Q4 2021 Bakkt Holdings Inc Earnings Call
Speaker 1: And I.
Yeah.
Okay.
Yes.
Greetings and welcome to the box fourth quarter 2021 earnings conference call at.
Speaker 2: Greetings and welcome to the back fourth quarter 2021 earnings conference call at this time all participants are on a listen only mode. A question and answer session will follow the.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
Speaker 2: As a reminder, this conference call is being recorded. I would now like to turn it over to Anne DeVries, Head of Investor Relations at Vax. Please go ahead.
As a reminder, this conference call is being recorded I would now like to turn it over to Anne <unk> head of Investor Relations at <unk>. Please go ahead.
Speaker 3: Good morning and thank you for joining us for BAC's fourth quarter earnings call. Today's presentation, including the separate earnings call presentations that can be found at our investor relations website at www.investors.bac.com will contain certain statements about BAC that are forward-looking statements.
Good morning, and thank you for joining us for Bax fourth quarter earnings call today's presentation, including the separate earnings call presentation that can be found at our Investor Relations website at www dot investors that back dot com will contain certain statements about back that are forward looking statements. These statements are based on the current expectations of the management.
Speaker 3: These statements are based on the current expectations of the management of BAC and are subject to uncertainty and changes in circumstance, many of which are beyond BAC's control, which may cause actual results to differ materially from those expressed or implied in such forward-looking statements.
Facts and are subject to uncertainty and changes in circumstances, many of which are beyond <unk> control, which may cause actual results to differ materially from those expressed or implied in such forward looking statements.
Speaker 3: In addition, these statements are based on a number of assumptions that are subject to change. Please refer to our company's current report on Form 8K filed on October 21, 2021, following the closing of our recent business combination, for a more complete discussion on forward-looking statements and the risk factors applicable to our company.
In addition, these statements are based on a number of assumptions that are subject to change. Please refer to our company's current report on form 8-K filed on October 21, 2021. Following the closing of our recent business combination for a more complete discussion on forward looking statements and the risk factors applicable to our company.
Speaker 3: During today's presentation, in addition to discussing results that are calculated in accordance with generally accepted accounting principles, we will refer to certain non-GAAP financial mentors.
During today's presentation. In addition to discussing results that are calculated in accordance with generally accepted accounting principles, we will refer to certain non-GAAP financial measures. Furthermore, the presentation of income tax benefit or expense for the successor portion of the fourth quarter of 2021 as well as items derived from such measure like net loss.
Speaker 3: Furthermore, the presentation of income tax benefit or expense for the successor portion of the fourth quarter of 2021, as well as items derived from such measure, like net loss, reflect management's current estimate for income tax benefit or expense, which is subject to change. For more information on this, the basis of presentation for our financial results and our non-GAAP measures, please refer to our earnings release, which was filed this morning with the SEC.
<unk> management's current estimate for income tax benefit or expense, which is subject to change for more information on the basis of presentation for our financial results in our non-GAAP measures. Please refer to our earnings release, which was filed this morning with the SEC.
Speaker 3: Joining me on today's call are Gavin Michael, Chief Executive Officer, and Drew Levin, Chief Financial Officer. After our prepared remarks, we will answer questions we received from our investors through the Faye Technologies platform. After that, Gavin and Drew will be available to answer questions from the analyst community. I'll now turn it over to Gavin.
Joining me on today's call are Kevin Michael Chief Executive Officer, and drew Levine Chief Financial Officer.
After our prepared remarks, we will answer your questions. We received from our investors through the state technology platform. After that Gavin insurer will be available to answer questions from the analyst community I will now turn it over to Kevin.
Thanks, Tim Good morning, everyone. It's my pleasure to discuss <unk> fourth quarter earnings for 2021.
Speaker 4: Thanks, Anne. Good morning, everyone. It's my pleasure to discuss BAC's fourth quarter earnings for 2021.
Speaker 4: Since our last quarterly update, we've been hard at work on the objectives we set forth during that call. We are utilising our extremely strong capital position to build scale with new and existing partners, drive growth through new capabilities and invest in our business platform and infrastructure to create sustainable, long-term shareholder value.
Quarterly update we've been hard at work on the objectives, we set forth during that call. We are utilizing our extremely strong capital position to build scale with new and existing partners drive growth through new capabilities and invest in our business platform and infrastructure to create.
Sustainable long term shareholder value.
Our vision remains unchanged to connect the digital economy.
Speaker 4: Our vision remains unchanged to connect the digital economy. We power commerce by enabling consumers, businesses, and institutions to unlock value from digital apps.
Power commerce by enabling consumers businesses and institutions to unlock value from digital assets.
2021 was truly a transformative year in this vision for back we focused on building the foundation for the company in advance of that publicly.
Speaker 4: 2021 was truly a transformative year in this vision for BACT. We focused on building the foundation for the company in advance of our public list.
Speaker 4: signing and activating partners, and building our team and our capability.
Timing and activating partners and building our team and capabilities the.
Speaker 4: The numbers on this page illustrate the strong base we're working from. Today, the back platform is multifaceted and robust.
The numbers on this page illustrates the strong base, we're working for today.
<unk> platform is multifaceted and robust we said this before but we are truly just getting started in this set of metrics demonstrates the powerful platform. We are starting from in 2021, we saw $1 4 billion linked on our platform through the consumer more than 88.
Speaker 4: We've said this before, but we're truly just getting started, and this set of metrics demonstrate the power of the platform we are starting from. In 2021, we saw 1.4 billion linked on our platform through the Consumer App, more than 88 billion points redeemed across our platform.
<unk> points redeemed across our platform.
Speaker 4: 82% causally growth in crypto trades and 250% causally increased in person-to-person sending of crypto.
3% quarterly growth in crude oil trades and 250% closely increased in person to person send unit crypto.
Speaker 4: With an employee base of almost 600, up more than 130% year over year, our team is helping to drive so much of this momentum.
With an employee base of almost 600 up more than 130% year over year.
Team is helping to drive some much of this momentum.
Speaker 4: These metrics show the depth and breadth of our platform today. This shows that we are growing and scaling further from a position of strength. It's truly reflective of the strong and trusted partnerships that we already have with well-recognised and influential groups.
These metrics show the depth and breadth of our platform. Today. This shows that we are growing and scaling further from a position of strength.
It's truly reflective of the strong and trusted partnerships that we already have with well recognized and influential brands.
Speaker 4: Our key priorities remain consistent with what we shared during our third-quarter earnings call. We are connecting the digital economy at the intersection of loyalty, crypto and payment.
Our key priorities remain consistent with what we shared during our third quarter earnings call. We are connecting the digital economy at the intersection of loyalty crypto and payments. We are continuing to build partnerships, which are aligned with our b to b to C go to market model.
Speaker 4: We're continuing to build partnerships which align with our B2B2C go-to-market model.
Speaker 4: This approach enables us to scale quickly and efficiently.
Approach enables us to scale quickly and efficiently.
Speaker 4: and we're enriching partner brands by bringing valuable experiences to their existing customers and potential growth opportunities with new customers.
And we're enriching partner brands by bringing valuable experiences to their existing customers and potential growth opportunities with new customers.
We have extensive relationships with companies that are household names and we're deepening these relationships by seeking ways that we can partner across multiple backed product pillars.
Speaker 4: We have extensive relationships with companies that are household names and we're deepening these relationships by seeking ways that we can partner across multiple backed product pillars.
We're also aggressively investing in our products and capabilities to support existing and new partnerships.
Speaker 4: We're also aggressively investing in our products and capabilities to support existing and new parts.
Speaker 4: we remain focused on our four major product areas.
We remain focused on our four major product areas Cryptos services crypto rewards painting with digital assets and power in the royalty and making thoughtful decisions on where and how we make enhancements.
Speaker 4: crypto services, crypto rewards, paying with digital assets, empowering royalty, and making thoughtful decisions on where and how we make enhancements.
Speaker 4: And of course, we are evaluating and executing on potential expansion opportunities, which means continuing to grow our B2B2C partnerships and activating those that we've already enacted.
And of course, we are evaluating and executing on potential expansion opportunities, which means continuing to grow our b to b to C partnerships and activating both that we've already announced.
Speaker 4: but also evaluating the landscape for growth in adjacent areas as opportunities arise.
Also evaluating the landscape for growth in adjacent areas as opportunities arise.
We continue to build and enhance our product capabilities for our partners supported by our institutional grade technology platform, which is the core of everything we do.
Speaker 4: We continue to build and enhance our product capabilities for our partners supported by our institutional grade technology platform which is the core of everything we do.
Our crypto services, including by cell capabilities supported by our regulated platform and secure custody innate.
Speaker 4: Our crypto services, including buy-sell capabilities, supported by our regulated platform and secure custody, enable businesses to bring crypto to their customers directly in their trusted environment.
Enable businesses to bring crypto to their customers directly in their trusted environments.
We are leading the way in bringing triple services to non native crypto companies.
Speaker 4: We are leading the way in bringing crypto services to non-native crypto companies.
We expect crypto rewards brands can reward their customers and crypto every day as they spend.
Speaker 4: With fast crypto rewards, brands can reward their customers in crypto every day as they spend.
Speaker 4: Whether within an existing loyalty program, through a credit or debit card, or a new way to earn, we are enabling unique brand experiences and an ability for consumers to passively acquire digital assets that have an opportunity to rise in value.
Whether within an existing loyalty program through a credit or debit card.
Or a new way to earn we are enabling a unique brand experiences and an ability for consumers to passively acquired digital assets.
That has an opportunity to rise in value.
