Earnings call transcript: Exodus Movement Q1 2025 sees record revenue but misses forecast

Exodus Movement Inc. (EXOD) reported a record first-quarter revenue of $36 million, marking a 24% year-over-year increase. The company missed its revenue forecast of $38.26 million, contributing to a 13.7% drop in its stock price during after-hours trading. This volatility aligns with InvestingPro data showing EXOD’s beta of 3.42, indicating higher market sensitivity than average. Despite the revenue miss, the company highlighted growth in its exchange provider process volumes and product innovations. According to InvestingPro analysis, EXOD currently appears overvalued compared to its Fair Value.

Key Takeaways

• Exodus achieved its highest-ever Q1 revenue, with a 24% increase year-over-year.
• The company missed its revenue forecast, leading to a 13.7% stock price drop in after-hours trading.
• Exchange provider process volumes grew by 62% year-over-year.
• The company launched Echo, a new PassKeys wallet technology demo.
• Monthly active users declined by 30% sequentially.

Company Performance

Exodus Movement’s Q1 2025 performance was marked by significant growth in several areas, despite missing revenue forecasts. The company recorded its highest-ever Q1 revenue, driven by a 62% increase in exchange provider process volumes. However, the decline in monthly active users and the revenue miss weighed on investor sentiment.

Financial Highlights

• Revenue: $36 million, a 24% increase year-over-year.
• Exchange provider process volumes: $2.1 billion, up 62% year-over-year.
• Digital and liquid assets: $238 million.
• Bitcoin holdings: 2,038 Bitcoin.

Earnings vs. Forecast

Exodus reported Q1 revenue of $36 million, falling short of the $38.26 million forecast. This represents a revenue miss of approximately 5.9%, which may have contributed to the negative market reaction.

Market Reaction

The company’s stock fell 13.7% to $46.86 in after-hours trading, reflecting investor disappointment with the revenue miss. This reaction underscores the market’s sensitivity to forecast deviations, even amid strong year-over-year growth.

Outlook & Guidance

Exodus continues to focus on expanding its partnerships and exploring M&A opportunities. The company expects industry consolidation over the next 12-18 months and plans to enhance its marketing and user acquisition efforts.

Executive Commentary

CEO JP Richardson stated, "We believe everyone now and in the future will benefit from digital asset technology," emphasizing the company’s commitment to innovation. CFO James Grunetzky highlighted the potential for stablecoin market growth, stating, "Stablecoins are going to grow exponentially."

Risks and Challenges

• The revenue miss could signal challenges in meeting future forecasts.
• A decline in major cryptocurrencies like Bitcoin and Ethereum may impact investor sentiment.
• The 30% sequential decline in monthly active users poses a challenge for user retention and growth.

Q&A

During the earnings call, analysts inquired about the company’s partnership strategy with Ledger and Magic Eden, the dynamics of ExoSwap volume and revenue share, and the purpose of Echo as a technology demonstration. The discussions highlighted the company’s focus on strategic growth and innovation.

Full transcript - Exodus Movement Inc (EXOD) Q1 2025:

Elizabeth Shores, Host/Moderator, Exodus: Hi, everyone. Thanks for being here, and welcome to Exodus’ first quarter twenty twenty five earnings conference call. I’m your host, Elizabeth Shores, and with us today are Exodus’ cofounder and CEO, JP Richardson, alongside CFO, James Grunetzky. Now during today’s call, we may make forward looking statements. The company cautions investors that any forward looking statement involves risks and uncertainties and is not a guarantee of future performance.

Actual results may vary materially from those expressed or implied in the forward looking statements due to a variety of factors. These factors are described in forward looking statements in our earnings press release and our most recent Form 10 Q filed with the SEC, available on the Investor Relations portion of our website. We do not undertake any obligation to update forward looking statements. So you can feel free to visit our social media on X or Reddit to submit any questions you may have about this quarter to our Investor Relations team after today’s call. With that, we’re gonna turn it over to our CEO to walk us through the quarter.

