Q2 2022 Voyager Digital Ltd Earnings Call
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Speaker 1: Please stand by. Your program is about to begin. If you should need any audio assistance during your call, please press star zero.
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Speaker 1: Good day and welcome to this Voyager Digital Fiscal Year 2nd Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Good day and welcome to this Voyager digital fiscal year second quarter 2022 earnings conference call. At this time all participants are in a listen only mode. After the prepared remarks, we will conduct a question and answer session in order to ask a question I'll make a comment please press star one on your Touchtone phone.
Speaker 1: After the prepared remarks, we will conduct a question and answer session. In order to ask a question or make a comment, please press star 1 on your touchtone phone pad at any time. Questions will be taken in the order that they received. At this time, I'd like to turn the call over to Mike Legg, Chief Communications Officer at Voyager. Please go ahead, sir.
Pat It anytime questions will be taken in the order. They received at this time I'd like to turn the call over to Mike Lang Chief Communications Officer at Voyager. Please go ahead Sir.
Speaker 2: Thank you, Operator. I'd like to welcome everyone to Voyager Digital Limited's earnings call. Today, we will be discussing our fiscal year 2022 second quarter results, which we announced prior to the market open this morning. On the call today with me are Steve Ehrlich, our Chief Executive Officer, and Evan Seropoulos, our Chief Financial Officer.
Thank you operator, I'd like to welcome everyone to Voyager digital Limited's earnings call today, we will be discussing our fiscal year 2022 second quarter results, which we announced prior to the market open. This morning on the call today with me are Steve <unk>, Our Chief Executive Officer, and <unk>, Our Chief Financial Officer.
Speaker 2: I would like to take a moment to direct investors to the investor relations section of our website at investvoyager.com where we have posted our investor presentation and upcoming events and socioeconomic MAD's on Sharks Live!
I would like to take a moment to direct investors to the Investor Relations section of our website at invest Voyager Dot com, where we have posted our investor presentation, an upcoming event schedule.
Speaker 2: Before we get started, I want to remind everyone that certain statements discussed on this call are based on information as of today, February 15th, and may contain forward-looking statements which are subject to risks and uncertainties, and given our limited operating history, market volatility, and unprecedented industry growth, trends could materially deviate from today's levels.
Before we get started I want to remind everyone that certain statements discussed on this call are based on information as of today February 15th and May contain forward looking statements, which are subject to risks and uncertainties and given our.
Limited operating history market volatility and unprecedented industry growth trends could materially deviate from today's levels.
Speaker 2: Actual results could differ materially from our forward-looking statements if any of our key assumptions discussed in today's earnings press release and The comments made during this conference call or in our latest reports and cedar filings each of which can be found on our website www.investvoyager.com
Actual results could differ materially from our forward looking statements if any of our key assumptions discussed in today's earnings press release and the comments made during this conference call or in our latest reports and SEDAR filings each of which can be found on our website www dot invest Voyager dot com.
Speaker 2: or under our profile at www.cedar.com are incorrect.
We're under our profile at Www Dot SEDAR Dot com are incorrect. The company has made assumptions that no significant events occur outside of the company's normal course of business in that current trends in adoption of crypto assets continue.
Speaker 2: The company has made assumptions that no significant events occur outside of the company's normal course of business and that current trends in adoption of crypto assets continue.
Speaker 2: Listeners are cautioned that assets on platform, revenues, and trading volumes fluctuate and may increase and decrease from time to time and 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. Today's release also includes references to non-IFRS financial measures.
Listen listeners are cautioned that assets on platform revenues and trading volumes fluctuate EMEA increase and decrease from time to time and as 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. Todays release also includes references to non <unk>.
<unk> financial measures.
Speaker 2: You should refer to the information contained in the disclosures found in today's release, including definitional information and reconciliations of historical non-IFRS measures to the comparable IFRS financial measures.
You should refer to the information contained in the disclosures found in today's release, including definitional information and reconciliations of historical non <unk> measures to the comparable <unk> financial measures.
Speaker 2: This call will touch on some guidance provided in our earnings press release issued today. I would encourage each of you to review the forward-looking statement, risk factor disclosure, and similar disclosures in today's press release. Please note the dollar amounts referenced are in US dollars unless otherwise noted. With that, let me turn the call over to Steve Ehrlich, Voyage's co-founder and CEO .
This call will touch on some guidance provided in our earnings press release issued today I would encourage each of you to review the forward looking statement risk factor disclosure and similar disclosures in today's press release. Please note that dollar amounts referenced are in U S dollars unless otherwise noted with that let me turn the call over to Steve Ehrlich voyages.
Co founder and CEO .
Speaker 3: Thank you Mike and good morning everyone. I'm excited to report our best quarter ever. Doubling our revenue from the previous quarter and highlighting Voyager's positioning and revenue opportunity in active market.
Yes.
Thank you, Mike and good morning, everyone I'm excited to report our best quarter ever doubling our revenue from the previous quarter, and highlighting voyages positioning and revenue opportunity in active markets.
Speaker 3: More importantly, during the quarter, we delivered significant revenue growth while scaling our systems to more seamlessly support a significant increase in customer activity, highlighting the steps we've taken to build out the scale and security of the Voyager platform in 2021, as we position Voyager for substantial product rollouts in calendar 2022.
More importantly, during the quarter, we delivered significant revenue growth, while scaling our systems to more seamlessly support a significant increase in customer activity.
Highlighting the steps we've taken to build out the scale and security of the Voip platform in 2021, as we position Voyager for substantial product Rollouts in calendar 2022.
Speaker 3: First, I want to take a moment and focus on the notable accomplishments in calendar 2021 and then discuss our plan for 2022.
First I want to take a moment and focus on the notable accomplishments in calendar 2021, and then discuss our plan for 2022.
Speaker 3: We started the 2021 calendar year with an innovative platform embraced by early adopters, fueled by word of mouth from people seeking a trusted app for easily trading a large selection of altcoins.
We started the 2021 calendar year with an innovative platform embraced by early adopters fueled by word of mouth from people seeking a trusted app for easily trading a large selection of all clients.
Speaker 3: At the time, Voyager had 38 employees, 43,000 funded accounts, and approximately 230 million of assets on platform. But we had the goal of becoming one of the leading crypto platforms in the United States. As the industry grew and Voyager was discovered by more crypto market participants, we raised the capital to scale our platform and fuel our growth.
At the time Voyager had 38 employees 43 funded accounts and approximately $230 million of assets on platform.
But we had the goal of becoming one of the leading crypto platforms in the United States as the industry grew and Voyager was discovered by more crypto market participants, we raised the capital to scale, our platform and fuel our growth.
Speaker 3: By the end of calendar 2021, we had 250 employees, 3.2 million verified users, and 1,074 million funded accounts with over 5.9 billion of assets on platform.
By the end of calendar 2021, we have 250 employees $3 2 million verified users and 1 million seven 1 million $74 million funded accounts with over five 9 billion of assets on platform.
Speaker 3: This level of growth makes Voyager one of the fastest growing cryptocurrency platforms in the industry and one of the largest
This level of growth mixed Voyager one of the fastest growing crypto currency platforms in the industry.
And one of the largest in the United States.
Speaker 3: Based on data obtained from one of our investment banking partners, Voyager was third on the list of fastest-growing public companies listed on any U.S. exchange, including the OTC markets, based on revenue growth in calendar 2021, with $416 million of revenue up from just $6.6 million for the calendar year 2020.
Based on data obtained from one of our investment banking partners Voyager was third on the list of fastest growing public companies listed on any U S exchange, including the OTC markets based on revenue growth in calendar 2021 with $416 million of revenue upfront.
Up from just $6 6 million for the calendar year 2020.
Speaker 3: To keep pace with our rapid growth, we spent 2021 scaling our system.
To keep pace with our rapid growth, we spent 2021 scaling our system.
Speaker 3: From the initial influx of customers in January 2021, the decisions we made focused on scaling to handle the increases in volume. In the December quarter, we reached new heights of activity that tested the system. And I'm happy to report that we had no delays or outages.