Speaker 4: As mass adoption of cryptocurrencies continue, crypto buyers are signaling a desire for these new rewards mechanisms. In fact, in our recent loyalty and rewards study with a thousand consumers, about half of the crypto buyers are interested in earning rewards in crypto instead of traditional rewards points.
As mass adoption of crypto currencies continue crypto buyers are signaling a desire to be huge rewards mechanisms.
In a recent royalty and reward study with 1000 consumers.
Half of the crypto buyers are interested in earning rewards in crypto instead of traditional rewards points.
We see this trend continuing and it's an important call to action for brands and businesses to quickly define the cryptos strategies.
Speaker 4: we see this trend continuing and it's an important call to action for brands and businesses to quickly define their crypto strategy.
Pay with digital assets represents a broad array of opportunity.
Speaker 4: Paying with digital assets represents a broad array of opportunities.
Speaker 4: We enable using digital assets like crypto and points for payment. So we're also seeing strong traction with disbursements and payout capabilities in crypto.
We enable using digital assets like crypto endpoints for payment.
We're also seeing strong traction with disbursements and payout capabilities in crypto.
Speaker 4: We're enabling crypto disbursements so that businesses can pay gig workers marketplace sellers and creators in crypto when they receive a payment.
We're enabling crypto disbursements, so that businesses can pay gigawatt.
Marketplace sellers and creators in crypto when they receive a payment.
We can enable a simple embedded experience during key moments of money decision, making.
Speaker 4: we can enable a simple embedded experience during key moments of money decision making.
Speaker 4: We expect younger generations and tech-savvy consumers to engage with crypto in this new way.
We expect younger generation and tech savvy consumers to engage with crypto in this new way.
Speaker 4: And our capabilities provide an important differentiator to platforms that are competing to scale with customers and workers alike.
And Ah capabilities provides an important differentiator.
That forms that are competing to scale with customers and workers alike.
Our platform has been built from the start.
Power loyalty programs.
Speaker 4: to power loyalty programs. Large financial institutions and loyalty programs alike take advantage of our turnkey solutions to drive consumer loyalty and engagement.
Large financial institutions and loyalty programs alike take advantage of our turnkey solutions to drive consumer loyalty and engagement.
Speaker 4: Consumers can access a full spectrum of travel and experiences, Apple and other merchandise and gift cards through our developed storefront.
Consumers can access a full spectrum of travel and experiences Apple and other merchandise and gift cards through our developed store fronts.
Speaker 4: The strength of the platform that we have in loyalty is a very strong differentiator for us both in our deep expertise in understanding loyalty and in our valued relationships with large and established partners that are seeking to redefine brand loyalty in a post pandemic retail market.
The strength of the platform that we have in loyalty is a very strong differentiator for us both in our deep expertise in understanding loyalty and and our valued relationships with large and established partners that are seeking to redefine brand loyalty in a post pandemic.
<unk> retail market.
Our capability set up numerous differentiated use cases for partners and consumers alike. We can walk through just a few.
Speaker 4: Our capabilities set up numerous differentiated use cases for partners and consumers alike. We can walk through just a few.
We are connecting crypto experiences to trusted banks and credit unions truly bringing crypto to mainstream.
Speaker 4: We are connecting crypto experiences to trusted banks and credit unions, truly bringing crypto to mainstream.
Speaker 4: Adoption of crypto is already here and we are the connection between consumer financial services and crypto.
Adoption of crypto is already here and we have a connection between consumer financial services and crypto, we make this embedded capability seamless for our partners.
Speaker 4: We make this embedded capability seamless for our partners.
We're connecting crypto rewards to consumers' daily spending and enabling brands to also redemption.
Speaker 4: We're connecting crypto rewards to consumers' daily spending and enabling brands to offer redemption or earn in crypto capability.
Earn encrypt our capabilities.
Speaker 4: providing their customers with choice and yield opportunities.
Providing their customers with choice and yield opportunity.
We're bringing <unk> to the gig economy, and the disbursements universe more broadly.
Speaker 4: We're bringing crypto to the gig economy and the disbursements universe more broadly.
Speaker 4: from crypto rewards for customers to enabling workers creators and sellers to elect for portions of their payment to be received in crypto.
From crypto rewards for customers to enabling workers creators and sellers to elect proportions of their payment to be received in crypto.
Speaker 4: We believe this segment is ripe for crypto and we're focused on scaling our partnership in this space. We're connecting loyalty programs to consumer choice and delight.
We believe this segment is ripe for ton and we're focused on scaling our partners in this space, we're connecting loyalty programs to consumer choice and delight, creating opportunities for flexibility.
Speaker 4: creating opportunities for flexibility connection and alignment with other brands and moments of surprise and delight can go a long way with consumers and the choices they make.
<unk> and alignment with other brands and moments of surprise and delight can go a long way with consumers and the choices they make.
We are truly helping brands set themselves apart.
Speaker 4: We're truly helping brands set themselves apart. We're connecting.
We're connecting payment options to drive commerce.
From paying with your digital assets like rewards points of value earned through crypto.
Speaker 4: From paying with your digital assets like rewards points or value earned through crypto, payments are a natural extension to the digital asset ecosystem that enables brands to further integrate into consumers' everyday lives.
Payments are a natural extension to the digital asset ecosystem.
It enables brands to further integrate into consumers' everyday lives.
Speaker 4: and our custody service remains the backbone of our crypto offering. Our unique capabilities differentiate us. Specifically, our state of being able to serve as a valuable partner across the industry.
And our custody service remains the backbone of our crypto offerings are unique.
Capabilities differentiate us specifically.
<unk> to serve as a valuable partner.
Across the industry.
Particularly as we see unprecedented.
Speaker 4: then to institutional demand for cryptocurrency.
Institutional demand.
Their currencies.
Drilling data on a crypto partnerships with trusted banks and credit unions.
Speaker 4: building deeper on our crypto partnerships with trusted banks and credit unions.
In Q4.
To access and serve.
Thousands of regional local and community banks across the country virus.
Speaker 4: thousands of regional, local and community banks across the country.
Set of repeatable processes and integration.
Speaker 4: Our work in activating their networks is already well underway. In December , we were pleased to announce the first member bank in Manusquan Bank, and have subsequently added great names like Hanover Bank and Valiance Bank to our growing roster.
Our work in activating their networks is already well underway in.
In December we were pleased to announce the first member bank and <unk> Bank and have subsequently added great names like kind of a bank and Valeant bank to our growing roster.
Speaker 4: These partners will be making cryptocurrency access simple and approachable within the digital banking environment their clients know and trust. And that is enabling the banks to participate in this space and break into new customer segments, like younger generations. The crypto-curious, the crypto-newbie, our capabilities embed in their platforms.
These partners will be making crypto currency access simple and approachable within the digital banking environment that clients know and trust and that is enabling the banks to participate in this space and break into new customer segments like younger generations. The crypto curious.
The crypto newsy.
Our capabilities embedded in their platforms.
Creating an easy bridge for consumers to invest with even small amounts and to be able to transact and views that crypto in the context of the broader financial lives.
Our services go much further than fully embedded crypto experiences they extend to customer service marketing support and educational content to drive usage and customer engagement.
Excited to help these and many more financial institutions deliver critical services to their customers and associate with their brands with innovation.
New opportunities for customer acquisition, and really prepare for potential futures of money.
Speaker 4: Crypto experiences are at the doorstep of the gig economy and offer new and exciting
Crypto experiences are at the doorstep of the gig economy and offer new and.
Speaker 4: exciting opportunities for so many different segments of payment recipients to engage with new digital assets. Our platform can enable...
Exciting opportunities for so many different segments of payment recipients to engage with new digital assets.
<unk> can enable using it.
Speaker 4: your crypto or other digital assets to pay for food or daily groceries like in our newly announced partnership with bringmethat.com. It also enables payouts and disbursement in crypto for a variety of uses.
Crypto or other digital assets to pace with food or daily groceries like in our newly announced partnership with bringing that dot com.
Also enables payouts and disbursements and crypto for a variety of use cases.
These include for those gig workers on site hustling for marketplace payments or gaming or even per payroll and the new tight on employee rewards.
Speaker 4: These include for those gig workers or side hustlers, for marketplace payments or gaming, or even for payroll and a new take on employee rewards.
Working to give businesses more opportunities to leverage new digital assets in the ecosystem and really set themselves apart from the competition.
Speaker 4: We're working to give businesses more opportunities to leverage new digital assets in their ecosystem and really set themselves apart from the competition.
Speaker 4: And our capabilities are built to scale and repeat across partners, starting with Bring Me That, which we announced in December . That will be integrated as a payment option within the company's digital channels, allowing customers to pay with cash, participating points, or crypto that they hold in our consumer wallet.
And our capabilities are built to scale and repeat across partners, starting with bringing you that which we announced in December .
<unk> will be integrated as a payment option within the company's digital channels, allowing customers to pay with cash participating points, although crypto since a hole in our consumer wallet.
In addition, we will launch our crypto payout capabilities to enable drivers working with bringing me that dot com to select crypto into payment metrics buyback.
Speaker 4: In addition, we'll launch our crypto payout capabilities to enable drivers working with bringmethat.com to select crypto as a payment method via BAC.
Speaker 4: Our capabilities create key differentiators for platform, marketplace, and payroll companies to attract workers and users with new and exciting payment and rewards options.
Our capabilities create key differentiators for platform marketplace, and payroll companies to attract workers and users with new and exciting payment and rewards option.
