investor presentation as well as our latest announcements on selected unaudited operating metrics and activities.
Additionally, you can find our recently announced upcoming Investor Conference schedule.
Before we get started on want to remind everyone that certain statements discussed on this call are based on information as of today March force and contain forward looking statements, which are subject to risks and uncertainties and given our operating history market volatility and unprecedented industry growth trends could materially deviate from today's levels.
Actual results could materially could differ materially from our forward looking statements if any of our key assumptions discussed in today's earnings press release on the comments made during this conference call or in the latest reports on SEDAR filings each of which can be found on our website www dot invest Voyager dot com on their our profile at www.
<unk> Dot SEDAR dot com are incorrect. The company has made assumptions that most of the significant events occur outside the company's normal course of business and the current trends and we expect the digital assets continue listeners are cautioned that assets under management trading volumes and other metrics of voyages business fluctuate and may increase or decrease from time to.
Timing of that such fluctuations are beyond the company's control, we do not undertake any duty to update any forward looking statements, except where required by law.
Also want to caution listeners that past performance is not indicative of future performance and current trends in the business and demand for digital assets may not continue and listeners should not put undue reliance on past performance and current trends as Paul will touch on certain unaudited performance metrics of the business to the month ended February 28, 2021 provided on our earned.
<unk> press release issued today I would encourage each of you to review on our forward looking statements, which back to disclosure and similar disclosures in today's press release with that let me turn the call over to Steve voyages co founder and CEO.
Thanks, Mike and good afternoon, everyone I'll briefly review voyages positioning within the rapidly growing digital assets industry, the December quarter and updates on key metrics.
Please note the dollar amounts referenced are in U S dollars unless otherwise noted.
Afterwards, Evan will walk us through the financial highlights for the period and then we will open up the call for your questions.
The December quarter was an important period for us.
During the quarter acceptance of digital assets and crypto currencies continued to accelerate as main street players embraced bitcoin and stated their intention to convert major parts of their treasury into big point.
Benefiting from these trends Voyager started to become a major player in this space capturing significant market share with our customer friendly easy to use Zero Commission agency brokerage platform for trading crypto currencies. These.
These industry trends have continued during calendar 2021, and now the company is better positioned than ever to grow its business and reach a broader audience of main street investors by helping to educate them about potential investment opportunities with digital assets and their increasing global acceptance.
We have come a long way since we started today voyagers platform offers over 50 digital assets with more than 20 of them bearing interest with no lockups.
The interest rates vary over the various points of the rate as high as 95% on the rapidly growing U S. D C point.
For the December quarter, Voyager reported revenues of $3 6 million and ended the quarter with approximately 43000 customer funded accounts.
We ended the December quarter on a strong footing with over $230 million of assets under management as we headed into the new calendar year.
Our strong momentum has continued into 2021 and Voyager is quickly becoming the platform of choice for retail investors as evidenced by our unprecedented year to date growth.
Previously the company announced January trending trading revenue of approximately $8 5 million on just over 1 million trades. Additionally.
Additionally in January Voyager reported funded account growth of over 150% as we opened 65000 newly funded accounts during that month.
This rapid acceleration of account growth in trading volume continued into February as verified users grew to over 605000 accounts and trading volume continued to grow to over 2 million trades in the months.
At February and Voyager had over 175000 funded accounts, which execute on an average 70000 trades per day, a significant increase compared to the 30000 per day in January.
This increase in funded accounts on trades per day led to February revenue of over $20 million and assets under management of over 1.7 billion. The increase in AUM was due to the net deposits above a 400 million plus the appreciation of many crypto assets under management is one 7 billion.
On a assets represents another substantial increase compared to the $230 million at December 31, 2020.
We are extremely pleased with our growth to date in January we saw an unprecedented 250000 app downloads over a three day period, causing the company to initiate a waitlist to judiciously onboard new users.
We have already worked through the bulk of this backlog on our goal was to eliminate the waitlist in the coming days.
Based on these learnings we are expeditiously scaling our technology platform for the growth we anticipate in 2021 day.