From the initial influx of customers in January 2021, the decisions, we made focused on scaling to handle the increases in volume in the December quarter, We reached new heights of activity that tested the system and I am happy to report that we had no delays or outages.
Speaker 3: Our significant scaling in 2021 included notable growth of our engineering and product departments.
Our significant scaling in 2021 included note included notable growth of our engineering and product departments.
Speaker 3: positioning us to execute and deliver what we believe to be both innovative and customer focused product enhancement and features for 2022.
<unk> us to execute and deliver what we believe to be both innovative and customer focused product enhancement and features for 2022.
Speaker 3: Before I review our business strategy for 2022, I would like to address the industry cycles we witnessed in 2021 and our viewpoints on industry growth going forward as mainstream adoption and blockchain efficiency proliferate in the coming years.
Before I review, our business strategy for 2022, I would like to address the industry cycles, we witnessed in 2021 and our viewpoints on industry growth going forward as mainstream adoption of blockchain efficiency proliferate in the coming years.
Speaker 3: The crypto industry is one in which there are tremendous ebbs and flows. But as revealed by our recent survey, 66% of Americans believe that crypto will be widely accepted and grow in value over the next five years.
The crypto industry is one in which there are tremendous ebbs and flows but has revealed by a recent survey 66% of Americans believed that crypto will be widely accepted and grow in value over the next five years.
Speaker 3: We are therefore excited about the future and fueled by investment in our marketing efforts, we will continue to grow Voyage as one of the major players in digital assets in the blockchain industry.
We are therefore excited about the future and fueled by investment in our marketing efforts. We will continue to grow voyage is one of the major players in digital assets and the blockchain industry.
Speaker 3: We're investing heavily in revenue diversification as we look to reduce our reliance on trading volume.
We're investing heavily and revenue diversification as we look to reduce our alliance on trading volume.
Speaker 3: Voyager's goal is to build a business with multiple revenue streams through its current trading products, yield and staking products, payment and spending products, and future NFT and lending products.
<unk> goal is to build a business with multiple revenue streams through its current trading products, yielding staking products payment and spending products and future and ft and lending products.
Speaker 3: To accomplish our goals, we've organized our product and engineering teams into pods working on specific products and product enhancements.
To accomplish our goals, we have organized our product and engineering teams into pods working on specific products and product enhancements.
Speaker 3: Focusing on product development, the expanded leadership team studied data to better align business goals with customer needs.
Focusing on product development. The expanded leadership team studied data to better align business goals with customer needs. We.
Speaker 3: We are a product delivery organization and have taken the necessary steps towards matching the needs of our customers with our product delivery goals.
We are our product delivery organization and have taken the necessary steps towards matching the needs of our customers with our product delivery goals.
Transactional revenue is a key driver of the business we.
Speaker 3: We recently added 10 new coins with crypto wallets for trading and crypto transfers, bringing our total up to 85 coins, of which we have 52 of them with crypto wallets.
We recently added 10, new coins with crypto wallets for trading encrypt our transfer is bringing our total up to 85 points of which we have 52 of them with crypto wallets.
Speaker 3: The large number of crypto wallets is significant, as while other notable players in the industry have no or very limited wallets, we allow our customers to hold their own assets and transfer them.
The large number of crypto wallets is significant as well other notable players in the industry have no or very limited wallets, we allow our customers to hold their own assets and transfer them.
Speaker 3: We have plans to trade over 100 coins in the near future and add even more crypto wallets.
We have plans to trade over 100 coins in the near future and add even more crypto wallets.
Speaker 3: Getting more wallets is a key area of development for us as the crypto ecosystem continues to grow. The ability to transfer these tokens, especially in the gaming space, is becoming necessary.
Adding more wallets is a key area of development for us as the crypto ecosystem continues to grow the.
The ability to transfer these tokens, especially in the gaming space is becoming necessary.
Speaker 3: When we add new coins, we tend to see an increase in customer engagement and an increase in trading.
When we add new clients, we tend to see an increase in customer engagement and an increase in trading.
Speaker 3: In addition to new coins and wallets, we are working on trading features and enhancements. Our near-term roadmap includes a desktop version of the app, a dark moon mode to the mobile app, stop orders, dynamic and tiered pricing, and swap functionality with the expectation that desktop and dark mode will be rolled out in the March quarter.
In addition to new points and wallets, we are working on trading features and enhancements are near term roadmap includes a desktop version of the App, a dark moon mode to the mobile App stop orders dynamic and tiered pricing and swap functionality with the expectation that desktop and dark mode will be rolled out in the March quarter.
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Speaker 3: Voyager continues to focus on staking enhancements. We added additional custodians which are necessary to expand the coins for staking. As the number of coins available for staking increases, staking revenue will continue to grow and the expectation that it will become a larger and larger part of our overall revenue.
Voyager continues to focus on staking enhancements, we added additional custodians, which are necessary to expand the coins for staking as.
As the number of points available for staking increases staking revenue will continue to grow and the expectation that it will become a larger and larger part of our overall revenue.
Speaker 3: On the lending side, the addition of Alameda Research along with a few other borrowers has increased our capacity and capabilities.
On the lending side. The addition of <unk> research along with a few other borrowers has increased our capacity and capabilities.
Speaker 3: Based on current market prices, we continue to target a minimum of $40 million in yield and staking revenue per quarter. And subject to the crypto markets, expect that to grow as we add more coins.
Based on current market prices, we continue to target a minimum of $40 million in yield and staking revenue per quarter and subject to the crypto markets expect that to grow as we add more points.
Speaker 3: We recently rolled out the debit card to a small group of employees for real-world testing.
We recently rolled out the debit card to a small group of employees for real World testing.
Speaker 3: So far, the results are very exciting, and we expect to increase the number of users in the March quarter.
So far the results are very exciting and when do you expect to increase the number of users in the March quarter.
Speaker 3: The debit card is unique in nature by providing up to 9% annual rewards and is based on holding USDC, not fiat currency.
The debit card is unique in nature by providing up to 9% annual rewards and is based on holding USB C not Fiat currency.
Speaker 3: The card has a bank routing number and an account number so individuals can direct deposit their paycheck and utilize it in place of a bank account.
The card has a bank routing number and an account number so individuals can direct deposit their paycheck and utilize it in place of a bank account.
Speaker 3: We also anticipate allowing consumers early access to their paychecks, similar to many of the neobanks.
We also anticipate allowing consumers early access to their paycheck similar to many of the neo banks.
Speaker 3: We have yet to fully execute our marketing plan for the debit card, but already have a waiting list of approximately 200,000 people.
We have yet to fully execute our marketing plan for debit card, but already have a waiting list of approximately 200000 people.
Speaker 3: The product will also be connected to the Voyager loyalty program, which is also in the process of being expanded, and we envision adding broader consumer awards from popular merchants as well. The plan is for Voyager to earn revenue from the interchange and rewards from merchants.
The product will also be connected to the Voyager loyalty program, which is also in the process of being expanded and we envision adding broader consumer awards from popular merchants as well. The plan is for Voyager to earn revenue from the interchange and rewards for merchants.
Speaker 3: As we mentioned in the last earnings call, we received our fit and proper license from the AMF, the Authority of Financial Markets in France. We are progressing and delivering a crypto solution to French citizens as well as other parts of Europe in 2022.
As we mentioned in our last earnings call, we received our fit and proper license from the MF The authority of financial markets in France, we are progressing in delivering a crypto solutions to French citizens as well as other parts of Europe in 2022.
Speaker 3: As the AMF approved Voyager to deliver the product as it looks today in the U.S., we can bring the benefits of the Voyager platform to the European audience.
As the IMF approved Voyager to deliver the product as it looks today in the U S. We can bring the benefits of the Voyager platform to the European audience. There is a waitlist for Europe already and by utilizing the recently acquired quantify or Theyre Ky and money movement features we intend to make an impact in the second half of 2022.