As I mentioned earlier, we continue to connect businesses to secure crypto custody related custodian for both big coin and Isa and are warm and cold asset storage is rebalanced between tiers to minimize the risks associated with warm storage.
Speaker 4: As I mentioned earlier, we continue to connect businesses to secure crypto custodians for both Bitcoin and Ether, and our warm and cold asset storage is rebalanced between tiers to minimize the risks associated with warm storage.
For additional layers of protection of warm and cold wallets are built on secure wallet architectures, along with multi zone physical security, including.
Speaker 4: For additional layers of protection, our warm and cold wallets are built on secure wallet architectures along with multi-zone physical security, including 8th grade vaults.
Great Falls.
Speaker 4: We also hold insurance policies against these assets.
We also hold insurance policies against these assets.
Our custody and span a wide set of businesses and financial institutions at a time when the crypto market continues to expand at a robust pace.
Speaker 4: Our custody partners span a wide set of businesses and financial institutions at a time when the crypto market continues to expand at a robust pace.
Speaker 4: leading reputable companies to diversify their custody of assets.
Leading reputable companies to diversify their custody of assets.
Recently, we announced the customer deposits.
Partnership with <unk>, a leading digital asset exchange and trading institution.
Speaker 4: Partnership with Nexo, a leading digital asset exchange and trading institution.
We're pleased that nexon and many others continue to trust us solutions as they diversify their asset bases staying at the forefront of crypto custody helps inform and enable a broader crypto to use cases for businesses and consumers.
Speaker 4: We're pleased that Nexo and many others continue to trust our solutions as they diversify their asset base.
Speaker 4: staying at the forefront of crypto custody helps inform and enable our broader crypto use cases for businesses and consumers.
And our Q3 earnings we talked about the capabilities, we enable for customers to engage with their loyalty points and brand new way.
Speaker 4: In our Q3 earnings, we talked about the capabilities we enable for customers to engage with their loyalty points in brand new ways.
Speaker 4: We continue to build on this capability with new partners, and our partnership with Wyndham is another great example of that.
We continue to build on this capability with new partners and our partnership with Wyndham is another Great example of this.
Speaker 4: We went live with Wyndham Rewards in Q4, enabling members to link their account within the BACGAP to instantly convert their points to cash. Once converted, members could choose to deposit funds into their bank account, send them to a friend, purchase discounted gift cards, or use them online and in-store for purchases via both Apple Pay and Google Pay.
We went live with Wyndham rewards in Q4.
<unk> members to link their account within the back that to instantly convert that points to cash.
Once converted members could choose to deposit funds into their bank account.
Send them to a frame purchase.
Kind of a gift card or use them online and in store for <unk>.
Purchases via both Apple pay and Google.
Speaker 4: Since launch, we've seen some great response.
Since launch we've seen some great response.
Speaker 4: with a nearly 30% increase in download to registration conversion, a 30% lower cost per acquisition, and five times activation of the backed card versus the overall population.
With nearly 30% increase in download to registration conversion.
30% lower cost per acquisition.
And five times activation of the <unk> card versus the overall population.
We continue to see reinforcement of the attractiveness of using your points and digital assets to transact in new ways as we work with a variety of partners.
Speaker 4: We continue to see reinforcement of the attractiveness of using your points and digital assets to transact in new ways as we work with a variety of partners who will support brands and businesses in driving customer loyalty and growth.
Will support brands and businesses and driving customer loyalty and growth.
We're making rapid progress with the platform partners that we announced in Q4 as we continue to move forward and work closely with truly excited about the expense of opportunity with Pfizer, we've seen some early wins with the rollout of a crypto services with multiple bank and we're further integrating buy sell.
Speaker 4: We're making rapid progress with the platform partners that we announced in Q4. As we continue to move forward and work closely, we're truly excited about the expansive opportunity. With Fiserv, we've seen some early wins with the rollout of our crypto services with multiple banks. And we're further integrating Fiserv capabilities into their bank network.
Capabilities into their bank network.
Speaker 4: We're also partnering to build crypto payout functionality at Crestra. We're currently integrating crypto buy-sell capabilities into their bank network and engaging in conversations with prospective partners.
We're also partnering to build crypto payout functionality equestria, we're currently integrating <unk> capabilities into their bank network and engaging in conversations with prospective partners.
Speaker 4: These activities are foundational to our activation with each of these parts, but they are also relevant.
These activities are foundational to our activation with each of the products.
But they are also relevant more broadly.
Speaker 4: You know from a scaling perspective this work enables us to expand much more quickly from here and build upon our momentum.
From a scaling perspective this work enables us to expand much more quickly from here and build upon our momentum.
Speaker 4: We are building repeatable processes with broad market applications.
We are building repeatable processes with broad market application.
Speaker 4: processes that enable us to achieve scale quickly.
<unk> says that enable us to achieve scale quickly.
Such that deepening with existing partners and activating used one becomes easily repeatable.
Speaker 4: such that deepening with existing partners and activating new ones becomes easily repeatable.
Our platform is engineered for scale everything from our back end technology embedded experiences and customer care easily scale and allow partners to rapidly deploy assets.
Speaker 4: Everything from our back-end technology, embedded experiences, and customer care, easily scale and allow partners to rapidly deploy our.
Speaker 4: We are aggressively investing in our products and capabilities, leveraging our strong capital position to invest in and scale the business.
We are aggressively investing in our products and capabilities, leveraging our strong capital position to invest in and scale of the business.
Speaker 4: Our teams are hard at work on our payout and disbursement capabilities.
Our teams are hard at work on a payout and disbursement capabilities.
Earlier, we talked about this in the context of a partner bring me back but we.
Speaker 4: Earlier we talked about this in the context of our partner Bring Me That, but we see payout functionality being relevant to gig economy platforms, market placements, payroll companies, gaming, gambling and beyond.
We see power functionality being relevant to big economy platform marketplaces payroll companies gaming gambling and beyond.
Speaker 4: we will be enabling open-loop crypto wallets so that consumers can deposit and withdraw crypto, starting with Bitcoin, without conversion to fiat.
We will be enabling open loop crypto wallets, so that consumers can deposit and withdrawal crypto starting with big clients without conversion to see it.
Speaker 4: This enables us to access the entire network of Bitcoin owners today, leveraging our payment or buy-sell capabilities, regardless of where they originated their crypto transactions. This has great application for many new partners as well who want to engage in the OpenLoop environment.
This enables us to access the entire network of bitcoin today, leveraging our payment or buy sell capabilities with God bless of where they originated that crypto transactions. This has great application for many new partners as well who want to engage in the open loop environment.
Speaker 4: We will also be expanding beyond Bitcoin and Ether to offer additional cryptocurrencies and stablecoins on our platform.
We will also be expanding beyond bitcoin and aesop to offer additional crypto currencies and stable claims on our platform.
The specific timing of this will of course be subject to regulatory approvals.
Speaker 4: The specific timing of this will, of course, be subject to regulatory approvals, but we recognize that consumers value choice, and that is what we want to provide. We will stay true to our roots of offering a small number of well-controlled coins, prioritizing quality over quantity.
We recognize that consumers value choice and that is what we want to provide we will stay true to our roots of offering a small number of well controlled points prioritize.
Causing a handful of the largest and most liquid.
Speaker 4: ...closing a handful of the largest and most...
Speaker 4: We are continuing to invest in our loyalty business with rewards and points innovation.
We are continuing to invest in our loyalty business rewards endpoint innovations.
We are launching pay with points capabilities that are applicable to partners broadly we are enhancing our apple and our merchandise storefront to more easily allow for consumer choice and convenience and.
Speaker 4: We are launching pay with points capabilities that are applicable to partners broadly. We are enhancing our Apple and our merchandise storefronts to more easily allow for consumer choice and convenience.
And we continue to enhance our travel capability with more self serve opportunities to make transacting with us through our partners, even easier and to reduce the costs for our partners. We noted, enabling real time funding as necessary for our platform across our own experiences and experiences.
Speaker 4: and we continue to enhance our travel capabilities with more self-serve opportunities to make transacting with us through our partners even easier and to reduce the costs for our partners. We know that enabling real-time funding is necessary for our platform across our own experiences and experiences embedded in partner applications.
Embedded in partner application.
It is critical for us to make it easy for customers to use our services instantly without having to wait for the deposit to clear.
Speaker 4: It is critical for us to make it easy for customers to use our services instantly without having to wait for their deposit to clear.
Very soon real time funding will be live on our platform both of the transactions within the App.
Speaker 4: Very soon, real-time funding will be live on our platform, both for transactions within the app but also for the platform more broadly.
Also to the platform more broadly.
Speaker 4: I appreciate the opportunity to talk about our focused set of activities over the last quarter at PACT. I'll now turn it over to the Chair. Good morning, everyone. I will now walk through our financial results for the quarter.
I appreciate the opportunity to talk about our focused set of activities over the last quarter of that.
I'll now turn it morning, everyone I will now walk through our financial results for the quarter.
Before we dive into the numbers there are a few items to note regarding the presentation of our results for the quarter.
Speaker 4: Before we dive into the numbers, there are a few items to note regarding the presentation of our results for the quarter.
Speaker 4: On October 15th, we completed our business combination with BPC Impact Acquisition Holdings, or BIH. As such, our results for the quarter are significantly impacted by the acquisition.
On October 15th we completed our business combination with BPC impact acquisition holdings or Bih.
As such our results for the quarter are significantly impacted by the acquisition.
Speaker 4: First, I want to note that we use the term predecessor to represent the results of backholding LLC prior to October 15th. These results exclude any results.