Continued growth will come from additional market adoption of digital assets and new product offerings and international expansion.
To support this anticipated growth, we expect to triple our work force in 2021.
With the growth of assets under management, we remind investors of our two main revenue sources spread revenue and interest revenue.
Estimated spread revenue was derived by the trading velocity of our assets while interest revenue was driven by the gross interest earned on the overall assets under management here.
Historically the company has earned between 10% to 12% annualized revenue on assets under management.
At this point I would also like to remind investors of certain drivers of our business.
As an agency brokerage business market volatility can often act as our friend Voyager.
Boyd you execute trades and character spread revenue in both up and down markets. One example of the powerful agency model happened on Tuesday February 23rd with pinpoint decreased from a high of 56000 to 45000.
What day Voyager experienced a record day for trading volume revenue and net deposits investors were very active buying the dip across all of the points Voyager offers.
With our recently completed capital raise of 146 million, our balance sheet is stronger than ever.
We are excited to see an ever growing number of investors utilizing our platform and as we continue to execute we look forward to delivering value to all our stakeholders.
With our strong balance we intend to deploy capital to accelerate our growth through strategic marketing initiatives further development of our technology infrastructure and building strength staff across all departments to support our rapid growth and position Voyager is a digital financial services firm of the future.
As part of our management team, we recently added David Raso as Voyager General Counsel, Dan Constantino as Chief Information Security Officer, and Jamie <unk> to lead our HR effort, we expect to continue building out our teams throughout the course of the year.
In addition in February Voyager welcome Kristian talked a part of the law from a fashion tomorrow to the company's board of directors.
With his extensive background in corporate finance true.
Scott.
Christian is a welcome addition.
The strength in our corporate governance efforts.
Going forward Voyager will continue to bring new products to our platform, even as we expand geographically.
In 2021, and beyond we expect to add debit cards credit cards stock trading and the ability to trade on margin to our suite of offerings.
Complementing this we will look to grow internationally by expanding our operations into both Canada and Europe.
As part of our international growth strategy in December Voyager required French regulated broker LG.
Dispositions Voyager with a fully regulated platform to support future expansion into Europe.
Voyager has also applied with the Ontario Securities Commission. So we can offer our platform in Canada.
We are very proud of the steps we've already taken in this focus area and look forward to our geographic expansion in 2021.
In conclusion as our dramatic growth has demonstrated our strategy is clearly working.
Boy just focus on the retail investor, it's becoming more and more popular and our loyal community social media outreach combined with our own increased marketing activities is helping to drive users signing up in record numbers on Voyager.
By offering a zero commission product with high interest payouts on the largest selection of digital assets to trade and invest in Voyager is attracting a broad group of investors who value the Voyager proposition.
We offer our customers deep liquidity and multiple trading partners, while providing them with the shape and secured diversified custodial solution.
With all we have to offer it's easy to see why Voyager has quickly become a premier digital financial services firm.
With that I'll turn the call over to Evan to review the quarter and our financial positioning in more detail.
Okay.
Thank you, Steve and thank you all for joining us today.
A reminder, all figures discussed on today's call on U S dollars under Ifr S.
I'll speak to our fiscal 2021 second quarter ended December 31, 2020, as well as selected unaudited metrics and activities from January and February of our fiscal 2021 third quarter, which had been previously disclosed in our press releases and available on our website.
We had a strong second quarter with a very strong finish in December closing the period with $230 million AUM of 200% increase from the end of Q1 with net deposits accounting for more than 40% of this increase.
Total revenue in the second quarter increased nearly 4000% to $3 6 million.
Fee revenue grew 2200% to $2 1 million.
Interest revenue for the second quarter was $1 5 million and was not included in our product offering last year.
We saw increased performance across all of our top line operating metrics during the second quarter.
Compared to the first quarter, which was previously our strongest quarter to date, we increased funded accounts more than 40% to nearly 43000 are trading throughput increased with more than 450000 trades and $340 million of volume compared to 356000 trades and <unk>.
$215 million of volume in the first quarter.