Speaker 3: There is a wait list for Europe already, and by utilizing the recently acquired Coinify and their KYC and money movement features, we intend to make an impact in the second half of 2022.
Speaker 3: In Canada, we are working closely with the Ontario Securities Commission to deliver the Voyager offering to Canadian residents as well. We will keep investors updated as we learn more from the OSA.
In Canada, we are working closely with the Ontario Securities Commission to deliver the Voyager offering to Canadian residents as well.
We will keep investors updated as we learn more from the OSA.
Speaker 3: Our partnership with Market Rebellion to build an equity broker-dealer is progressing nicely.
Our partnership with market rebellion to build an equity broker dealers progressing nicely.
Speaker 3: Not only do we have FINRA approval, we have a signed clearing agreement.
Not only do we have FINRA approval, we have assigned clearing agreement.
Speaker 3: The clearing agreement is a necessary step in building the brokerage of the future as we leverage the clearing firm technology to deliver an equity trading offering.
The clearing agreement is a necessary step in building the brokerage of the future as we leverage the clearing firm technology to deliver an equity trading offering.
Speaker 3: Voyager will earn revenue on this partnership by keeping a piece of the revenue from customer balances and transactions.
Voyager <unk> earned revenue on this partnership by keeping a piece of the revenue from customer balances in transactions.
Speaker 3: We will structure this offering so consumers will access the trading of equities from their existing Voyager app and will utilize USDC as a base currency for trading.
We will structure this offerings for consumers will accept the trading of equities from their existing Voyager app and will utilize <unk> as a base currency for trading.
Speaker 3: We believe these innovative features are advantageous and the delivery of the debit card is a key step forward for this product.
We believe these innovative features are advantageous and the delivery of the debit card is a key step forward for this product.
Speaker 3: The Quantified Payment business is an area of focus as we recently hired enterprise sales veteran Tim Mund to lead our U.S. sales team. We believe that the payment business is a long-tail business, but we are growing the use of our rails and systems as these rails allow businesses and individuals to make payments within the Voyager ecosystem without any blockchain fees.
The quantified payment business is an area of focus as we recently hired enterprise sales veteran Tim month to lead our U S sales team.
We believe that the payment business is a long tail business, but we are growing that growing the use of our rail systems as these rails allow businesses and individuals to make payments within the Voyager ecosystem without any blockchain fees.
Speaker 3: Additionally, the payment system allows any payment service system or vendor to receive crypto as payments outside of the Voyager ecosystem, which has lower rates than the traditional system.
Additionally, the payment system allows any payment service system, our vendor to receive crypto as payments outside of the Voyager ecosystem, which has lower rates than the traditional system.
Speaker 3: Lastly, watching how the NFT business continues to grow, we hired a team to develop Voyager's NFT strategy. In line with our overall value proposition, Voyager plans to make it easier to access the NFT ecosystem by helping customers interact with, organize, and extract value from their NFT portfolio.
Lastly, watching how the NFC business continues to grow we hired a team to develop voyagers NFC strategy.
In line with our overall value proposition Voyager plans to make it easier to access the NFC ecosystem by helping customers interact with organized and extract value from their NFC portfolio.
Speaker 3: Our goal is to simplify NFT participation today and in the future, regardless of how the culture and ecosystem evolves. We plan to design products that will enable consumers to react quickly to market changes and safely manage their portfolio.
Our goal is to simplify NFC participation today and in the future regardless of how the culture and ecosystem evolves. We plan to design products that will enable consumers to react quickly to market changes and safely manage their portfolio.
Speaker 3: We will continue to focus on use growth as our primary marketing objective and to educate users about the benefits of digital assets and use cases where investors can participate into wealth building opportunities available on the Voyager platform.
We will continue to focus on user growth as our primary marketing objectives and to educate users about the benefits of digital assets and use cases, where investors can participate in the wealth building opportunities available on the Voyager platform.
Speaker 3: We are really excited about the launch of our latest campaign, Crypto for All, as it expands upon the growth we saw in the December quarter when we added the Dallas Mavericks, NCA Basketball, and the National Women's Soccer League to our NASCAR partnership with Landon Castle in both the Cup and Xfinity Series.
We are really excited about the launch of our latest campaign crypto for all as it expands upon the growth we saw in the December quarter. When we added the Dallas Mavericks, NCA basketball and the National Women's Soccer League to our NASCAR partnership with landing Castle in both the Cup and Xfinity series.
Speaker 3: We continue to be the third highest ranked pure crypto app in the Apple App Store and strive to gain traction versus the two larger companies ahead of us. We will continue to focus on differentiation and value creation through our existing and future marketing channels.
We continue to be the third highest ranked pure crypto app in the Apple App store and strive to gain traction versus the two larger companies ahead of us.
We will continue to focus on differentiation and value creation through our existing and future marketing channels.
Speaker 3: We're striving to scale and improve customer support and continue to add personnel to the team. We have also focused on engineering teams on how to better support our customers and anticipate adding live chat towards this existing chat by the end of the March quarter.
We are striving to scale and improve customer support and continue to add personnel to the team we.
We are also focused on engineering teams on how to better support our customers and anticipate adding live chat towards this existing chat by the end of the March quarter.
Speaker 3: One of Voyager's organizational objectives is maintaining transparency and accountability with customers, constituents, investors, and employees. To support this objective, Voyager will begin its first SOC 2 audit in June 2022 and will continue annually thereafter.
One of the voyages organizational objectives is maintaining transparency and accountability with customers constituents investors and employees to.
To support this objective Voyager will begin its first soft to audit in June 2022, and will continue annually thereafter.
Speaker 3: The SOC 2 is a critical element to Voyager's continued achievement of best-in-class service and product offerings as SOC 2 provides assurance that a mature, sustainable security program has been implemented, protecting all stakeholders' assets from unauthorized access.
The stock too is a critical element to voyages continued achievement of best in class service and product offerings as Sark to provides assurance that a mature sustainable security program has been implemented protecting all stakeholders assets from unauthorized access.
Speaker 3: Additionally, completing a SOC 2 audit will differentiate Voyager from competitors by clearing a path to increased partnership opportunities and additional highly accredited organizations.
Additionally, completing a sock to audit will.
Differentiate voyager from competitors by clearing a path to increase partnership opportunities.
And additional highly accredited organizations.
Speaker 3: Lastly, we want to address the recent news about the SEC order in the matter of BlockFi lending LLC.
Lastly, we wanted to address the recent news about the SEC order on the matter of block five lending L. L C.
Speaker 3: We recognize that this is a significant development in the industry and will provide a potential regulatory path for market participants.
We recognize that this is a significant development in the industry and will provide a potential.
Potential regulatory path for market participants.
Speaker 3: We also understand that some may view Voyager's rewards program to be similar to BlockFi interest accounts.
We also understand that some may view voyages rewards program to be similar to block Fi interest accounts.
Speaker 3: While we understand the temptation to bucket them together, we think there are important differences between Voyager's program and BlockFi's that we think have legal significance. That said, we are on ongoing discussions with regulators about the rewards program, and it is, of course, possible that regulators may have a different view. Under the circumstances, we think it's important to confirm that Voyager has received requests and subpoenas from the SEC and certain states in connection with the rewards program as part of non-public fact-finding inquiries.
While we understand the temptation to bucket them together, we think there are important differences between voyages program in <unk> that we think have legal significance that said we are in ongoing discussions with regulators about the award rewards program and it is of course possible that regulators may have a different view.
Under the circumstances, we think it is important to confirm that Voyager has received requests and subpoenas from the SEC and certain states in connection with the rewards program as part of Nonpublic fact, finding inquiries.
Speaker 3: Of course, we believe that Voyager accounts that earn rewards comply with existing U.S. law and look forward to demonstrating that as necessary.
Of course, we believe that Voyager accounts that earn rewards comply with existing U S law and look forward to demonstrating that as necessary.
Speaker 3: We think it is normal and appropriate for financial service firms, especially in the crypto industry, with its evolving regulatory framework, to receive inquiries from regulators and law enforcement.