JP, the floor is yours.

JP Richardson, Cofounder and CEO, Exodus: Thank you, Elizabeth, and thank you everyone for joining us today. I’m pleased to be here. Q one was our first full quarter of trading on the NYSE American, and Exxus delivered operational excellence, celebrating our second best quarter of revenue ever. First quarter revenues were $36,000,000, which is an increase of 24% year over year. The quarter is further validation of our innovative and user friendly crypto products that consumers trust and love.

Our products are designed to place value of crypto in the hands of everyone. We believe everyone now and in the future will benefit from digital asset technology even if they don’t know they are using crypto. Cryptorails are efficient, and they empower the consumer. Exos makes beautiful products to harness blockchain technology for the average consumer. A perfect example of this is Echo.

Echo is our product using our newest passkeys wallet technology. It is a demo product we created to highlight the power of our passkeys wallet solution. Echo enables crypto payments on the X platform, allowing anyone to send crypto to anyone with an X user handle with no need for complicated addresses or even for the recipient to have a wallet. In addition, since we’re using our PassKeys wallet technology, consumers don’t even have to worry about the hassle of a 12 word secret phrase. Echo also allows content creators to accept crypto tips from the communities they cultivate.

We created Echo simply as a demo, a demo that leverages gamification to grow the user base, and it has resulted in over 1,200,000 passkeys wallets being created to date. While we do not anticipate Echo itself having a material impact on our business, we are very pleased with the results of this demo. We plan on incorporating these lessons into future products on our road map. Moving on from Echo, our core product, Excess Mobile, is now faster and more beautiful. If you update to the latest version, you will see these updates.

Again, more bolder, more beautiful, and faster than ever and includes real time prices. Our aim is to create an emotional experiences for consumers, experiences that make them feel as if they are viscerally a part of the action happening in the market. And long term, our aim is to bring real world utility to consumers, to empower them, to leverage crypto, to bring utility in their daily lives. More on this in a future update. Let’s talk ExoSwap.

We’re excited about ExoSwap putting in a big quarter with approximately 30% of the q one swap volume, up from 19% in q four. As a reminder, ExoSwap is our multichain exchange aggregator technology bundled up and white labeled for other wallets and industry projects to take advantage of. Including two new partnerships signed in q one, we now have seven active partnerships and 13 signed partnership agreements. ExoSwap is a key revenue growth driver and positions us to further expand our market share. We expect its momentum to continue because adopting ExoSwap is a win win win, A win for Exodus, a win for our partners, and a win for our partners’ consumers.

Let’s talk a little bit about the industry and consumers using Exodus. You may have seen, but deal activity continued throughout the crypto ecosystem even as crypto prices took a step back throughout q one. Our industry stands to benefit from the more welcoming environment and the end of regulation by enforcement, especially in The United States. That said, the price of Bitcoin declined 12% in the quarter, and altcoins in particular recorded substantial losses. The price of ether decreasing 45% and Solana decreasing 34% in q one.

So certain markets were already looking a bit rough by the end of q one. Even before recent volatility around tariffs, these macroeconomic headwinds impacted overall monthly active users. To add some transparency and clarity around our user base, we have data data around quarterly funded users to our materials, and James will speak to QFUs shortly. On marketing, our marketing efforts continue to shine the spotlight on Exxus, and you’ll see us keeping a high profile by sponsoring key industry events such as the upcoming Bitcoin conference in Las Vegas with more such opportunities coming this year. The Bitcoin twenty twenty five conference in Las Vegas is a logical place for excess to have a strong presence as we have had a Bitcoin treasury strategy since our inception in 2015, except we are using our earnings to acquire more Bitcoin and crypto.