For the second quarter and continuing into 2021 calendar year, we have seen strong and consistent month over month top line growth, having exited December at a $20 million annualized run rate. We previously announced we exited January 2021 at a $100 million annualized run rate.
And with today's announcement of February results, we finished the month and annualized run rate in excess of $240 million.
Turning to expenses total operating expenses for the second quarter increased $3 6 million from the prior year.
This was driven by increased variable costs associated with our higher trading volumes.
<unk> of interest expense associated with our interest product offering.
Increased head count as we continue to scale and increased marketing spend during the quarter.
As of December 31, 2020, our cash and cash equivalents, including restricted cash as well as corporate investments in digital assets exceeded $18 million.
The corporate investments in digital assets includes more than $75 million of corporate funds that were invested in USB C.
Having completed private placement in both January and February the company entered the second half of the fiscal year with a significantly stronger balance sheet and as of today. The company had an overall cash and liquid investments position in excess of $200 million.
This concludes our prepared remarks with that I'll now turn it over to our operator, who will open the line for questions.
If you would like to ask a question on the Satcom on at this time. Please press the star key followed by number one on your question on phone, we'll pause for just a moment will compile the Q&A roster.
Yeah.
Your first question is from the line of Pat <unk> with Stifel. Please go ahead.
Oh, Hi, guys. Good evening, Thanks for taking my questions and I guess, that's on your first conference call.
Hey, Deepak.
I think it is a really first formal call. So yeah, and thanks for joining call well congrats on that and happy to ask the first question on your first call.
You know, it's pretty impressive results for February.
$20 million on average AUM for the month I calculate an average of $1 2 billion through the month of fab it looks like a 20% annualized monetize them.
On significantly higher than the 10% to 12% you were talked about earlier can you talk about what's going on there and what may be happening on the spread of the interest side that youre seeing today.
Yeah look I think in the month of February as it started in January we started to see in our customers are active customers I think one thing that gets missed in all of this as we focus on engaged users I think one of the metrics, we'd like to see after seeing some other information in the market over the last week is something like.
We had 75% of our customers of our funded accounts actually made a trade in the month of February. So we haven't really engaged active customer base that comes back and looks at the App multiple times a day, both trades multiple times a month. So we're getting more velocity out of the trades from customers at the same.
Our strategy of being an all points as well as bitcoin and ethereum the top four or five coins, which we always talk about there were a little bit higher spreads on that has increased our spreads as well. So when you couple the engagement and the activity of our customers with the coins Theyre trading you see higher numbers and obviously.
That 10, or 12% gross 10, 15, 20% because of the engagement of our users we have a very loyal community people love, our App and they love to trade on our App.
Got it so just in terms of the interest rates in general.
Every day I read about more companies offering some kind of lending product in crypto.
What are you seeing in terms of rates Youre still mentioned that you are at nine 5% for U S. D. C. Any kind of directional trends, we're seeing on rates or any kind of indication you can give us on on your comfort on on how stable those are.
Yeah actually on <unk>.
Starting to see them spike a little bit upward.
With us and therefore, starting to gather more but I think the other interesting thing on that is there is more and more coins become.
18 coins like Ethereum 2.0, we get to take part on that for our customers in the near future to and be able to stake and I think the staking rewards on ethereum is seven two.
<unk>, 2% or something of that nature.
Taking reward so.
Not only are we seeing more coins being able to be states, including the eventual Voyager token, which will have a 7% staking. We will also see we're also seeing higher rates paid by our borrowers for coins, especially U S. D C.
Okay. Okay. That's helpful. Thank you and then just going to your account growth.
You did 65000 account last month.
Said another 70000 accounts in February.
Is that the speeds on it like what's the fastest you've mentioned that you're a clean most of the waitlist.
What have you done to kind of help clear that logjam on and how quickly can you on board accounts.
Yeah.
The account growth would've been even greater this month, if we didn't have the wait list and we're going to have as I mentioned in the prepared statement. We were through the wait list and over the next few days, we won't have to wait list anymore.
So we expect actually the account growth to continue at a faster pace I think the combination of our.