First I want to note that we use the term predecessor to represent the results of that holding LLC prior to October 15.
These results exclude any results from Bih.
Successor represents the results of backed holdings incorporated from October 15 to December 31, 2021, which is the post merger period.
Speaker 4: Successor represents the results of Bakkt Holdings Incorporated from October 15th to December 31st, 2021, which is the post-merger period.
Speaker 4: Combined represents the combination of predecessor and successor for the applicable period. This is a non-GAAP figure. For future quarterly results, the presentation of results should be more straightforward.
Combined represents the combination of predecessor and successor for the applicable period.
This is a non-GAAP figure.
For future quarterly results the presentation of results should be more straightforward.
Turning to slide 15, we have our fourth quarter results separated into the predecessor and successor periods.
Speaker 4: Turning to slide 15, we have our fourth quarter results separated into the predecessor and successor periods.
Speaker 4: Net revenue in the fourth quarter of 2021 for the combined period, which is a non-GAAP figure, was $13.7 million, which increased by $4.2 million, or 45% compared to the fourth quarter of 2020, primarily driven by strong activity from loyalty redemption.
Net revenue in the fourth quarter of 2021 for the combined period, which is a non-GAAP figure was $13 7 million, which increased by $4 2 million or 45% compared to the fourth quarter of 2020, primarily driven by strong activity of loyalty redemption.
During the quarter, we recognized certain significant items related to the business combination which are largely noncash.
Speaker 4: During the quarter, we recognized certain significant items related to the business combination, which are largely non-cash. We had $52.6 million of operating expense in the predecessor period of the fourth quarter and $86 million of operating expense in the successor period.
We had $52 6 million of operating expense in the predecessor period of the fourth quarter.
And $86 million of operating expense of the successor period.
Speaker 4: A substantial portion of this expense was related to the business combination, including non-cash compensation charges of $30.6 million, respectively, related to the stock of
A substantial portion of this expense was related to the business combination including.
Noncash compensation charges of $36 million, respectively related to the <unk>.
Stock.
Back to them.
Employees and directors in exchange for legacy interest and the acquired company.
Speaker 4: employees and directors in exchange for legacy interest in the acquired company.
This class B stock.
It was included in the initial aggregate valuation of $2 1 billion.
Speaker 4: was included in the initial aggregate valuation of 2.1 billion dollars.
And acquisition related expense of $12 $7 million and $1 5 million are included in the predecessor and successor, respectively.
Speaker 4: and acquisition-related expense of $12.7 million and $1.5 million are included in the predecessor and successor respectively.
In addition, we had a noncash mark to market expense of $79 4 million and the successor period related to the fair value of warrant liability issued by BH prior to the business combination.
Speaker 4: In addition, we had a non-cash mark-to-market expense of $79.4 million in the successor period related to the fair value of warrant liabilities issued by VAH prior to the business combination.
Speaker 4: The 6.1 million private placement warrants were exercised by the sponsor, which cost $50.4 million of the impact.
The $6 1 million private placement warrants were exercised by the sponsor which call it which caused $54 million of the impact.
Speaker 4: Additionally, $3.2 million of the public warrants were exercised, and contributed $23.4 million to the impact.
Additionally, $3 2 million of the public warrants were exercised and contributed $23 4 million at the end.
Speaker 4: of the 16.5 million warrants originally outstanding at the transaction close. Only 7.1 million were still outstanding at December 31st, 2021.
Of the $16 5 million warrants originally outstanding at the transaction close only $70 1 million, we're still outstanding at December 31, 2021.
Speaker 4: Those remaining public warrants serve an incremental mark-to-market impact of $5.6 million at year-end.
The remaining public Lawrence drove an incremental mark to market impact of $5 6 million at year end.
Speaker 4: We reported a net loss of $153.1 million in the successor period when we were a public company, of which $128.5 million was related to the significant items I just mentioned.
We reported a net loss of $153 1 million successor period, when we were in a public company.
Which $128 5 million was related to the significant items I just mentioned.
Speaker 4: The portion of the loss attributable to the Class A shareholders was $32.4 million, or a loss of 60 cents per share.
A portion of the loss attributable to the class a shareholders was $32 4 million.
Or a loss of <unk> 60 per share.
As a reminder, there are another 206 million class B shares related to the operating company that are currently not.
Speaker 4: As a reminder, there are another 206 million class B shares related to the operating company that are currently not.
On slide 16, we have our EBIT.
EBITDA and adjusted EBITDA for the fourth quarter of 2021.
Speaker 4: dot and adjusted EBITDA for the fourth quarter of 2021. Adjusted EBITDA reflects adjusted
Adjusted EBITDA reflects adjustments for noncash.
Cash and acquisition related items that impacted that period.
Speaker 4: cash and acquisition related items that impacted that period.
Speaker 4: even after the successor period, was a loss of $147.6 million.
EBITDA for the successor period was a loss of $147 6 million.
Speaker 4: adjusted even after the successor period was a loss of 21.8 million dollars.
Adjusted EBITDA for the successor period was a loss of $21 $8 billion.
The loss in adjusted EBITDA was primarily due to the increased investment in growing the company.
Speaker 4: The loss in adjusted EBITDA was primarily due to the increased investment in growing the company.
We will continue investing in our business and have significant liquidity on our balance sheet to fund this growth with almost $400 million of cash readily available for investment.
Speaker 4: We will continue investing in our business and have significant liquidity on our balance sheet to fund this growth, with almost $400 million of cash readily available for investment.
Okay.
On Slide 17, we show net revenue broken out between subscription and service revenue and transaction revenue.
Speaker 4: On slide 17, we showed net revenue broken out between subscription and service revenue and transaction revenue.
Okay.
Speaker 4: Combined net revenue in the fourth quarter of 2021 was $13.7 million and increased 45% compared to the fourth quarter of 2020.
Combined net revenue in the fourth quarter of 2021 was $13 7 million and increased 45% compared to the fourth quarter of 2020.
Combined net revenue for the full year of 2021 was $39 4 million.
Speaker 4: Combined net revenue for the full year of 2021 was $39.4 million, up 38% compared to 2020.
Up 38% compared to 2020.
Strong revenue growth that we saw in 2021 was the result of an increase in enterprise customers and an improvement in the economy as COVID-19 impacts have subsided.
Speaker 4: The strong revenue growth that we saw in 2021 was a result of an increase in enterprise customers and an improvement in the economy as COVID-19 impacts have subsided.
Turning to slide 18, we have total operating expense <unk>.
Total expense for the fourth quarter was $52 6 million in the predecessor period and $86 million and the successor period.
Speaker 4: Total expense for the fourth quarter was $52.6 million in the predecessor period and $86 million in the successor period.
Speaker 4: As I mentioned earlier, operating expense this quarter included $43.3 million in the predecessor and $49.1 million in the successor period of expense related to the closing of our business combination with VIH.
As I mentioned earlier operating expense this quarter included $43 3 million and the predecessor of <unk>.
$49 1 million and the successor period of expense related to the closing of our business combination with <unk>.
On slide 19, we have our key performance indicators.
Speaker 4: We look at the transacting accounts as an important metric to reflect activity on our overall platform from our B2B to C model.
We look at the transacting accounts is an important metric to reflect activity on our overall platform from our b to B to C model.
Speaker 4: These KPIs reflect the full breadth of how our capabilities are accessed across both partner and backed experience.
These kpis reflect the full breadth of our capabilities are accessed across both partner and backed experiences.
Speaker 4: whether through a community bank's trusted digital platform, to a large financial institution's loyalty storefront, or through the back desk.
Community banks trusted digital platform to a large financial institution loyalty storefront or through the back of that.
Transacting accounts across the <unk> platform were 867000 in the fourth quarter of 2021 up 13% year over year.
Speaker 4: Transacting accounts across the VAC platform were $867,000 in the fourth quarter of 2021, up 13% year-over-year.
Speaker 4: The fourth quarter of 2020 included a large number of promotional accounts, which elevated the transacting accounts in that quarter.
The fourth quarter of 2020 included a large number of promotional accounts, which elevated which elevated the transacting accounts in that quarter.
Digital ASIC conversions are a dollar weighted measure and more directly aligned to revenue growth.
Speaker 4: Digital asset conversions are a dollar-weighted measure and more directly in line to revenue growth.
This measure was up 34% year over year, which reflects the strong growth we saw in loyalty redemption.
Speaker 4: This measure was up 34% year over year, which reflects the strong growth we saw in loyalty redemption.
Crypto buy sell volume is currently a relatively smaller portion of the overall platform activity.
Speaker 4: Crypto buy sell volume is currently a relatively smaller portion of the overall platform activity.
We expect this to increase materially in the future.
Speaker 4: We expect this to increase materially in the future as we activate existing partners and build new partnerships.
As we activate existing partners and build new partnerships.
On slide 20, we thought it would be useful to provide some guidance for 2022.
Speaker 4: On slide 20, we thought it would be useful to provide some guidance for 2020.
Speaker 4: Note that our guidance assumes no further significant interruptions from the COVID-19 pandemic.
Note that our guidance assumes no further significant disruptions from the COVID-19 pandemic.
And any potential acquisitions are not included in our projections.
Speaker 4: and any potential acquisitions are not included in our projection.
Net revenue for the full year is expected to grow to $60 million to $80 million, an increase of approximately 50% to 100% compared to 2021 combined net revenue driven by.
Speaker 4: Net revenue for the full year is expected to grow to $60 to $80 million, an increase of approximately 50 to 100 percent compared to 2021 combined net revenue, driven by continued strength and loyalty redemption, an increase in new partnerships driving crypto, Thysel, and other activity in the second half of 2022, further diversifying our revenue over the course of 2022. We will adjust.