We think it is normal and appropriate for financial service firms, especially in the crypto industry with its evolving regulatory framework to receive inquiries from regulators and law enforcement.
Speaker 3: When Voyager receives such requests, our policy is to cooperate fully, but we limit public discussion. These matters are always evolving, and as a public company, Voyager is subject to important rules regarding disclosures about its business. I want to make it clear that Voyager strives for overall compliance as a team of legal and compliance professionals and outside advisors working hard to help us operate within the rules that they exist today.
When Voyager receive such requests our policy our policy is to cooperate fully but we limit public discussion of these matters are always evolving and as a public company Voyager is subject to important roles regarding disclosures about its business I want to make it clear that Voyager strives for overall compliance and his team of legal and compliance professional.
<unk> and outside advisors working hard to help us operate within the rules that they exist today.
Speaker 3: In closing, we continue to believe that we are in the early stages of crypto adoption and there is significant opportunity for Voyager to grow users and revenue as we execute our game plan.
In closing we continue to believe that we are in the early stages of crypto adoption and there is significant opportunity for Voyager to grow users and revenue as we execute our game plan.
Speaker 3: We are a group of industry veterans who, having seen 20-plus years of market activity, understand the volatility that markets have. We think that leadership experience positions us to execute and build an industry leader.
We have a group of industry veterans, who haven't seen 20 plus years of market activity understand the volatility that markets have we seen that leadership experience positions us to execute and build an industry leader.
Speaker 3: The crypto market will continue to have its ups and downs, and our revenue and volume will reflect those moments. But we take pride in creating the third largest retail platform in the U.S. based on retail assets on platform and number of funded accounts.
The crypto market will continue to have its ups and downs in our revenue and volume will reflect those moments, but we take pride in creating third largest retail platform in the U S based on retail assets on platform and number of funded accounts.
Speaker 3: I am truly excited about where we are and where we are going. Voyager's business continues to grow every day, and the company's well-positioned become a leading brand in the digital asset space. This truly is an exciting time in the industry.
I am truly excited about where we are and where we're going voyages business continues to grow every day and the company is well positioned become a leading brand in the digital asset space is truly is an exciting time in the industry.
Speaker 3: With that, I'll turn the call over to Evan to review the quarterly financial results in more detail.
With that I'll turn the call over to Evan to review the quarterly financial results in more detail.
Speaker 3: Thank you, Steve, and thank you all for joining us today.
Thank you, Steve and thank you all for joining us today.
Speaker 3: As a reminder, all figures discussed in today's call are in U.S. dollars under IFRS.
As a reminder, all figures discussed on today's call are in U S dollars under <unk>.
Speaker 3: I will speak to our fiscal 2022 second quarter ended December 31, 2021.
I will speak to our fiscal 2022 second quarter ended December 31 2021.
Speaker 3: As Steve highlighted, our second quarter was our strongest ever as our business grew across almost all our key metrics, including volume, customer accounts, net deposits, and all distinct revenue lines.
As Steve highlighted our second quarter was our strongest ever.
Our business grew across almost all our key metrics, including volume customer accounts net deposits in all distinct revenue lines.
Speaker 3: As volume in funded accounts grew, so did our assets on platform, increasing from $4.4 billion in the September quarter to $5.9 billion at the end of the December quarter, with approximately $1 billion in net new deposits, making up the majority of the $1.4 billion increase.
As volume and funded accounts grew sales in our assets on platform <unk>.
Increasing from $4 4 billion in the September quarter to $5 9 billion at the end of the December quarter.
With approximately $1 billion in net new deposits, making up the majority of the $1 4 billion increase.
Speaker 3: Total revenue for the quarter was $164.8 million, including approximately $86.5 million in transaction revenue and approximately $57 million in lending and staking activity.
Total revenue for the quarter was $164 8 million, including approximately $86 5 million in transaction revenue and approximately $57 million in lending and staking activities.
Speaker 3: As I discussed in our last call, revenue from lending and staking activities was a priority for us and exceeded the target of $50 million we previously provided.
As I discussed on our last call revenue from lending and staking activities was a priority for us and exceeded the target of $50 million. We previously provided.
Speaker 3: Despite some of the rates decreasing overall, we were able to surpass our expectations with an overall increase in assets available to earn yields on.
Despite some of the rates decreasing.
Overall, we were able to surpass our expectations with an overall increase in assets available to earn yield on.
Speaker 3: due to our increased net deposits as well as an increase in our staking activities as we are now earning staking revenue across 11 coins.
Due to our increased net deposits as well as an increase in our staking activities. As we are now earnings taking revenue across 11 coins.
Yes.
Speaker 3: Looking at some of our unit economics, average revenue per user was particularly strong at $57 for the December .
Looking at some of our unit economics average revenue per user was particularly strong at $57.
For the December quarter.
While our economy.
Speaker 3: can increase to approximately 160 for the quarter. We believe that payback period continues to be very compelling at just under three months.
And increased to approximately $1 60 for the quarter.
We believe that payback period continues to be very compelling at just under three months.
On expenses, we continue to invest heavily in marketing as evidenced by our higher customer acquisition costs.
Speaker 3: Marketing expenses more than doubled from approximately 17 million in the September quarter to more than 35 million
Marketing expenses more than doubled from approximately $17 million in the September quarter to more than $35 million in.
Speaker 3: sorry, $17 million in the September quarter to more than $35 million in the December quarter.
Yes, hi.
<unk> mined in the September quarter to more than $35 million in the December quarter.
Speaker 3: We continue to invest more heavily in our digital advertising spend as a top 50 app and also establish several long-term sponsorship programs such as the Dallas Mavericks and the National Women's Soccer League.
We continue to invest more heavily in our digital advertising spend as a top 50 App and also established several long term sponsorship programs such as the Dallas Mavericks in the National Women's Soccer League.
Speaker 3: Additionally, our rewards program continues to be a driving factor of success, and while the overall cost has increased, we have actively managed this cost against our lending and staking activities with a future focus on turning this to a profitable business line.
Additionally, our rewards program continues to be a driving factor of success and while the overall cost has increased we have actively managed this cost against our lending and thinking activities with the future focused on turning this to profitable business line.
Speaker 3: On the adjusted EBITDA basis, we reported $17.4 million for the quarter, a margin of approximately 10.5%.
On an adjusted EBITDA basis, we reported $17 4 million for the quarter.
Our margin of approximately 10, 5%.
Speaker 3: Again, as previously discussed, we are comfortable with this current level of profitability as we look to prioritize accelerating growth in funded accounts and deposits.
Again as previously discussed we are comfortable with this current level of profitability as we look to prioritize accelerating growth in funded accounts and deposits.
Speaker 3: The beginning of 2022 has led to lower market volumes, although we have recently seen a slight uptick in volume.
At the beginning of 2022 and led to lower market volumes, although we have recently seen a slight uptick in volume.
Speaker 3: The diversification of our revenue is leading us to believe that even in times of lower market activity and lower crypto prices, our minimum quarterly revenue will exceed
The diversification of our revenue is leading us to believe that even in times of lower market activity and lower crypto prices, our minimum quarterly revenue.
We will exceed $100 million.
Speaker 3: The increased revenue diversification strategy and product roadmap will only increase the minimum floor, as will increased volumes and market price.
The increased revenue diversification strategy and product roadmap will only increase the minimum floor and will increase volumes and market prices.
Speaker 3: This concludes our prepared remarks. With that, I will now turn it over to our operator who will open the line for questions.
This concludes our prepared remarks with that I will now turn it over to our operator, who will open the line for questions.
Speaker 1: at this time. If you would like to ask a question, please press star 1 on your touchtone phone.
And at this time, if you would like to ask a question. Please press star one on your Touchtone phone.
Speaker 1: We'll take our first question from Chris Allen with Compass Point. Please go ahead, your line is open.
We will take our first question from Chris Allen with Compass point. Please go ahead. Your line is open.