The community and the organic side of our customer acquisition with what we're doing now in the <unk>.
The marketing budget debt, we've now assigned for.
For the coming months with the fund raise we believe that we will we haven't hit any ceiling on that $65 70, I think it is going to continue to grow.
Okay, and then I noticed the conversion rate from verified users to funded accounts went up.
30%.
What's the strategy for getting that conversion or anything changed there and there is a way of bringing money into the platform.
We have a couple of tricks up our sleeves and the future here too.
To accelerate debt and continue its one of our main areas of focus on I think it's a really important area of focus compared to some of the competitors.
That the trading in new funded accounts are a much lower percentage than we are we put a lot of energy into pushing people down the funnel and incentivize them in the program and things, we do and we haven't used up all of our trips yet I've got a few still up my sleeves that we're ready to unveil over the next 60 to 90 months 60 to 90 days not months.
[laughter], Okay looking forward to that I've got one more question and then I'll I'll jump back in the queue to give others a chance.
You mentioned the capital raise.
<unk> got quite a bit of it.
You talked about a big one marks on budget, maybe you can give us a sense of how you break it down into chunks on what the priorities are those chunk Saar and have an average.
Can you give us a sense of cost structure that you're targeting in terms of opex spend rate over the next 12 months to 24 months that'd be helpful from model. Thank you.
Got it so could you repeat the first part I heard it broke up there for a second yeah. Just in terms of the capital raise you know you've got a lot of capital on the balance sheet, how do you break it down into various priorities and on what do you spend it on you mentioned marketing budget earlier can you just give us a big percentage of that you break it down on how you plan to spend on.
Yeah look I think our key focus on the spending of money is is the three three parts. One is keep accelerating marketing do the direct to consumer that we've been doing it's super effective in doing that and keep driving that home.
But on top of that you'll see us start doing some more branding on that to build the brand as we get more and more brand recognition in the in the marketplace and we take our leadership position in that so we're going to spend a good chunk of that money haven't determined exactly the amount on the marketing side, but then building out the team right and as we've always talked about and.
We hired leadership positions in Gan Constantino, David <unk> call, we're going to add some more leadership positions to places, where we think we need it.
Is marketing.
And then we're going to just deepen the team altogether and deepen our service team, but the lion's share 50% of our increased budget is going to be in a marketing were really good and effective at it and we're going to continue to spend money on the marketing side to keep growing the account and get debt market share that we're grabbing from everybody else right now keep accelerating debt.
Land grab.
Okay, Great and then in the fall from Heaven.
Evan.
Any kind of spend rate, we should be thinking of like 40 million Bucks over the next 12 months or 50 or are on.
Burn rate that you guys are targeting.
From an ex from in our burn rate perspective, I think we're just we're not coming out with that guidance just yet.
We do look at it Youll see our financials filed later today I think we have about.
<unk>.
$5 5 million of G&A expense and.
Hi, it's Adam.
800000 of product development I think.
The business model as that has grown quite a bit from there, but I think from a head count perspective.
It could be.
We could be looking at tripling our head count.
From there across sports and you'll get salaries and comp expense and then marketing is the other big component on there again youll see in net financials, we spent about.
$1 million for the three months and in marketing expense I think on.
As Steve alluded there is plenty of room, there for us to growth.
And then the other big expense you will see is that.
Interest expense.
Associated with our interest product offering and that one word.
Continued growth Fortunately as we grow interest revenue. So those are the kind of the three big expenses.
Okay. Thanks for that Oh, I'll pass the line now and maybe jump back in the queue in the fall.
Thanks Deepak.
Your next question is from the line of Kevin Dede with H C. W. Please go ahead.
Good afternoon, guys, Kevin Didi HC Wainwright, thanks for taking my questions.
A big one from me Steve is just I guess sort of a 20000 foot view. So could you talk to sort of the dynamics of the industry in general and the correlation perhaps between customer growth and.
Oh bitcoin price on trading velocity.
Yeah, It's a great question and thanks for participating Kevin.
Look I think we're seeing we're seeing customer growth and we've seen big point go down into the 44000 range over the last few days too and it hasnt slowed our customer growth.