Strength in loyalty redemption.
Increasing new partnerships driving crypto by shell and the other activity in the second half of 2022.
Other diversifying our revenue over the course of 2022.
We will adjust our plan.
Speaker 4: needed according to observed business trends and additional opportunities that may appear.
Needed according to observe business trends and additional opportunities that may appear.
We plan to invest significant capital to grow our business and therefore, we will operate at a quarterly loss throughout 2022.
Speaker 4: We plan to invest significant capital to grow our business and therefore we will operate at a quarterly loss throughout 2020.
Speaker 4: That concludes my section on the financial results. I will now turn it back over to Gavin for his closing remarks.
That concludes my section on the financial results I will now turn it back over to Gavin for his closing remarks.
Thanks drew.
Speaker 5: As I mentioned at the start of our presentation, our focus remains on executing on our strategic plan.
As I mentioned at the start of our presentation, our focus remains on executing on our strategic plan.
Speaker 5: growing new partnerships and activating existing partnerships through our B2B2C go-to-market model.
Growing new partnerships and activating existing partnerships through our b to B to C go to market model.
Speaker 5: deepening relationships with our existing partners to enable new customer engagement opportunities.
Deepening relationships with our existing partners to enable new customer engagement opportunities.
Speaker 5: investing in products and capabilities to support existing and new partners.
Investing in products and capabilities to support existing and new partnerships.
Speaker 5: and evaluating and executing on potential expansion opportunities.
And evaluating and executing on potential expansion opportunities.
Speaker 5: We are well capitalized to execute on this strategic plan. As Drew mentioned, we ended the quarter with almost $400 million in liquidity, and we will use that to fund our diversified revenue growth.
We are well capitalized to execute on this strategic plan.
As drew mentioned, we ended the quarter with almost 400 million in liquidity and we will use that to fund our diversified revenue growth.
With that I'll turn it over to Anne to manage Q&A.
Speaker 5: With that, I'll turn it over to Anne to manage Q&A.
Thanks, Kevin lets move over to questions from the Investor community.
Speaker 3: Thanks, Gavin. Let's move over to questions from the investor community. We're excited to be using say technologies this quarter to engage more with our investors, particularly our retail shareholders. Leading into our Q&A session, we'll start by answering the top questions from say, ranked by number of votes. Given the great volume of questions we have seen, there are common themes. After that,
<unk> C technologies have quarter to engage more with our investor, particularly our retail shareholders.
Leading into our Q&A session, we will start by answering the top questions from Fe ranked by numbers, but it's kind.
Great dining the questions we have seen no common themes after that.
Speaker 3: we'll turn to live questions from the analyst community. Our first group of questions will be William K., Satish E., Kartik I., and others.
We will turn to live questions from the analyst community.
First a quick question William K E G.
E <unk> and others.
Speaker 3: They ask, what are some new partnerships the company is looking at by the end of 2022? Will you partner with large banks such as Bank of America, JPMorgan Chase and Wells Fargo? How about institutions such as Apple, Amazon and Google?
Okay.
They ask what are some new partnerships. The company is looking at by the end of 2020 tail. When you partner with large banks such as Bank of America, Jpmorgan Chase and Wells Fargo, how about institutions, such as Apple Amazon and Google.
Speaker 5: Thanks for the question. I'm happy to take that one. Our focus remains on signing new partners and deepening our relationships with existing partners. We have a strong pipeline of new partners seeking new ways to engage their millions of customers.
Thanks for the question I'm happy to take that one.
Our focus remains on signing new partners and deepening our relationships with existing partners. We have a strong pipeline of new partners seeking new ways to engage their millions of customers.
Speaker 5: Our use cases around crypto services, crypto rewards, payments, and loyalty are resonating with large partners.
Use cases around crypto services crypto rewards payments and loyalty are resonating with large partners and our reach through our current partners exceeds 100 million customers.
Speaker 5: and our reach through our current partners exceeds 100 million customers.
Speaker 5: As you can imagine, these partnership discussions are highly confidential, and we are focused on building this pipeline as the year progresses. We also have relationships with many of the institutions that will
As you can imagine these partnership discussions are highly confidential and we come to staff focused on building. This pipeline as the year progresses. We also have relationships with many of the institutions that will.
You mentioned repower loyalty programs for many of the top banks in the country Apple as a key partner for us as well as our storefront enable consumers to redeem rewards points to their products.
Speaker 5: mentioned. We power loyalty programs for many of the top banks in the country. Apple is a key partner for us as well, as our storefronts enable consumers to redeem rewards points for their products.
Speaker 5: We're excited about these existing relationships and will continue to explore ways to provide even more value to our partners and their customers.
We're excited about these existing relationships and we will continue to explore ways to provide even more value to our partners and their customers.
Our next question comes from Travis Steed. He wants to know if that will be buying any crypto and holding it as an asset.
Speaker 3: Our next question comes from Travis D. He wants to know if BAC will be buying any crypto and holding it as an asset for investment.
Thanks, I'm happy to take that question.
Speaker 4: Bitcoin and Ether are held in custody for institutional customers, or we execute back-to-back transactions for consumers.
Bitcoin and either are held in custody for institutional customers or we execute back to back transactions for consumers, we keep a small amount of bitcoin and either as treasury stock to facilitate consumer transactions. When the markets are closed and back to back transactions are possible.
Speaker 4: We keep a small amount of Bitcoin and Ether as treasury stock to facilitate consumer transactions when the markets are closed and back-to-back transactions aren't possible.
Speaker 4: We're still considering how to invest the proceeds from our recent deal funding, and we may consider holding more crypto as an investment.
We're still considering how to invest the proceeds from our recent deal funding, we may consider holding more crypto as an investment.
Speaker 4: We are exploring extending margin based on these holdings for consumers and businesses as well.
We are exploring extending margin based on these holdings for consumers and businesses as well.
Thanks, Tim next Rajiv S F.
Speaker 3: Thanks, Drew. Next, Reggie S. asks, what would be the main focus for FACT in 2022? Getting more partnerships or activating existing partnerships in production, or for both? Gavin, do you want to take this one?
What would be the main focus for it back in 2020 to getting more partnerships or activating existing partnerships in production.
Kevin do you want to take this one.
Speaker 5: Yes, sure. Well, really, it's all of it. We outlined
Yes sure.
Really it's all of it we outlined.
Building out and activating cost.
Speaker 5: partnerships, deepening relationships with our existing partners, investing in products and capabilities to support existing and new partnerships, and executing on existing standards.
On a ship deepening relationships with our existing partners investing in products and capabilities to support existing and new partnerships and executing on it.
Expansion opportunities.
Speaker 5: These continue to be our focus going forward and through the balance of the year, you'd expect to see us activate many of our new and existing partnerships and capabilities and bring on more partners to continue to drive growth on the platform.
These continue to be our focus going forward and through the balance of the year, you would expect to see us activate many of our new and existing partnerships and capabilities and bring on more partners to continue to drive growth on the platform.
Speaker 3: Thanks, Gavin. Next, we received a number of questions around competition from Jason D, Shariah K, and others. They ask, as crypto becomes more widely accepted, many new businesses are starting to pop up in this industry.
Thanks, Kevin next we received a number of questions around competition from Jason D <unk> and others.
As Chris Terrill becomes more widely accepted many new businesses are starting to pop up in this.
Great question, we believe our platform is uniquely positioned to help these businesses institutions and brands offer.
Speaker 5: We believe our platform is uniquely positioned to help these businesses institutions and brands offer.
Tripped up in ways that make sense for their business model and customers.
Speaker 5: There are many recent examples of companies who are starting to offer crypto buy-sell, and we know the competition in this space is increasing.
There are many recent examples of companies who are starting to offer crypto by itself and we noted the competition in this space is intense.
Our differentiator lies with our platform at the intersection of crypto royalty and payments.
And our B to B to C go to market model.
Speaker 5: Importantly, the connection points between these capabilities help us to really create innovative products that we take to our partners.
Importantly, the connection points between these capabilities help us to really create innovative products that we take to our partners crypto.
Crypto rewards and Cryptos payouts and disbursement are key examples of this.
And we're seeing strong traction in our pipeline with the conversations that we have underway.
Speaker 5: And we're seeing strong traction in our pipeline with the conversations that we have underway.
Speaker 5: Importantly, our B2B2C model allows us to scale more efficiently and at a lower cost than a direct-to-consumer model. So we will continue to leverage this unique positioning and the backing of our secure, stable platform to innovate and expand on our product offering appropriately.
Importantly, our base a b to C model allows us to scale more efficiently and at a lower cost than the direct to consumer model. So we will continue to leverage this unique positioning and the backing of a secure stable platform to <unk>.
Innovate and expand on our product offerings appropriately.
Speaker 3: Next up, we received some questions about the employee base from Isaac C. and others. Can you talk about the focus of the team and our locations across the country?
Next step will receive some questions about their employee base from Isaac fee and others can you talk about the focus of the team and our locations correct country.
Our people are truly at the core of what we do and we have a great team with expertise across fintech crypto payments and loyalty to execute on that vision.
Speaker 5: Our people are truly at the core of what we do and we have a great team with expertise across fintech, crypto, payment and loyalty to execute on our vision. People with strong experience in growing and scaling and running businesses.
People with strong experience in growing and scaling and running businesses.
We talked earlier in our presentation about having almost 600 employees.
Speaker 5: We talked earlier in our presentation about having almost 600 employees.