And with that, Exodus predates the current trend of corporate Bitcoin ownership with over 2,000 Bitcoin already on our balance sheet. Exodus is positioned to benefit while we remain poised to address the future opportunities we might come across. And not to mention, we pay 100% of our salaries in Bitcoin. Yes. You have to take your salary in Bitcoin to work at Exodus so you know we only have the most mission driven people working here.

Switching gears to our stock, Exod. Our stock trading at NICE Americana is off to a good start. Our liquidity has shown improvement over our OTC listing, and the exposure of this national exchange listing dramatically enhances access to capital markets and brings many opportunities for Exodus and our shareholders. Looking ahead, we’re encouraged by the prospects of regulatory clarity within The United States. We believe this will accelerate mainstream digital asset adoption.

Our proactive engagement with policymakers is designed to produce clear regulation that protects innovation. I personally have been participating in the trenches having been invited to the first White House crypto summit, contributing my feedback to the administration and other crypto industry players. I’ve also had the good fortune of being invited to other events with David Sachs and the president himself. These opportunities have allowed me to communicate what’s most important for us at Exodus. And as always, I’m incredibly grateful to all of you who have joined our journey.

Creating useful blockchain products requires a large community of users and a deep well of developers. Of course, there would be no earnings call without you, the investor, and we look forward to bringing you news and results for many quarters to come. Thank you again for your continued confidence and support. Exodus remains extremely optimistic about future growth prospects of our wallet. Our appetite for m and a activity and partnership pipeline provide additional paths to victory.

As we’ve said in the past, our strategies for driving performance and progress include growing and diversifying Exodus services, expanding our partnerships, and making selective additive acquisitions. We’ll continue to actively pursue these strategies. And now James is here to review our finances. James?

James Grunetzky, CFO, Exodus: Thanks, JP. From a financial perspective, the real highlight is that q one was our highest first quarter revenue ever recorded. And it was our second highest revenue ever. So with that, let me jump into some details. In Q1, revenue was $36,000,000 That’s a 24% increase compared to the same quarter last year.

As JP mentioned, macroeconomic events created headwinds that impacted the tail end of the quarter. We are no strangers to volatility at Exodus. Crypto markets historically have been the champions of volatility, actually. And Exodus has thrived over the last ten years by not just preparing for, but taking advantage of this volatility. A key example of leaning into that volatility is the exchange aggregation.

Crypto market volatility drives exchange aggregation and the volume generated from it, which was 94% of total revenue. ExoSwap partnership activity also saw substantial growth. ExoSwap is our exchange aggregator packaged for use by our partners in the crypto ecosystem. Despite being a new product fully launched just last summer, we received meaningful value from ExoSwap contributing 30% of Q1 volume, as you can see here, and 17% of the Q1 revenue. Now I’d also like to highlight that ExoSwap received a large boost from one of our partners who ran a very highly successful promotional campaign during Q1.

Now while this type of activity from our partners may cause lumpiness in the short term revenue we generate from our partnerships, it really highlights the power of the partnership model, where the success and marketing efforts of our partners help drive the success of ExoSwap, which in turn generates more revenue share for us and for our partners. So over the next few years, as we grow our partnership ecosystem, this lumpiness should decrease. Exchange provider process volumes for the quarter were $2,100,000,000 reflecting a 62% growth year over year and a 7% reduction sequentially, reflecting weaker short term conditions against longer term tailwinds of digital asset prices and the emergence of ExoSwap. Monthly active users were 1,600,000. This thirty day trailing metric is down 30% sequentially and 6% year over year.

The nature of the MAU metric is that it is monthly and it is a measure of activity. In months like March, financial market fatigue can have a dramatic impact on user activity. That does not mean that these users are gone for good. It simply means that in March, folks were not interested in looking at their portfolio. So to help provide a broader view, we have added quarterly funded users, or QFUs, to the presentation.