In effect, it's bringing more people in because it's a lower point to buy big point at and some of the all points but.
Our model from day, one was set out to be not just a bitcoin and ethereum broker because we look at that and say, it's almost like an online broker just offering Fang stocks, we need to have more.
Because there's good projects that are being done like like Dot is one of them that we see a lot of activity link is another one of our customers are buying quite a bit and investing there. So our MAU. Our model on strategy has always been to have multiple points give people that access to a bigger pool than they get anywhere else make it easy for them. When there is dips in the market are.
Customers buy.
And then they get the interest on it so we're seeing more and more what's surprising to me and with what we laid out when we put together and went ahead and thought ethos 18 months ago for the crypto transfers, we're seeing more deposits not only we've seen an increase from the CFS deposits, we're seeing a tremendous increase on the crypto dips.
It's coming on our platform now too so we're seeing it from both ends we are the place for agency broke for agency customers to get that debt trading opportunity and investing.
Alright would you buy like peeling the onion back just a little bit further Steve so we'd get a better handle.
On the agency and your interaction with I.
I guess the exchanges have.
Have you made progress and sort of expanding your web and accessing.
Yeah that would be.
The opportunity to exploit other exchanges and can you kind of talk to how that's developed and how you've expanded sort of the back end I guess of your platform.
We're constantly looking to AD exchanges and market makers and liquidity providers.
And we get calls from all the exchanges all the time wanting liquidity from us as we start.
Gathering one 6 billion of trading volume in a month.
A bit of volume that these guys want so we're always constantly we don't really put out the list of of exchanges we work with.
We keep that very close to the best but we're constantly looking at expanding and adding them to our to the mix all the time.
How how integral is that functionality to your growth trajectory do you think.
Yeah.
Look I think we set ourselves apart from all the others because of the depth of liquidity. We bring so is an integral to have a certain level of market makers and exchanges. We have in our mind, what we think is the right.
Allocation between all of them as exchanges to drive the best pricing engine. We can put together a obviously were not an exchange. So it's integral to us to have as many exchanges and market centers provide liquidity debt that we're comfortable with because I think one of the key things about how we choose.
The partners is understanding who their customers are and how they operate the liquidity can we move points on and off so theres a whole checklist of items that we look at to make sure that we're connecting to the right exchanges and partners.
Okay.
Thanks for adding that color. It was an aspect of your business I, just havent become familiar with yet so I appreciate the handholding would you mind talking about the.
The New York bit license, where are you are there and maybe dialing in a little bit more.
In terms of the timing on your international expansion plans.
Yes.
Look on the bid license side, we've been working with the New York State DFS for some time now for.
For those who don't know they've only given out one bit license in the entire year of 2020.
But we're working down the path.
Forward it all the information they requested for US we're in line for their review.
They are a very limited staff, but.
I'm hopeful and believe that we'll get that over the next few months. It's just that you have a backlog of stuffing in this COVID-19 World I don't think it's it's it's not prime day, giving out extra licenses I can tell you that and so we expect to be there and have that through in the next few months on the international front.
We're working very closely with the Ams in France.
Dotting all the I's crossing the Tees to make sure that our Ky see money movements, all satisfy all their requirements so far everything's everything.
Everything is good on that front, and then working with the OFC up in Canada.
To make sure that we operate as a regulated entity.
Up in Canada, because our theory and our business model is all all based upon working with the regulators and working in regulated environments under the rules of that jurisdiction.
Okay.
I know you alluded in your prepared remarks that you hope to get both of those moves done. This calendar year is that sort of the way we should think about it.
That's our plan our plan is to get that done.
Soon as we can dot the I's and cross the Ts with all the regulators and get their approval, we're moving fast and furious on that front.
Okay last last question from me Steve.
I'm just curious about how you're managing your digital marketing campaign has a lot of that driven in house are you working with.
Agents, how how is that sort of come into market.
Back in November we hired Matt Jager to run our digital marketing and Thats done and ex especially good job with us cleaning up our tech rack our tech stack.