We've been very focused on bringing a new complementary talent and building up to the prior year.
Speaker 5: We've been very focused on bringing in new, complimentary talent and building out the prior year across a variety of talent pools across the country, from Scottsdale, to name a few.
It is a key talent pools across.
We got style to name a few.
We will continue to focus.
Because on expanding our team as appropriate to execute on our strategy and drive growth for the company.
Speaker 5: on expanding our team as appropriate to execute on our strategy and drive growth to the company.
The number of questions came in around the stock price specifically at Brandon CES why did your price tanked from $50 to $3 <unk>.
Speaker 3: A number of questions came in around the stock price. Specifically, Brandon C. asks, why did your price tank from $50 to $3? Drew?
Sure I can I can take this one while we actively monitor and we are aware of our stock prices fluctuates over time.
Speaker 4: Sure, I can take to this one. While we actively monitor and we are aware of our stock prices fluctuates over time, we have no control over the market price and do not intend to make it a practice to comment on it.
Control over the market price and do not intend to make it a practice to comment Donald.
Stock price reached its highest level in that.
October shortly after our transaction was completed which also tracked with the announcement of several key partnerships we.
Speaker 4: October , shortly after our transaction was completed, which I also tracked with the announcement of several key partnerships.
Speaker 4: We saw subsequent declines in the stock price, which we...
We saw subsequent declines in the stock price, which we've done.
Speaker 4: We've largely coincided with overall market volatility impacting stocks related to crypto, growth, tech, and D-SPAC.
We've largely coincided with overall market volatility impacting stocks related to crypto growth Tech and <unk>.
Speaker 4: In December , where our pipe shares were released to the market, we saw a larger decline, which we in part attribute to related selling activity and an almost 3x increase of available float.
In December where pipe shares were released to the market. We saw a large decline, which we attribute to related selling activity and then almost three X increase of available float.
Speaker 4: All of this said, we continue to be excited about the future and executing on our vision. We are laser-focused on the near-term activities to drive future growth in our country.
All of this said we continue to be excited about the future and executing on our vision. We are laser focused on the near term activities to drive future growth in our company.
Speaker 3: Next, we have a number of marketing-themed questions. Investors want to know, will they start to see it back in commercials and advertising? What is the plan to get back out there and more widely known?
Next we have a number of marketing theme question investors want to know well they start to see it back in commercials in advertising, but as the plants get back out there and more widely known.
And I'll take that one.
Speaker 5: And I'll take that one. A marketing strategy aligns with our business strategy. We are focused on investing marketing dollars in the following areas.
Our marketing strategy aligns with our business strategy, we are focused on investing marketing dollars in the following areas basically where we are building our content and product marketing campaigns against that coal products and rolling out those products through our activations in <unk>.
Speaker 5: B2B, where we are building out content and product marketing campaigns against our core products and rolling out those products through our activation in 2022. We're working on consumer facing incentives delivered through our partners, you know, bonus points or crypto for their first transaction.
'twenty two.
Working on consumer facing incentives delivered through our partners.
Bonus points or crypto others for their first transaction.
Speaker 5: consumer-facing digital marketing.
Consumer facing digital marketing.
Speaker 5: with a focus on testing incentives and messages that we believe will help us with partner activation and case studies.
With a focus on testing incentives and messages that we believe will help us with partner activation and case studies.
Speaker 5: And then finally, we're also exploring brand sponsorships with partners who can help us drive awareness and activate core elements of our business model around crypto, rewards, and payment.
And then finally, we're also exploring brand sponsorships with partners, who can help us drive awareness and active as a core element of our business model around crypto rewards and payments.
Next we have a few questions around the regulatory landscape.
Speaker 3: Next, we have a few questions around the regulatory landscape. Sofon K. asks, how will the incoming crypto regulation announcement coming from the Biden administration affect your future plans and growth?
He asked how will the incoming crypto regulation announcement coming from the bite and administration affect your future plans on the graph.
Another great question from the virus.
Speaker 5: At the very beginning, Vax has always prioritized safety, security, and compliance as the cornerstones of its products and services.
Turning beginning back to always prioritize safety security and compliance as the cornerstones of its products and services.
None of that has changed the attention on the crypto space from the White house and from regulators at a greater regulatory clarity will benefit disciplined players in the crypto ecosystem.
Speaker 5: None of that has changed. Increased attention on the crypto space from the White House and from regulators at a greater regulatory clarity will benefit disciplined players in the crypto ecosystem.
Yeah.
So we continue to expand our platform we will do so with the same emphasis on compliance that we've always had.
Speaker 5: If we continue to expand our platform, we will do so with the same emphasis on compliance that we've always had.
We have time for one more question from the state platform.
Speaker 3: We have time for one more question from the FAA platform. A few investors would like to know about our plans to expand internationally.
Athene investors would like to know about our plans to expand internationally.
Our primary focus is to leverage our partnerships to scale our business first in the U S.
Speaker 5: Our primary focus is to leverage our partnerships to scale our business first in the U.S.
Speaker 5: We believe saying focus on execution initially is critical to the achievement of our long term strategy and will provide us with opportunities to expand later down the road.
We believe staying focused on execution. Initially is critical to the achievement of our long term strategy and will provide us with opportunities to expand later down the road.
That being said, we are being really thoughtful about building relationships with new partners and our platform allows us to scale for the right opportunities.
Speaker 5: That being said we are being really thoughtful about building relationships with new partners and our platform allows the scale for the right opportunity.
Speaker 5: Many of our existing partners have strong international capabilities, so over time we will evaluate together the potential for international expansion through these partners.
Many of our existing partners had strong international capability.
Over time, we will evaluate to gander that potential for international expansion through these partners.
Thank you and with that I would now like to turn the call back over to the operator to open up the phone lines to take questions from the analyst community.
Speaker 3: Thank you. And with that, I would now like to turn the call back over to the operator to open up the phone line to take questions from the analyst community.
Thank you. Thank you I'd like to ask a question today. Please press star.
Speaker 2: Thank you. If you would like to ask a question today, please press star.
Followed by one on your telephone keypad application that's going a question. Please press star followed by Kim pairing to ask your question Stephen Chau Youll sign is Amit lately.
Speaker 2: star followed by 1 on your telephone keypad. If you choose to withdraw your question, please press star followed by 2. When preparing to ask your question, please ensure your phone is unmuted locally. And our first question today comes from Trevor Williams of Jefferies. Trevor, please go ahead, your line is open.
And our first question today comes from Trevor Williams of Jefferies.
Please go ahead your line is open.
Speaker 6: I wanted to ask on the revenue guide for the year, just between all of the new partner wins and what I'm assuming you guys have.
Great. Thanks, Good morning, guys wanted to ask on the revenue guide for the year just between all of the new partner wins and what I'm, assuming you guys have.
Speaker 6: In the pipeline that you're expecting to convert, just kind of what level of visibility do you have into the $60 million to $80 million in terms of what you might consider being already booked, how much growth do you need from the existing basic partners you have versus new wins to get into that range, really just trying to understand what needs to happen to be at the low end or the high end of the range and help you out with grades.
And the pipeline that youre expecting it expecting to convert.
What level of visibility you have into the $60 million to $80 million in terms of.
What you might consider being already booked how.
How much growth do you need from the existing base of partners you have versus new wins to get into that range really just trying to understand what needs to happen to be at the low end or the high end of the range any help there great. Thanks.
Speaker 4: Yeah, sure. Absolutely. Trevor, this is true.
Yes, sure absolutely Trevor this is Jerry.
The way that the guidance is set up we're going to ramp throughout the year in terms of revenue growth. So the early part of the year, it's really going to be our existing portfolio of partners and new partners that we've already announced wrapping in and on top of that in the back half of the year. There is an expectation that will continue.
Speaker 4: The way that the guidance is set up, we're going to ramp throughout the year in terms of revenue growth. So the early part of the year is really going to be our existing portfolio of partners and the new partners that we've already announced wrapping in.
Speaker 4: And on top of that, in the back half of the year, there's an expectation that we'll continue to sign partners, execute on them, and have revenue growth related to those. In particular, in the, you know, the newer products, crypto, buy, sell, and other products as well. So there is embedded in there an expectation of continued growth in partners and executing on the model that we've articulated over the course of the year.
Deciding partners executed on them and have revenue growth related to those in particular in the.
The newer products crypto by cell.
Their products as well. So there is there isn't there is embedded in there an expectation of continued growth in partners and executing on the model that we've articulated over the course of the year.
Okay perfect that makes sense and then just on your transacting accounts I think the initial guide.
Speaker 6: Perfect. That makes sense. And then just on your transacting accounts, I think the initial guide had been for 9 million active users by the end of year one post-close. I'm just curious if there's any updated thinking on that for 2022 and any initial takeaways now that you've been in the market for a few months co-marketing with the existing partner base. Just anything there that stood out so far on that front would be great. Thank you. Yeah, sure.
It had been for 9 million active users by the end of the year. One post close just curious if there's any updated thinking on that for 2022.
And any initial takeaways now that you've been in the market for a few months co marketing with the existing partner base just anything there that stood out so far on that front would be great. Thank you.
Yeah sure I'll take the first part of that and I think it's in terms of transacting accounts versus users which were.
Speaker 4: In terms of transacting accounts versus users, which was in the original merger model, we've changed the metric, and I think we talked about this last quarter, but I'll reiterate for everyone. We've changed the metric because transacting accounts really captures the activity across the entire platform. And on top of that, it's more of a metric of users that is linked to active revenue activities versus
In the original merger model, we've changed we have changed the.