Speaker 4: Morning, everyone. Thanks for taking my questions. Maybe we can just start off just on the rewards paid to customers. You noted that lending and staking revenues have been increasing, some positive trends there, and looking to close that gap. Maybe any color in terms of the time frame, in terms of when you can close that gap and turn that profitable, and whether there's further opportunities to build out staking from here moving forward.
Good morning, everyone. Thank you.
Taking my questions.
Just maybe to start off just on the rewards period to customers you noted the lending and sticky revenue has been increasing some positive trends there and we will close.
Close to that maybe any color in terms of the timeframe in terms of when you can close the gap or turn that turn that profitable.
And whether there's further opportunities to build out stinking from here moving forward.
Speaker 5: Thanks for the question, Chris, and thanks for joining us this morning. We don't have a time frame on it. It's part of...
Thanks for the question, Chris and thanks for joining us this morning.
We don't have a timeframe on it it's part of an.
Speaker 5: An ongoing effort to increase the staking, there are certain coins, I'll take Avalanche for one, and we have a deep partnership with Avalanche that we're building to their nodes and working with our custodians to make sure that we can stake.
And ongoing effort to increase the staking their certain coins I'll take avalanche for one and we have a deep partnership with Avalanche that we're building to their nodes and working with our custodians to make sure that we can stake hopefully that comes we finished up sooner rather than later and that'll be a substantial increase.
Speaker 5: Hopefully that comes, we finish that sooner rather than later, and that'll be a substantial increase in revenue for us on that too. So it's just a matter, as we keep increasing the custodians we have and
And revenue for us on that too. So it's just a matter as we keep increasing the custodians, we have and working on with them on the nodes increasing it theres no set timeframe, but we're we believe in 2022 at some point.
Speaker 5: working on with them on the nodes, increasing it. There's no set time frame, but we're we believe in 2022 at some point.
Got it.
Speaker 4: And maybe just some additional color on the current environment. Helpful that you provide the minimum revenue base moving forward on expectations around that.
And maybe just some additional color.
On the current environment.
Helpful that you provide the minimum revenue base moving forward or expectations around that.
Speaker 4: Account growth obviously was very strong in the December quarter and conversion to funded accounts seemed pretty solid. How have account growth trends been so far in 2022 and what's a bit of a more challenging backdrop and have you seen consistency in converting verified accounts to funded accounts in the current environment?
Account growth obviously was.
Very strong in the December quarter and conversion the funded accounts seems pretty solid.
<unk> growth trends have been so far in 2022, and what's a bit of a more challenging backdrop.
<unk> seen consistency in converting verified accounts under the talents.
In the current environment.
Speaker 5: We have seen, you know, consistent account growth in the quarter.
We have seen consistent account growth in the quarter.
Speaker 5: So we will continue to see that as the marketing, and it is becoming a little bit more challenging. I think you can, market volumes are lower in the quarter, as Evan noted. But we're still seeing those accounts open, and we believe.
So we will continue to see that as the marketing and it is becoming a little bit more challenging I think you can market volumes are lower in the quarter.
As Evan noted.
But we're still seeing those accounts open and we believe.
Speaker 5: that with the debit card coming, we will, you know, increase the conversion ratio from verified users to funded as well. There's a lot of interest in people using digital assets in USDC and the way we've structured the debit card. So, you know, continued account growth, we think will increase that percentage between funded as a verified and continue to grow the business, even in a market that's a little bit challenging.
That with the debit card coming.
We will.
Increase the conversion ratio from verified users to funded as well.
There's a lot of interest in people using digital assets and USB C and the way we've structured the debit card so continued.
Continued account growth, we think will increase that percentage between.
Funded as a verified.
Continue to grow the business, even in a market that's a little bit challenging.
Okay. Thanks, guys I'll get back in the queue.
Okay.
Speaker 1: And we'll take our next question from Adhika Deve with 8 Capital. Please go ahead.
And we will take our next question from <unk> with eight capital. Please go ahead.
Speaker 6: Good morning, guys. Thanks for taking my questions here. Just in terms of the debit card program, I know you said you rolled it out to a select few employees and then there's a chance to grow it past that, but from those select few employees, maybe can you talk about some of the learnings from that? I think, you know, the reason I ask is because I think Visa reported that they saw, you know, $2.5 billion in transaction volumes with crypto-linked cards, so clearly very strong demand for that type of product. But I was wondering if you can just touch on, you know,
Good morning, guys. Thanks for taking my questions here just in terms of the debit card program. I know you said you rolled it out to a select few employees and then there is a chance to grow it past that.
Select select few employees, maybe can you talk about some of the learnings from that I think.
The reason I ask is because I think visa reported that they saw.
$5 billion in transaction volumes with crypto link card. So clearly very strong demand for that type of product, but I was wondering if you can just touch on.
Speaker 6: What you've learned from these employees and what you can what enhancements you're going to make prior to the the broader world?
What you've learned from these employees and what you can what enhancements you're going to make prior to the broader rollout.
Speaker 5: Yeah, the early adoption and I was one of them and we did a Twitter.
Yes, the early adoption and I was one of them and we did a Twitter.
Speaker 5: social posting on that and got a tremendous amount of views. It shows the excitement that we have for it.
Social posting on that and got a tremendous amount of views that shows the excitement that we have for it.
Speaker 5: You know, it's all about what we're working on on the back end of it, like make sure everything goes through, everything flows through, the proper reporting is necessary, canceling things. Those are all the testing we're going through with all the employees.
Yes, it's all about what we're working on on the backend of it like make sure everything goes through everything flows through the proper reporting as necessary cancelling things those are all the testing we're going through with all the employees.
Speaker 5: And everything seems to be going great and as that continues to be tested.
And everything seems to be going great.
And as that continues to be tested we will continue to roll it out to that 200000 group and I will just take some time to do that we're not going to be foolish and rose 200000 out in a week, we're going to do that.
Speaker 5: We'll continue to roll it out to that 200,000 group, and it'll just take, you know, some time to do that. We're not going to.
Speaker 5: be foolish and roll $200,000 out in a week, you know, we're going to do that.
Speaker 5: over time to make sure that we could support those customers as they come on. So specific learnings I'm not going to disclose, but I'll tell you the back end of what we're working on has been very, very good, better than anticipated.
Over time to make sure that we could support those customers as they come on so specific learnings I'm not going to disclose but I'll tell you. The back end of what we're working on has been very very good.
Better than anticipated.
Speaker 6: Perfect, thank you. And then just maybe from, you know, a user characteristics point of view, the new users that you are getting on the platform, do you see that they've kind of changed from six months ago? Are they depositing more on the platform, you know, bringing in more funds from other platforms? Any colour you can provide on maybe the cohort of these new users versus past users?
Perfect. Thank you and then just maybe from a user characteristics.
Point of view the new users that you are getting on the platform do you see that they've kind of changed from six months ago, I think depositing more on the platform.
Bringing in more funds from other platform any any color you can provide on maybe the cohort of these these new users versus asks users.
Speaker 5: Yeah, I'll tell you this, that you know, I've always said this, the first 500,000 users won't equal and won't look like the next 500,000, which won't look like the next 500,000. We're getting
Yes ill tell you this that I.
I've always said this the first 500000 users won't equal and won't look like the next $500 and which won't look like the next 500000, we're getting continued deposits from existing customers and they always start small they always come in and they put a little bit in and remember are our initial funding limit for every customer is only 10.
Speaker 5: continued deposits from existing customers, and they always start small. They always come in and they put a little bit in. And remember, our initial funding limit for every customer is only $10,000. And when they get comfortable, they see they can use their money right away, they can get it out, you know, they start increasing more. But it's a longer, you know, time frame here that we expect is that people will start coming in with
And when they get comfortable they see they can use their money right away. They can get it out they start increasing more but it's it's a longer.
Timeframe here that we expect is that people will start coming in with a couple of thousand keep building on top of that and that's what we're seeing is continued deposits from consumers over time.
Speaker 5: a couple thousand and keep building on top of that and that's what we're seeing is continued deposits from consumers over time.