And putting a lot of good.
Platforms in place for us to use we do it all internally right now we do have a little bit of.
One or two outside debt just help us manage it but all the decisions we make are internal.
And so we've done a real nice job, but we're expanding that team too.
And adding to the marketing team to add more verticals outside of digital advertising. We're already we're also really effective.
In social media and Influencers, whether they're pro athletes or their crypto influencers that really help us spread the word about Voyager Matt Barkley.
Marshall Faulk of two big Influencers and Stephen for Scotty now two of the A's some really big Influencers with us working with us to spread the word but digital we do pretty much in house and we're going to continue expanding our team.
Okay. So the increase in expense there will that go to continue to build in house or do you think youre going to.
Leverage outside no services to bolster your you know your debt to market on on marketing.
A little of both now because of the budget, we have and from the fund range. We think that we can efficiently do both in house and use some outside expertise to help us expand upon that.
Great great great. Okay, well. Thanks. Thank you so much for entertaining the questions Steve really appreciate it.
Thank you.
Your next question is from the line of Chris Sakai with singular research. Please go ahead.
Hi, everyone. Thanks for taking my question.
Just had a question on I guess the.
We funded new funded accounts.
Growing from 65000 to 70000 from January to February.
And then your net deposits growing from $1 70 to 400.
Wanted to see is are you guys seeing a different type of investor now and.
And I wanted to get some color on.
As the backlog that you mentioned that runs out I mean, how are these new funded accounts.
Where do you see them ending in the quarter on next quarter.
Well, so let me give some clarity to the 400 million net deposits.
We don't we haven't put out to the market what that breakdown is between new funded accounts first time funders and returning funders, we see tremendous amount of engagement and so one of the reasons you see it go from $1 70 to 400 is existing customers, bringing more assets on the platform as we get a larger <unk>.
Share of wallet from those customers.
Whether they are moving from their traditional bank and moving more cash on the platform to earn nine 5% USD interest or moving bitcoin in from one of the other places to earn five 5% interest and have the ability to trade. So our customers tend to fund.
Three to $5000 and then they keep adding from there. So that's back to the engagement of our customers, which is a really important thing to remember.
Keep reminding people of our customers are really engaged where they bring more and more assets to the platform. So that $400 million should continue to grow because our customers are bringing more assets on the platform. So as we grow new customers.
Existing guys put more money on our platform as well so to the next part of where we're going to get more customers, we're going to continue our marketing and keep going and expand our budget. So we can keep attracting more and more customers to our platform, whether we do that through the.
The digital edge or our relationships with the influencers or some other techniques that we have all this stuff is going to help us get more customers on the platform.
Okay, Great and then my next question I guess.
For the month.
For the quarter ending in December.
G&A was what $5 5 million.
And now on for 2021, you guys are forecasting.
Triple Tripling your workforce.
Wanted to get some idea and color on where do you see G&A.
When when the Workforces tripled.
Yes. This is Evan strapless here so.
On the $5 5 million.
For G&A.
Salaries and <unk> and.
In share count was.
Probably call. It 700000, so that'll give you some somebody on the proportion.
The head count relative to G&A.
And then in the product development side.
The other category on our P&L.
Ken There's head count component in there that is probably another 700000 in there as well.
Okay.
Alright, well thanks for that.
Oh no problem. Thanks, Thanks, Chris.
Your next question is from the line of Dan of Wisconsin to Russell. Please go ahead.
Thank you for taking my question I've got to say you guys are really phenomenal as far as managing the business.
Congratulations on a great quarter, and keeping keeping up with demand.
My question is can.
Can you give us some kind of breakdown or further guidance on.
On who your customers are is it anything any sense of age or geography are they mostly U S.
Where are they by state anything I mean, just can move from kind of sense of debt I know, it's an open call. So you got to be careful what you say, but.
Yes, so Dan thanks for thanks for being on the call. Thanks for the question.
Look we are only in the U S. Today, so all of our customers are.
In the U S.
Our average age of our customer we go for a sweet spot of customer that is tends to be probably in there.
Mid to early thirties.