The metric and I think we've talked about this last quarter, but I'll reiterate for everyone. We've changed the metric because transacting accounts really captures the activity across the entire platform and on top of it. It's more of a metric of users that is linked to active revenue activities versus a use.
Speaker 4: You know, users who sign up for an app and given the app is still very important to us.
To sign up for an App and given the App is still very important to us.
Speaker 4: but some of our new partnerships that we've announced may not transact primarily through the app.
Some of our new partnerships that we've announced may not transact primarily through the app.
Speaker 4: the transacting account metric becomes, I think, much more relevant for investors going forward.
The transacting account metric becomes I think much more relevant for investors going forward.
Speaker 4: We obviously think guide on transacting accounts and there will be a lot of volatility in where that number ends over the course of the year. We certainly expect it to grow rapidly, but depending on when partner implementations happen, how many new partners we sign, and what the customer ramp curve looks like, there can be some variability in that number going forward.
We obviously guide on transacting accounts, and there will be a lot of volatility and where that number ends over the course of the year, we certainly expect it to grow rapidly, but depending on when the partner implementations happen, how many new partners, we signed and what the customer ramp curve looks like now there can be some variability in that number going forward.
Speaker 4: But the plan is absolutely to grow that number at a rapid pace in line with what we've discussed previously.
But the plan is absolutely to grow that number at a rapid pace.
In line with what we've discussed previously.
Okay, perfect that makes sense.
Speaker 2: Thank you. And our next question today comes from Owen Liu of Oppenheimer. Owen, please go ahead. Your line is open.
Thank you and our next question today comes from Alan Leong of Oppenheimer. Please go ahead. Your line is open.
Speaker 4: Thank you and good morning and thank you for taking my question. Could you please add a little bit more color on how you want to enable an open loop crypto wallet? How is it going to be different from the open loop platform offered by other crypto companies? Thank you.
Thank you and good morning, and thank you for taking my question.
Could you please add a little bit more color on how you want to in April .
Open loop crypto wallets.
Is it going to be different from the open loop platform offered by other crypto companies. Thank you.
Hey, good morning. Thanks.
Speaker 5: Hey, good morning, Owen and Gavin. Thanks for the question. So when we think about the way in which we are establishing our ecosystem, we see requests from our partners to be able to work in a hybrid environment. So we see some that want to be able to offer an open loop, to be able to allow people to bring their crypto into their environment.
Thanks for the question. So when we think about the way in which we are establishing our ecosystem. We see requests from our partners to be able to work in a hybrid environment. So we see some that want to be able to offer an open loop to be able to allow people to bring that crypto into their environments.
But well have that.
Speaker 4: But while they have that ability, they want to be able to control how that crypto flows through their ecosystem. So you can imagine us working with banks who want to be able to allow their customers who already have existing crypto holdings to bring it into their offering.
<unk> ability and wanted to be able to control how that crude both flows sort of their ecosystem. So you can imagine us working with the banks, we want to be able to allow customers, who already have existing tripping whole crypto holdings to bring it into their offering.
Speaker 5: but then to be able to have them control a little bit more about how that coin gets used.
And to be able to have better control a little bit more about how that coil gets used. So we think we're in a unique position to be able to offer a full spectrum of offerings for those the one completely open loop is what we've been talking about this morning versus those who want to be able to create new and innovative.
Speaker 5: So we think that we're in a unique position to be able to offer a full spectrum of offering for those that want a completely open loop, is what we've been talking about this morning, versus those that want to be able to create new and innovative...
The solutions and really attract the customers that have existing crypto holding somewhere else into their environment and the way the platform has structured without custodial services underpinning that we believe we are in the decision to offer that.
Speaker 5: solutions and really attract back the customers that have existing crypto holding somewhere else into their environment. And the way the platform is structured with our custodial services underpinning it, we believe we're in a huge position to offer that.
Speaker 4: Cario, in terms of the cash spending guidance in 2022, could you please talk about the key area of investment? Is it related to product development or personnel or tech or infrastructure or compliance? How much of that is non-recurring?
Got it.
That's very helpful. And then maybe in terms of the cash spending guidance in 2022.
Could you. Please talk about the key area of investment as it related to product development personnel or tech and infrastructure or our compliance how.
How much of that is.
Maybe nonrecurring thank you.
Yes, yes, absolutely and the answer is yes, yes, yes, and yes, but to give you a little more detail.
Speaker 5: Yeah, yeah, absolutely. And the answer is yes, yes, yes, and yes. But to give you a little more detail, it's that there will be investment in headcount, both for sales and tech development over the course of the year, there will be a ramp in marketing spend over the course of the year for implementing and co-marketing with new partners and driving users to the platform.
And there will be investment in head count both for sales and Tech development over the course of the year there will be a ramp in marketing spend over the course of the year for implementing and co marketing with new partners in driving users to the platform.
Speaker 5: The product development, there will definitely be a ramp. I think that ramp is actually happening now, and then I think the product roadmap over time as it continues to evolve will determine if that is.
The product development and will definitely be a ramp I think that ramp will actually is actually happening now and then I think the product roadmap over time as it continues to evolve we'll determine if that is.
Speaker 5: is more of a higher spend and we level off or if we should continue to invest and to continue developing new products.
As more of a higher spend and we level off or if we should continue to invest and to continue developing new products.
So thats why theres some theres some.
Speaker 5: with or there's some range in terms of the guidance of how much cash we're going to use this year. And I would say as we see opportunities in front of us that maybe we don't have visibility to right now, we would certainly invest even more in exciting opportunities if we saw the opportunity to do that. So we raise this cash to invest heavily in the business and grow it rapidly. We're certainly not going to shy away from opportunities to use the cash to generate a shareholder return in the future.
Or is there some range in terms of the guidance of how much cash we're going to use this year and I would say as we see opportunities in front of us that maybe we don't have visibility to right now.
Thirdly invest even more exciting opportunities if we saw the opportunity to do that so we raised this cash to invest heavily in the business and grow it rapidly.
We're certainly not going to shy away from from opportunities to use the cash to generate shareholder returns in the future.
Got it if I may just add one more quick one which is can you. Please give us an update on the progress of activating your partnerships such as Mastercard and Pfizer are what are the remaining hurdles. Thank you.
Speaker 5: If I may add one more quick one, which is, can you please give us an update on the progress of activating your partnerships such as MasterCard and Visor, what are the remaining hurdles? Thank you.
So look I'll take that one as we said in the presentation, we're making really strong progress on the.
Speaker 4: As we said in the presentation, we're making really strong progress on the ability for us to be able to work with these platform partners that we announced in Q4. As we're working with them, we're finding and seeing some terrific expansive opportunities. We mentioned what the work we're doing with Finestra to embed our capabilities into their banking platform. You're seeing fruits from the FICO relationship already. And then a MasterCard, we're really working to closely enable this passive acquisition of cryptocurrency, this notion of crypto reward.
<unk> for us to be able to work with these platform partners that we announced in Q4.
And we're working with the finding and seeing some terrific expense of opportunities. We mentioned by the work we're doing with finesse strictly data capabilities into their banking platform, you'll see fruits from the Pfizer relationship already and then amongst because we're really working closely enable this passive acquisition of crypto currency.
This notion of crypto reward we've already built the core foundation for the reward of this functionality and we're really focused on establishing that connectivity with the work.
Speaker 5: We've already built the core foundation for the rewards functionality and we're really focused on establishing the connectivity with the work that we're doing in conjunction with MasterCard to be able to use them as a distribution partner.
We're doing in conjunction with Mastercard to be able to use them as a distribution partner.
Speaker 5: We're also working to continue to drive the ability for us to attract partners through our B2B2C model. We're working very closely with them to be able to bring our capabilities. And remember, our partners have an addressable market of well over 100 million users.
We're also working to continue to drive the ability for us to attract partners throughout b to B to C model.
We're working very closely with them to be able to bring our capabilities and remember our partners have an addressable market of well over 100 million users and that's what we're aiming to leverage as we think about these integration points with finance drug with <unk> and with Monster Cup.
Speaker 5: And that's what we're aiming to leverage as we think about these integration points with Finestra, with Fiserv and with Mastercard.
Thank you Kevin.
Thank you as a reminder, that staff by one no telephone keypad, if you'd like to ask a question Charles.
Speaker 2: Thank you. As a reminder, that style, fill it by one on your telephone keypads if you would like to ask a question.
Speaker 2: And our next question comes from Kevin Didd of HC Wainwright. Kevin, please go ahead, your line is open. Thank you.
And our next question comes from Kevin <unk>.
H C Wainwright Kevin. Please go ahead your line is open.
Thank you. Thank you its Kevin Dede H C Wainwright.
Speaker 5: I was hoping, Gavin, you could elaborate a little bit on your customer acquisition via partnerships. Is there a step involved in combining or taking your partners, customers, and adding them to your group?
I was hoping you could elaborate a little bit on your customer acquisition via partnerships is there a step involved in <unk>.
Combining or taking your partners customers and adding them to your group.
I know do reference transaction accounts I'm wondering if you could just sort of add a little color to that.
Speaker 5: And I know Drew referenced transaction accounts. I'm wondering if you could just sort of add a little color to that.
Yes sure good morning, Kevin Thanks for the question. So when we think about the way in which we work that you've heard us focus a lot on the repeatability of the platform that we're building that's important for the scale that drew was referencing so we expect to see impact of our partners in the second half of this year.
Speaker 4: Yeah, sure. Good morning, Kevin. Thanks for the question. So when we think about the way in which we're working, you've heard us focus a lot on the repeatability of the platform that we're building. That's important to the scale that Drew was referencing.