Speaker 5: And so we, you know, it's just a trend. I think people want to get comfortable, especially when you're getting some new people into crypto. They want to make sure that they can access the funds and then add more.
And so.
It's just the trend I think people want to get comfortable, especially when you are getting some new people into crypto they want to make sure that they can access the funds.
And then they will add more.
Speaker 6: Perfect. And then maybe just one last one from me and then I'll pass the line. I saw that you guys, you appointed a new head of corporate development. Can you maybe tell us, do you think you'll be more active on M&A or continue to be active on M&A and maybe in what capacity?
Perfect and then maybe just one last one from me and I'll pass the line.
You don't view you appointed a new head of corporate development can you maybe tell US do you think youll be more active on M&A or continue to be active on M&A and maybe in what capacity.
Speaker 5: Yeah, we hired Marshall Jensen as our head of corporate development. We see a lot of things cross our desk. A lot of bankers bring us a lot of opportunities. We're also out in the market scanning projects, products that might fit what we're trying to do, those that have significant customers. We believe we'll be more active. We've got to find the right fit from a number of customers.
Yes, we hired Marshall Janssen as our head of corporate development, we see a lot of things across our desk.
A lot of bankers bring us a lot of opportunities. We're also out in the market scanning projects products that might fit what we're trying to do those that have significant customers.
We believe we will be more active we have got to find the right fit.
From number of customers from culture of that company.
Speaker 5: from culture of that company, growth and what opportunity. So there's a lot of things we could look at and we're gonna continue to look at. And when we find the right.
Growth and what opportunity. So there's a lot of a lot of things. We can look at and we're going to continue to look at and when we find the right fit will acquire but that said we've been pretty active in four years I think we've done four acquisitions, that's pretty good for.
Speaker 5: fit will acquire. But that said, we've been pretty active in four years. I think we've done four acquisitions. That's pretty good for a really young company. And we fill gaps, right? I mean, I think when, you know, with the acquisitions we have done.
A really young company and we fill gaps right I mean, I think when with the acquisitions, we've done whether it was the ethos acquisition and we got all our IP that allows us to do the crypto transfers to the latest being quantified where now we have payment rails that are helping us accelerate the European expansion, we're going to find things that fit us.
Speaker 5: whether it was the Ethos acquisition and we got all our IP that allows us to do the crypto transfers to the latest being Coinify, where now we have payment rails that are helping us accelerate the European expansion, we're going to find things that fit us and fit us from a cultural perspective. So and thanks, Ed, here for joining us this morning. Thank you, guys.
Fit us from a cultural perspective, so and thanks for joining us this morning.
Well. Thank you guys appreciate all the color I'll pass the line.
Speaker 1: We'll take our next question from George Sutton with Greg Holm. Please go ahead, your line is open.
We will take our next question from George Sutton with Craig Hallum. Please go ahead. Your line is now open.
Speaker 4: Thank you. I was just wondering if you could discuss your willingness to let the CAC grow over time relative to payback periods. I say that obviously in the context of larger competitors out there. But I'm wondering how this might change with a broadened portfolio including the debit card.
Thank you.
Wondering if you could discuss your willingness to let the CAC grow overtime relative to payback periods I would say that obviously in the context of larger competitors out there.
But I'm wondering how this might change with a broadened portfolio, including the debit card.
Speaker 5: Well, thanks, George. Thanks again for joining us today. Look, I think CAC will grow over time here, especially to...
Well, thanks, George Thanks, again for joining us today.
Look I think <unk> will grow over time here.
<unk> two.
Speaker 5: what you referred to in the competitive landscape.
Which you referred to in the competitive landscape.
Speaker 5: You know, it is getting more competitive, so you'll see it grow, and the timeframe will probably expand for us, too. And we're fine with that. We think it will definitely grow. And the other thing, just to add to that, George, is as we deliver more products and add to it, our average revenue per user should expand, too, so the payback will work in that favor as well. Yeah, that's part of the strategy of debit card, to your question. On the debit card, bringing that will bring more assets.
Yes, it is getting more competitive.
So youll see it grow and the timeframe will probably expand for us too and we're fine with that we think it will.
We will definitely grow.
The other thing just to add to that.
Georges as we deliver more product and add to it our average revenue per user should expand too. So the payback will work in their favor as well, yes. That's part of the strategy of debit cards to your question on the debit card, bringing that will bring more assets.
Speaker 5: that consumers will hold with us. We're seeing a lot of people already saying they're going to eliminate their bank and come use Voyager as their bank. And so that's one product. Then the equity trading, then the credit products we're going to add, the NFT products, will all expand the ARPU and therefore allow us to get more value out of each customer.
The consumers will hold with us, but we're seeing a lot of people already saying theyre going to eliminate their bank can come by us voyage or is there.
As their bank and so that's one product in the equity trading then the credit products, we're going to add the NFC products will all expand our pool and therefore allow us to get more value out of each customer and bring them bring them more value actually even more importantly, it's not just us getting the value out of us, bringing the value back to the <unk>.
Speaker 5: And bring them more value, actually, even more importantly. It's not just us getting the value out of it. It's bringing the value back to the consumer, where they look to us as one app they want to go to to handle their financial world through digital currencies and digital assets.
<unk>, where they look to us to one out they want to go to to handle their financial world through digital currencies and digital assets.
Speaker 4: I just wanted to say, you had mentioned early that you were pursuing the NFT opportunity. You've given us a little bit of detail. I just wondered if we could get a state of the state relative to your NFT opportunity as you.
Just one other thing you.
You had mentioned early.
Ed you were pursuing NFC opportunity, you've given us a little bit of detail I just wondered if we could get a state of the state relative to euro and a key opportunity as you see it.
Speaker 5: Yeah, we've hired a team strategy and development resources and building it out.
Yes, we've hired a team strategy and development resources and building it out.
<unk>.
Speaker 5: Similar to the way we execute our business for trading in that we connect to multiple places. We believe that there are so many marketplaces out there. Consumers want to be able to access them all and how we deliver that entire environment to them is what we believe is the future of NFTs. It's not just one marketplace. And so we're looking at a solution that encompasses a larger scale all off the Voyager platform.
Similar to the way, we execute our business for trading in that we connect to multiple places. We believe that there are so many marketplaces out there consumers want to be able to access them, all and how we deliver that entire environment to them is what where we believe is the future of Nf <unk>.
It's not just one market place.
So we're looking at a solution that encompasses a larger scale.
All off the Voyager platform.
Speaker 4: Super. Well your results were good enough this morning to get the whole crypto market going this morning. So congratulations. Thank you George. Appreciate it.
Super will your results were good enough. This morning to get the whole crypto market go on this morning. So congratulations.
Thank you George I appreciate it.
Speaker 1: And we'll take the next question from Joe Gomes with Noble Capital. Please go ahead. Your line is open. Good morning. Thank
And we will take our next question from Joe Gomes with Noble capital. Please go ahead. Your line is open.
Good morning, Thanks for taking my questions.
Thanks, Joe.
Speaker 4: I don't know if I missed this, but did you mention what the spread was this morning?
I don't know if I missed this did you mention what the spread was.
This morning.
Speaker 3: Hi, Joe. Thanks for joining us. It's Evan here. No, we didn't touch on it, but I'm happy to update you on it. I'll give it to you in two ways. Average spread without stablecoins affected in our volume was 110 basis points, similar to what we reported in Q1.
Hi, Joe Thanks for joining us seven years now.
Didn't touch on it but I'm happy to.
Great you on it.
I get it in two ways average spread.
Without stable coins effected into volume was 110 basis points similar to when we reported in Q1.
Speaker 3: And then if you remember, we don't take a fee on stable coins. If I include stable coins in in that calculation, the spread was 90 basis points compared to 82 in the prior quarter.
And then if you remember we don't take a fee on stable coins. If I include stable coin.
In in that calculation, the spread was 90 basis points compared to 82 in the prior quarter.