This metric has two important differences versus MAUs. First, it has a longer time horizon, so one or even two months of market fatigue have less impact. And second, it adds a funding component, which means that a user has actually taken some of their money and trusted it on our platform, and they were active in the quarter. So the level of trust of putting funds on our platform is very powerful, and it really cannot be overstated. And so with that lead in, you can see that quarterly funded users were 1,800,000.

That’s down 5% sequentially, but up 6% year over year. As we move on to Echo, our passkeys technology is demonstrated is a demonstration of how payments technology can be made. Very simple and so that people may not even know that, the underlying technology exists. So that Passkeek’s technology stitches together the biometrics of your phone with a seamless and secure crypto wallets and payments. This means payments no longer require a routing and account number if you’re doing direct deposit, a credit card number, with swipes, etcetera, or even a long Bitcoin address.

For example, pass keys enabled Echo, a cool piece of tech that we built that allows transactions to be sent on the X platform. Now Echo is more of a demonstration than a full fledged product line. In its current form, Echo is not currently a source of revenue for Exodus. Exodus. What Echo demonstrates is the adaptability of PassKey’s technology, while hinting at the countless potential use cases for our technology.

Our balance sheet remains strong with two thirty eight million dollars in digital and liquid assets, no debt and continued growth in our Bitcoin holdings, now totaling $20.11 Bitcoin as of March of this year. As a reminder, we’re early adopters of ASU 2020 three-eight, which means our digital assets are recorded at fair value. So note that the $238,000,000 was measured at the significantly lower prices we saw on March 31. At today’s prices, this would be closer to $280,000,000 A reminder that we have a Bitcoin treasury strategy, as JP mentioned, since our founding in 2015, and we receive the majority of our revenue, and we pay our largest expense, salaries, in Bitcoin. So internally, our treasury strategy is, for us, a reflection of our success.

So far in q two, we have seen bitcoin prices rebound, which has driven, volatility. Macro market uncertainty is still present, but markets are adjusting. Through April 30, we have seen $444,000,000 in transaction volumes. May is off to a solid start with Bitcoin back over $100,000 and increased excitement driving higher swap volumes. And as mentioned in previous calls, we continue to evaluate acquisition opportunities.

While I not have a specific transaction to discuss or announce at this point, I will say that inbound activity remains elevated, and we continue to believe that the industry will see consolidation over the next twelve to eighteen months. And as one of the few publicly traded crypto companies and with our strong balance sheet, Exodus is well positioned to participate in that consolidation. Shifting gears just a little bit, I’d also like to comment on something that has gotten a decent amount of attention recently, stablecoins. Stablecoins offer an easy to understand crypto use case, providing cheap, fast, and twenty four seven payments on the most modern of payment rails. Total stablecoin issuance is currently $243,000,000,000 according to DeFi Lama.

We see stablecoins as growing into a multi trillion dollar market as they steal share from fifty plus year old payment rails like SWIFT and Visa. The opportunity is large. SWIFT alone processed 11,000,000,000 transactions in 2022, the last year it disclosed any data, while Visa processed $13,000,000,000,000 of payments in 2024. Of course, in order to use stablecoins, you need a wallet. As a multichain wallet provider, Exodus is well positioned to take advantage of the growth of stablecoins.

We currently support all major stablecoins on multiple networks, and our PassKey’s technology makes creation wallet creation extremely easy, facilitating broader stablecoin growth. So in summary, Q1 leaves Exodus smartly positioned in the growing world of digital assets. We remain confident and excited about our strategic direction, and we hold a deep commitment to shareholders. As JP mentioned, we are looking to grow our core wallet through increased visibility into marketing, and we seek horizontal expansion through partnerships and vertical expansion through purposeful m and a activity. All of this while our developers at Exodus innovate relentlessly on future products.

And Elizabeth, with that, we’ll take some questions.

Elizabeth Shores, Host/Moderator, Exodus: Alright. Thanks, James. Lots to be excited about. Let’s check the queue to see if we have any questions. We do.