Speaker 4: So, you know, we expect to see the impact of our partners in the second half of this year. You know, we've really started to, as we announce the partners, as we bring them on board, we've focused very much on closing the gap between the announcement and then when we see the impact of them in our financials, and we expect to see that in the second half.
It really started as we announced the partnership we bring them on board with focused very much on closing the gap between the announcement and then when we see the impact of them in our financials and we expect to see that in the second half when we think about the work that we're doing to enable our partners we.
Speaker 4: When we think about the work that we're doing to enable our partners, we're not just providing with the technology backbone to be able to execute the services that we're working with them, whether they be on the crypto by cell side, whether it be through the crypto rewards work that we're doing, or the newer pieces that we've been talking about with the payout and the disbursements of crypto. We're also providing them with marketing, with customer care, with the ability for them to be able to educate their customers.
We're not just providing the technology backbone to be able to execute the services that we're working with them whether they be on the crypto by sell side, whether it'd be through the crypto rewards work that we're doing or the newer pieces that we've been talking about the payout and the disbursements of crypto, we're also providing them with marketing with customer.
Ted.
Ability to the entry of the engine.
The customers because the partners, we're working with are deploying our services to be able to deepen the relationships that they have with their existing customers and they see this as a key acquisition moments the bank covenant grow their businesses. So we expect to be able to see the impact of these partnerships in the latter half of this year.
Speaker 4: because the partners we're working with are deploying our services to be able to deepen the relationships that they have with their existing customers. And they see this as a key acquisition moment for them to be able to grow their business.
Speaker 4: So we expect to be able to see the impact of these partnerships in the latter half of this year, but we're also working to create something that is scalable and repeatable, so that as the partners start to get announced, we start to reduce the barrier to entry into our ecosystem. And a lot of the work that Drew was referencing in terms of the investments have really been focused on making that happen.
But we're also working to create something that is scalable and repeatable so that as a positive start to get announced we start to reduce the barrier to entry into our ecosystem and a lot of the wells drilled was referencing in terms of the investments have really been focused on making that happen.
Okay. So.
Speaker 5: When a partner bank joins, do those customer accounts become BACs customer accounts as they start to execute?
A partner Bank James <unk>.
<unk> customer accounts become backs customer accounts is as.
As they start to execute.
Okay.
And then one.
Speaker 4: Exactly, sir. That's exactly the model. Exactly the model.
Okay.
Exactly in the model.
Our motto.
Okay.
Speaker 5: Crew, I know you touched on this a little bit, but you just went on to discuss the difference between users and transactional accounts. Did you have an update on the current level of transactional accounts now and how that may have changed since the end of the year?
I know you touched on this a little bit.
Got you.
<unk> discussed the difference between users and transactional accounts did you have an update on the current level of transaction accounts now and how that may have changed since the end of the year.
Speaker 4: Yeah, the transacting accounts are in the presentation. We had 867,000 transacting accounts in the quarter. So those are users that have done a transaction on the broader PACT platform.
Yes, the transacting accounts are in the presentation, we had 867000.
Transacting accounts in the quarter. So those are those are users and have done a transaction on the broader <unk> platform.
Do you monitor that can deploy.
Speaker 5: Good. Yeah. Apologies. Apologies. Do you monitor how those transactional accounts change in terms of.
Okay.
Apologies apologies do monitor how those transactional accounts.
Change in terms of.
Speaker 5: size and use of the back platform.
Size and use of the BACS platform.
Yes, yes.
Speaker 4: Yes, yes, we I mean, we see how many of them are doing loyalty redemption, how many of them are doing, you know, crypto by cell, you know, all the different activities.
See how many of them are doing loyalty redemption, how many of them are doing crypto by cell.
<unk>.
All the different activities.
Speaker 5: Do you think you'll offer at some point a metric, a KPI, that represents how each, you know, how the, I guess, maybe the average transactional account.
Do you think <unk> offer at some point.
A metric API that represents.
<unk>.
Each.
I guess, maybe the average.
Transactional account increases.
You mean in terms of let's call it the notional the notional amount of the transaction that.
Speaker 4: You mean in terms of let's call it the notional amount of the transaction that
Speaker 5: So for example, if you look at the other KPI, the digital asset conversion volume, that's the notional amount of transaction that's happening. So you could actually take those numbers and divide it to, and I'm not saying that's an exact way to do it, but you would get a relative scale of the notional transaction amount that is happening. And there's certainly seasonality to that number as well. So please just keep that in mind as you're...
What you're referring to so for example, thank you.
So for example, if you look at the other Kpis digital asset conversion volumetric, but notional amount of transaction that happening so you could.
You could actually take those numbers and divide the two and im not saying Thats, an exact way to do it but you would get a relative scale of the notional transaction.
That is happening and there is certainly seasonality to that number as well. So please just keep that in mind mature.
Speaker 5: working that map. You understood I was trying to trying to drill in and somehow come to some sort of an RP like metric.
Where can that they understood I'm, just trying to trying to drill in and somehow come to some sort of an ERP like metric.
Yes, yes, yes.
Speaker 4: Yeah, we're now on our first quarter of officially reporting as a public company, and we're moving into growing a new part of our business. So I think over time as that is occurring, we'll consider which KPIs provide the best information on performance as we evolve on that front.
Yes, and I think we're now on our first quarter of officially reporting as a public company and we're moving into growing the new part of our business. So I think over time as that is occurring we will consider what which kpis upfront.
By the best information on our performance as we evolve on that front.
Speaker 5: So Gavin, maybe a little more detail on the banks you announced in the December quarter, Valiant, Hanover, Manasquan. Were those sought through your marketing efforts?
So Kevin maybe a little more detail on the banks, you announced and in the December quarter Valeant San over minus one.
Were those.
Through your marketing efforts.
Speaker 5: Or they come to you through Fiserv, and can you talk a little bit about how you've been able to integrate them into the VAC platform, or vice versa?
Or they come to us through <unk> and can you talk a little bit about how.
<unk> been able to integrate them into the <unk> platform or vice versa.
Sure Kevin.
Speaker 7: Yeah, sure, Kevin. Look, at the moment, we have two routes to market. We work through our platform partnerships, and we work direct. The ones that we're talking about right now have been coming through our partnership relationship.
We have two routes to market, we worked through our platform partnerships and we work through the ones that we're talking about right now have been coming through our partnership relationships. When we think about the way that we work with noting a repeatable set of processes that allow us to embed our capabilities in digital banking.
Speaker 4: When we think about the way that we work, we're building a repeatable set of processes that allow us to embed our capabilities in their digital banking application.
Patients. So as you saw in the chart that we showed at <unk>.
Speaker 7: So as you saw in the charts that we showed, an illustrative example of what that experience looks like. So you'll be able to see your crypto balances sitting right next to your check accounts, to your savings accounts. And we're driving to build a set of surrounding processes in terms of marketing, user education, and customer care to be able to help banks like Manasquan, Valiant, Hanover scale quickly and bring customers into the new offering.
Illustrative example of what that experience looks like so you'll be able to see your crypto balances sitting right next to your checking account savings account.
Driving to build a set of surrounding processes incentive marketing user education and customer care, rather the health plan managed cloud Valeant Hanover scale quickly and bring customers into the new offering.
Yeah.
Speaker 5: Okay, fair enough, fair enough. Can you talk about the tokens on your platform and how you decide?
Okay fair enough fair enough.
Can you talk about the tokens on your platform.
<unk>.
How do you decide.
Speaker 5: Which ones you can support? Are they strictly just the green-listed ones? And what sort of designs do you have on increasing the number that you accept?
And as you can see here are they strictly just agreements did ones and what sort of designs do you have on increasing the number that you accept.
Yeah, Kevin Thanks to the continued dialogue, we mentioned that we are improving and increasing the exposure beyond.
Speaker 7: Yeah, Kevin, look, thanks for the continued dialogue. We mentioned that we are increasing the exposure beyond Bitcoin and Ether that are on our platform today. We have to work in conjunction with our regulatory approval processes. So the green list plays a very important role in what we do. And we're looking for coins and tokens that have sufficient liquidity and demand in them.
Big coin and you said that are on our platform today, we have to work in conjunction with our regulatory regulatory approval processes. So the Greenwood plays a very important role in what we do and we're looking for coins and tokens that have sufficient liquidity and demand deem them to be used by all.
Speaker 7: to be used by our partners, but we also recognise that our partners and our platform need to provide consumer choice and convenience.
Our partners, but we also recognize that our partners and our platform needs to provide consumer choice and convenience and using our safe and secure our regulated platform to make those available seems like the right direction for our product to move it hence the announcements this morning.
Speaker 7: and using our safe and secure and regulated platform to make those available seems like the right direction for our product to move in, hence the announcement this morning.
Thank you for your questions. We have no further questions from the line, so I'll hand that over to <unk> for any closing remarks.
Speaker 2: Thank you for your questions. We have no further questions on the line, so I'll hand back over to Anne DeVries for any closing remarks.
Great. Thank you everyone for attending our earnings call. This morning, we look forward to connecting with you again soon.
Speaker 3: Great. Thank you everyone for attending our earnings call this morning. We look forward to connecting with you again soon.
Thank you ladies and gentlemen. This concludes today's call. Thank you for joining you may now disconnect your lines.
Speaker 2: Thank you, ladies and gentlemen. This concludes today's call. Thank you for joining. You may now disconnect your line.
Yeah.
Speaker 1: The.
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Yes.
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Sure.