Speaker 7: Okay. Thanks. Thanks for that. And then, Steve, I wonder if you might be able to touch, you know, you had the great Dallas Mavericks.
Okay. Thanks. Thanks.
Thanks for that.
And then Steve I Wonder if you might be able to touch you had the great Dallas Mavericks.
Pardon me.
Speaker 4: program last quarter. Maybe give us a little color on what kind of tail is that showing? I mean, was it one and done, or are we still seeing interest from that program moving over into Voyager, even adding more accounts?
Okay.
Program last quarter.
Yes.
Maybe you can give us a little color on what kind of tail of that showing I mean, it was it one and done or are we still seeing.
Interest from from that program.
Moving over into into Voyager.
Even adding more accounts.
Speaker 5: Yeah, we're seeing a tail on that as we continue to do more things and.
Yes, we're seeing a tail on that as.
As we continue to do more things in.
Speaker 5: With them as well, and we have some other programs that are coming out shortly related to that as well. But what also gets us really excited at this point in time is the NWSL season starts kicks off in about a month and the fan base and what we're doing there and some of the partners.
With them as well and we have some other programs that are coming out shortly related to that as well, but we're also gets us really excited at this point in time.
The NWS L season starts kicks off in about a month.
And the fan base and what we're doing there and some of the partners that we're doing that sponsorship with.
Speaker 5: that we're doing that sponsorship with will give us another opportunity to reach more consumers with our whole mantra of crypto for all and bringing the crypto products and digital assets to a wider group of customers. That gets us really excited as well. So we're seeing the tail on Dallas and then in about a month the NWSL kicks off when we're excited about that too.
<unk> will give us another opportunity to reach more consumers with our whole mantra of crypto for all and bringing the crypto products and digital assets to a wider group of customers that gets us really excited as well. So we're seeing the tail on Dallas and then in about a month and Wfl kicks off and we're excited about that too.
Speaker 4: And then one more, if I may, you know, it's been a tough market in terms of the stock price.
Great and then one more if I may.
It's been a tough market in terms of the stock price.
Speaker 4: Anything, any plans for, you know, maybe looking at accelerating stock buyback?
Any plans for <unk>.
Maybe looking at accelerating stock buyback.
Speaker 4: I know you're investing heavily in the company, but just seeing as to where the stock price is these days.
Peter I know you're investing heavily in the company, but just seeing as to where the stock prices. These days.
Speaker 5: I prefer not to comment on what we're going to plan on the stock buyback at this point in time. We have our program. It's been filed, as you know, and it's out there, and, you know, if we believe it's the right time to buy stock back, we will. But the program's out there for us to execute when we feel it's the right time. Great. I'll pass.
I prefer not to comment on.
What we're going to plan on the stock buyback at this point in time.
We have our program it's been filed as you know and it's out there and.
If we believe it's the right time to.
To buy stock back, we will but the programs out there for us to execute when we feel it's the right time.
Great I'll pass the line thanks, guys I appreciate it.
Sure.
Speaker 1: We'll take our next question from Kevin Deed with HC Wayne. Wayne, please go ahead.
We will take our next question from Kevin Dede with H C. Wainwright. Please go ahead.
Speaker 4: Hi Steve, Kevin Deedy. Could you just peel the onion back a little bit on your digital marketing initiative? I know you've got a new person on board and have had for a while. Can you just talk a little bit about where you're taking that and some of the results you've seen aside from an increased tax?
Hi, Steve Kevin Didi could you just peel the onion back a little bit on your digital marketing initiative I know you've got a new person on board and have had for a while can you just talk a little bit about <unk>.
You are taking that in some of the results you've seen.
From an increased tax.
Speaker 5: Yeah, look, I think, and thanks for joining us, Kevin. I appreciate it.
Yes look I think.
For joining us Kevin I appreciate it.
<unk>.
Speaker 5: Look, I think, you know, Pam Kramer is still our CMO, and she's running our programs, and I believe even though the CAC has increased, we've been quite effective in what we've been doing, and the payback has been effective. We did bring in a person to run our partnership marketing.
Look I think.
<unk>, our CMO and she is running our programs and I believe even though the CAC has increased we've been quite effective and what we've been doing.
And the payback has been effective.
We did bring in a person to run our partnership marketing.
Speaker 5: I'm not going to give her name because she'll get a thousand emails from every NFL and Major League Baseball and NHL and et cetera, reaching out to her along with everything else. But you know, we're expanding our marketing reach.
I am not going to give her name because youll get 1000 E. Mails from every NFL Major League baseball in NHL, and et cetera are reaching out to her along with everyone else.
But we are expanding our marketing reach.
Speaker 5: Digital's been effective. We're looking at other opportunities. And to the previous question, CAC will probably expand a bit here, but as we bring more products on it, we're gonna get the return back on the customers as well. So it's about expanding it. We've been extremely effective in the digital channels and looking at other opportunities where we don't think others are, and to spend and be active in those places.
Digital has been effective we're looking at other opportunities and to the previous question capital probably expand debate here, but as we bring more products on it we're going to get the return back on on the customers as well so it's about expanding it we've been extremely effective.
In the digital channels and looking at other opportunities, where we don't think others are.
And to spend and be active in those places.
Speaker 4: So just to make sure I understand, you had your prep comments straight. Steve, you thought or you mentioned that you think you'll open in Europe sometime this year, this calendar year?
So just to make sure I understand your you had your comments, Steve you thought where you mentioned that you think youll open in Europe sometime midyear.
Olander year.
Speaker 4: Yeah, we're opening in France. Yeah, we're opening in Europe sometime in 2022. We're working hard with the quantify folks Getting it up and running there Don't want to set a timetable on it But it's it's definitely in 2022 Is our target?
Yes, we're opening license in France, Yes, we're opening in Europe sometime in 2022, we're working hard with the quantified folks and getting it up and running there.
I don't want to set a time table on it.
But it's definitely in 2022.
It is our target.
Speaker 4: Great. All right. Thanks. Appreciate taking my questions. Thanks, Kevin.
Great.
Thanks appreciate taking the questions. Thanks, Kevin.
Speaker 1: Then we'll take our next question from Krista Kai with Singular Research. Please go ahead.
And then we will take our next question from Chris Sakai with singular research. Please go ahead.
Speaker 5: Hi, good morning. Just a question on, I guess.
Hi, good morning.
Just a question on I guess.
Speaker 5: Cost per account acquisition and the payback period on that, how has that been this quarter?
Cost per account acquisition and the payback period on that how has that been this quarter.
Speaker 3: Yes, thanks Chris. We reportedly had customer acquisition costs at about $160 per month on average for the quarter and average revenue per user around $57, and so less than three months payback period.
Yes.
Thanks, Chris We reported we had customer acquisition costs at about $160 per month on.
On average for the quarter in average revenue per user around 57.
So less than three months payback period.
Speaker 5: Okay, great, and I know Steve mentioned a bunch about marketing programs, is there any, can you shed any light on any new ones like Dallas Mavericks going forward?
Okay great.
I know Steve.
Steve mentioned a bunch about.
Martin programs is there any.
Can you shed any light on any.
Any new ones.
<unk> malburg going forward.
Speaker 8: Uh, nothing I could report right now. Obviously, there's conversations going on across various sports teams, individuals, etcetera, but nothing I'm free to report on right now.
Nothing I can report right now obviously, there is conversations going on across various sports teams individuals et cetera, but nothing.
I'm free to report on right now.
Speaker 5: OK, and the last one for me, I mean, was for Dallas Mavericks, was it was it a worthwhile program?
Okay, and then last one from me.
For Dallas Mavericks.
Is it a worthwhile program.
Speaker 9: Yeah, we I mean, we, uh, it's been very successful for us. And, you know, the previous question about the long tail on it, we're still getting accounts of of that. There's a lot of promotional things we do with the maps. Um, most recently, I was down there and speaking to a group of sponsors of the Texas Legends and partners of the G League team there. Um, and there's a whole bunch of things going on that we continue to get a tail on the maps. Okay.
Yes.
We.