Hey, Bill. We have Bill Papasanaccio from KBW Bank. Take it away. You’re live.

Bill Papasanaccio, Analyst, KBW Bank: Yeah. Good evening, gentlemen, and congrats on another strong quarter. Thanks for taking my questions here. You know, the company is clearly making strong progress with the Ledger partnership. Hoping you could provide some commentary on how we could expect, you know, the cadence in the signing of additional partnerships trending, forward.

Thanks.

JP Richardson, Cofounder and CEO, Exodus: Thank you, Bill. Appreciate you being here. So, absolutely, the the Ledger partnership was was a great partnership for us to sign. In addition to that, the Magic Eden partnership as well. But but long term, we see our growth coming from additional partnerships.

So I would expect that in time, we will announce other big partnerships. All the big players out there, we are talking to them. The reality is is that a lot of these big players out there, they’ve built they’ve spent years cultivating and building up tens of millions of monthly active users, tens of millions of users. And so they also have a consumer base that they want to provide great products to that work really well like ExoSwap, but they also know that consumers depend upon them them for trust. So these conversations and deals take a long time to and and if I told you how long some of these other deals that we’ve already signed, I wouldn’t believe me, but they take a long time.

So while I’d love to say next quarter, you can expect all of these big partnerships, I can’t necessarily say that, but know that we are actively talking to all of the big players. And, again, we see this as a major growth driver for us because when you look at, like, let’s say, historically, a deal like Ledger, Ledger’s customers are really happy using the Ledger hardware wallet, and we’re not gonna build hardware wallets anytime soon. Actually, probably never. So but never say never, but probably never. So today, Ledger’s customers enjoy using Ledger.

And so the ExoSwap product allows us to build bring this swap technology to Ledger’s consumers. So we see this as a great way to grow our customer base while leveraging other wallets and other platforms’ audiences. So, again, look forward to more announcements about this in the future.

Elizabeth Shores, Host/Moderator, Exodus: Great insights, JP. Thank you, and thank you, Bill. Next up, we have Andrew Hart from BTIG. Go ahead, Andrew.

Andrew Hart, Analyst, BTIG: Hey. Can you hear me okay? Great. Thanks for the question. I guess maybe following up a bit on that last one.

I think the number in the quarter was 30% of volume was from Axoswap, which is up from 19% the prior quarter. And I think even the first two months of the quarter was about 23%, right? So I think it implies Axoswap volumes really accelerated in the back half in the last month of the quarter. Can you, James, just help us think about the different revenue contributions and gross margin contributions of in core aggregator versus Axoswap? And then broadly you know, more broadly, where do you see the mix of volume between ExoSwap and and, you know, core aggregation longer term?

Thanks.

James Grunetzky, CFO, Exodus: Sure. Yeah. So as mentioned in in the in the opening remarks, there was a highly successful campaign run by by one of our one of our partners, and that really drove some of that outsized performance in q one, you know, related to ExoSwap. You know, we’re we’re consistently working with all of our partners to understand, you know, when they might launch more campaigns and and understand things. But so but it is, you know, ultimately, it’s gonna be their decision and their user base that they’re they’re marketing to and, you know, building all of these different campaigns for.

So that makes it even in the short term, and I know you’d mentioned long term, but in the short term, it really makes it challenging for us to forecast, you know, ExoSwap, ExoSwap volume. ExoSwap volume in general, it’s off the you know, no matter what, there is a rev share component, a revenue share component, So it will be lower margin than our base exchange aggregator just by default. And then I think the last part of your question to answer long term. Yeah. Long term long term, you you could see a number of different variations.

You know, as we you know, if we have know, as we sign more and more partners in some of these larger partnerships, absolutely, it could mean a much larger contribution to our overall our overall or excuse me, our overall volume and revenue. However, you know, I I wouldn’t count out the base business and our users. You know, there’s you know, some of these sponsorships and some of this this marketing work that we’re we’re doing. So but it is a wonderful product, and, you know, it it is something that everyone who especially in terms of cross chain swaps, anyone who has, you know, a multi multi chain product that really needs our our ExoSwap product. So it’s there’s a there’s quite a market out there for it.