And they are engaged in the market and engaged in crypto and I think one of the Phenomenons that I'd like to point out to at this point is the fact that over the last month with what's gone on in the equity market with the <unk> chat boards and all that we're seeing more and more adoption of crypto by that group of customers because.
What they believe is a free and fair market of crypto debt the retail consumers can have a much more.
Impact into the market.
And so we're seeing more and more of that group of customers come on board, but today, it's only U S.
We're looking to expand into Canada and in Europe, but we're a U S based business with U S customers today.
Okay.
Hum.
And.
Are there besides besides I guess, New York or are there other states that you would.
Love to get into.
We're in 49 states today, we offer our services in 49 States, It's only New York debt, we're not we don't offer the surplus.
Awesome.
Okay. Thank you.
Thanks, Dan.
And your next question is from the line of attack recall with Stifel. Please go ahead.
Oh, Hey, guys. Thanks for taking my follow up then.
To hear other people on the call Crypto I guess that means that people are paying attention.
Steve I wanted to go back to that 20000 foot view, maybe from irregular regulatory perspective, we've had a new head of you haven't you had a treasury SEC et cetera, you know a large competitor filed to go public and they're in their S. One is out and we've had the New York Attorney General settled with Heather.
Can you kind of give us an assessment on your view of where we are with the regulators.
And your interpretation of these kind of changes that happened last couple of months and the outlook from a regulatory perspective.
Yeah look I think those changes.
Seem to have some positive impact on the crypto market I think there's.
Look the people that are now in place and a lot of those roles understand blockchain understand crypto I think that will lead to thoughtful regulation, which is a boon for crypto I think when that comes on.
Full regulation about market structure about custody about how you are.
Reserve customer balances and account from all those things are good and so I think the new.
The new administration will be good for crypto because of their openness to think about it and how to put regulation in place.
And you did mentioned.
Previously last week, followed Thats, one from one of our <unk>.
But also one of our exchanges that we use.
We're excited by that gave US a lot of document to read 300, plus pages of documents to read.
It gives us it gives us a good roadmap.
You know the biggest guy banging down the door and get get through and go to the NASDAQ I think it gives us a path to get to NASDAQ now too as a company. So once we can get get through reading 320 pages.
We will get but I think that it's good for the industry to it really is.
And we're excited by their filing and what it could mean for US is we want to graduate from.
From the Cfe to the TFS to the Toronto stock exchange, which is in our roadmap and then from there to the NASDAQ that's all part of our roadmap.
Excellent so you've got a more accommodating regulatory environment and you guys pretty much knocked down on a security risk earlier from the technology risk seems to be well in hand.
So what kind of keeps you up at night and and how should we think about risk on the business going forward.
Just want to grow the business, so I never sleep.
I think it's I don't really have stuff that really keeps me up at night.
To me, it's just thinking about how we can continue to grow our business, adding the products.
Growing the customers, making sure our customers are happy and satisfied because I think I've been doing retail businesses now for 22 years.
And the most important aspect of our retail business is listening to your customer and understanding their needs and trying to solve problems for them and trying to listen to them and respond to them. They were they are our business we talk about internally.
On an one eight is customers in security.
And so do I stay up at night trying to think how I can satisfy all the customers and their demand that's what really what keeps me up at night, because I want I want I want 100% customer satisfaction, which is nearly an impossible task, but that's what I strive for.
Great. That's really helpful. I appreciate that I'm glad you're not staying operating 300 page S ones.
Yeah.
On waiting for someone to give me the cliff notes version.
I appreciate you taking my questions and I'll pass along thanks, Thanks, Steve.
And I'm showing no further questions at this time I would like to turn the call back to management for closing remarks.
Well I just wanted to say thank you to everyone for.
For listening to the call today Voyager itself is extremely excited about our business prospects where were going the growth of customers, we've had and where the industry is going and we look forward to.
To finishing up the quarter strong and speaking to everybody again in the near future. So thank you very much again and have a great night.
Ladies and gentlemen. This concludes today's conference call. Thank you for your participation you may now disconnect your line.
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