It's been very successful for us and as the previous question about the long tail on it we're still getting accounts of that there is a lot of promotional things, we do with the maps.
Most recently I was down there and speaking to a group of sponsors of the Texas Legends and partners of the <unk> team there.
And Theres, a whole bunch of things going on that we continue to get a tail on the maps.
Okay.
Okay, Alright, great. Thanks, Thanks, Chris.
Speaker 1: And once again, as a reminder, to ask a question today, that is star and 1. And we'll take our next question from Kyle Voigt with KBW. Please go ahead.
Yes.
And once again as a reminder to ask a question today that is star and one and we'll take our next question from Kyle Voigt with BBW. Please go ahead.
Hey, good morning.
Speaker 10: And sorry, I joined a little bit late, so I might have missed this, but I just wanted to follow up regarding the commentary on BlockFi. And in the full report that was released from the SEC yesterday,
Sorry, I joined a little bit late so I might have missed this but I just wanted to follow up regarding the commentary on on block five.
And in the full report that was released from the SEC yesterday. It does lay out a structure for block buy to offer a yield product in the U S. I guess I'm just wondering if you actually view that development.
Speaker 10: It does lay out a structure for BlockFi to offer a yield product in the U.S.
Speaker 10: I guess I'm just wondering if you actually view that development as a positive for the space, despite the fine that was levied on them.
As a positive for the space. Despite the fine that was that was levied on them.
Speaker 10: And I just want to clarify, you know, do you think you'd have to go down a similar path as BlockFi in terms of filing an S1 with the SEC, or do you believe that the current structure you have sufficiently would protect you from having to go down that path?
And I just want to clarify.
Do you think you'd have to go down a similar path is blocked by in terms of filing an S. One with the SEC or do you believe that the current structure you have sufficiently.
Wood.
We'll protect you from having to go down that path.
Speaker 8: Yeah, so thanks for taking the time, Kyle. Appreciate it. Look, I think, and we've been saying this for a while, that we believe thoughtful regulation is important for the growth of the industry. And I think by reading the order, there is, you know, a path to regulation.
Yes, so thanks for taking the time call. Appreciate it look I think and we've been saying this for a while that we believe thoughtful regulation is important for the growth of the industry and I think by reading the order.
There is.
Our path to regulation.
Speaker 8: And so that gets us, you know, looking at that and examining it. But as we've always said, there will be a path to regulation in crypto. And this is probably one of the first steps. How it relates to us is being evaluated. And I can't really share anything more because that's.
And so that gets us looking at that and examining it but as we've always said there will be a path to regulation in crypto and this is probably one of the first steps how it relates to us is being evaluated.
And I can't really share anything more because thats.
Speaker 8: You know, that's conversations between myself, our internal GC, our advisors, and we have a very, very.
Thats conversations between.
Myself, our internal GC, our advisers and we have a very very deep.
Speaker 8: deep team and you know we're evaluating all that at this point in time.
<unk> team and we're evaluating all of that at this point in time.
Speaker 10: Got it. That's helpful. And then just on Europe , you know, as we get closer to the launch there at some point, you know, in this calendar year.
Got it Thats helpful.
And then just on Europe , as we get closer to the launch there at some point in this calendar year.
Speaker 10: Just wondering if you could give any more, you know, details regarding what you're thinking in terms of, you know, launching in specific countries there. Obviously, there's France that will launch, but just curious if we should think about more of a staggered launch across Europe and kind of how that will play out. You know, should we expect most countries to be up and running across Europe by this calendar year, or will that be staggered into 2023? Thank you.
Wondering if you could give any more details regarding what youre thinking in terms of launching in specific countries. There. Obviously, there is France that will launch, but just curious curious if we should think about more of a staggered launch across Europe .
And kind of how that will how that will play out.
Should we expect most countries will be up and running across Europe by by this calendar year or will that be staggered into 2023. Thank you.
Speaker 8: Yeah, it's definitely a staggered approach. It's the same thing as bringing the debit card to market. We wouldn't want to...
Yes, it's definitely a staggered approach. It's the same thing is bringing the debit card to market, we wouldn't want to bring 20 countries on at one time.
Speaker 8: bring 20 countries on at one time. We want to do it really structured and staggered to make sure we get the learnings.
We want to do it really structured and staggered to make sure we get the learnings.
Speaker 8: and just grow from there. So, obviously, France is a very high priority for us, having the license there, and we already have an existing business in Denmark. So, you know, two countries that we're excited about right off the get-go, but we will stagger it to make sure that we do it properly and give the customers, and again, it always comes back to the customers with us, how are we gonna give them the best experience in using Voyager? And we wanna make sure we do that right for them right from the get-go.
And just grow from there so.
Obviously, France is a very high priority for us having the license there.
And we already have an existing business in Denmark. So two countries that we're excited about write off the.
Get go, but we will stagger it to make sure that we do it properly and give the customers and it again it always comes back to the customers with US how are we going to give them the best experience in using Voyager and we want to make sure we do that right for them right from the get go.
Yes.
That's helpful. Thanks, Steve.
Thank you.
Speaker 1: We'll take our next question from Mark Palmer with BTIG, please go ahead.
We will take our next question from Mark Palmer with BTG. Please go ahead.
Speaker 11: Yes, good morning, just wanted to follow up on some of the comments you made earlier with regard to the staking program and thanks for the color on Avalanche in particular. What percentage of Voyager's rewards program is currently being funded out of staking versus lending and how do you see those percentages shifting over time? Thank you.
Yes. Good morning, just wanted to follow up on some of the comments you made earlier with regard to.
Speaking program.
And thanks for the color on Avalanche in particular.
Percentage of.
Voyagers rewards program is currently.
Being funded out of staking versus lending and how do you see those percentages shifting over time. Thank you.
Speaker 8: Yeah, thanks, Mark. Thanks for taking the time this morning. I think on the face of our financials.
Yeah. Thanks, Mark Thanks for taking the time this morning, I think on the face of.
Our financials on the P&L, we've talked about with the staking revenue is versus the lending revenue and our goal.
Speaker 8: On the P&L, we talk about what the staking revenue is versus the lending revenue, and our goal is to stake more and more. Let's take ETH for an example. We just started staking ETH, and we're going to continue to move that out of lending and into staking. Then you add Avalanche and some of the other coins we're working on. Our goal is to really get it top-heavy on the staking side more so than the lending side.
As to state more and more lets take <unk> for an example.
We just started staking ease and would continue to move that out of lending into staking, then you add avalanche and some of the other coins were working on our goal is to really get at top heavy on the staking side more so than the lending side.
Yes.
Okay. Thanks very much.
Thanks Mark.
Speaker 1: There are no further questions at this time. I'll turn the call back over to Mr. Stephen Ulrich for any additional remarks.
There are no further questions at this time I will turn the call back over to Mr. Stephen <unk> for any additional remarks.
Speaker 8: I just want to say thanks to everyone who joined the call today, who's going to listen to the replay on it. We really appreciate your interest in Voyager. We're extremely excited about our product path for 2022. There's a lot on our plate, but we know with the team we have and the growth and the additions we've made to our leadership team and our entire staff, we're excited about executing on that plan. We think we're.
I just wanted to say thanks to everyone, who joined the call today are who's going to listen to the replay on it we really appreciate your interest in Voyager, we're extremely excited about our product path for 2022.
There is a lot on our plate, but we know with the team we have and the growth in the additions we've made to our leadership team and our entire staff.
We're excited about executing on that plan, we think where we are in execution based company and we're going to continue to grow our business and so thank you again for taking the time exciting time to be in crypto and look forward to speaking to everyone. Soon.
Speaker 8: We're an execution-based company, and we're going to continue to grow our business. And so thank you again for taking the time, exciting time to be in crypto. I look forward to speaking to everyone soon.
Speaker 1: Thank you, and this does conclude today's program. Thank you for your participation. You may disconnect at any time.
Thank you and this does conclude today's program. Thank you for your participation you may disconnect at any time.
Okay.
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