Elizabeth Shores, Host/Moderator, Exodus: Perfect detail, James. Thank you. And next, I see, Kevin Dede from H. C. Wainwright.

Go ahead. You’re up.

Kevin Dede, Analyst, H.C. Wainwright: Thank you. Thanks, JP. Great to see you again, James, And thank you for having me on, Elizabeth. Appreciate it. So I was wondering if you give us a little more color on the cross section of new partnerships that you’ve talked to.

I think you said you had seven signed or seven active and 13 new sign ups. And I I think the the big question really behind that is what are the makeup of those customers? What are they looking for? And how do you see them thinking or traditional finance thinking about incorporating crypto? And I think we talked about this the last time you guys reported.

But I just like, I just like to given, you know, a couple of months of the new administration, maybe your thinking has changed a little.

JP Richardson, Cofounder and CEO, Exodus: Thank you, Kevin. Yeah. So the these partnerships that we’re that we’re talking to and the ones that we’ve signed, it’s it’s it’s a mix from, like, some of the ones that you you might expect from from wallets to web three projects. But what it really comes down to, it’s it’s everybody is interested in supporting cross chain swaps. That that’s really what this comes down to.

Because before, we used to you know, way back in the day, it was all about, you know, Bitcoin only, Bitcoin only, Bitcoin only. And then Ethereum came and and created a great the world of Web three that we know and love and the world of DeFi. But then Solana came along, and and Bitcoin’s still still here as one of the major assets. So more and more chains are being created that bring more and more different sets of utility. But the reality is is that to build a multichain product, whether it’s a wallet or cross chain swaps or exchanges, is very difficult.

And so for a company like Excess to have this offering, something that we’ve done since 2015, provides a lot of confidence for these platforms to use the technology that we’ve already built. So that’s ultimately what they’re looking at, and we see more and more of this kind of demand. And and, I mean, we believe we’re we’re gonna see more wallets, not just focus on one chain, but really expand their offerings across multiple chains that will allow us to have more potential ExoSwap customers in the future.

James Grunetzky, CFO, Exodus: And and just to add on to that, I think the there is the other thing that I mentioned briefly in my remarks, was stablecoins. Stablecoins right now are on a number of different chains or networks. And, you know, there is no clear chain right now that has all of that stablecoin opportunity. So this and as I mentioned, stablecoins are going to grow exponentially, and no one knows for sure if there’s gonna be a winner. There almost certainly won’t be, however, and there will be a number of different stablecoins and a number of different chains for many years powering essentially the future of finance.

And so, you know, this our ExoSwap product is also well positioned from converting, say, USDC on Ethereum to, you know, USDT or Tether on Tron. So those are all things that we actively support right now and do very well.

Elizabeth Shores, Host/Moderator, Exodus: Great detail. Thanks, James and JP, and great question, Kevin. Let’s see. We have oh, Ed Engel from Compass Point up next. Thanks for being here, Ed.

You’re up. Just unmute and start talking.

JP Richardson, Cofounder and CEO, Exodus: Yeah. We we can’t hear you, Ed.

Elizabeth Shores, Host/Moderator, Exodus: Maybe disconnect earbuds. Sometimes that helps. While we’re waiting for Ed to figure out his audio, remind everyone that this recording will be available. If you wanna rewatch any of it on the investor relations websites tonight. And, Ed, we are gonna come back to you.

But, Kevin, go ahead. Kevin Dede from H. B. Wright, go ahead with any other another question you might have.

Kevin Dede, Analyst, H.C. Wainwright: Apologies for hogging the line late. But if Ed Ed can’t make it, I’ve got plenty more in my in my bag. So I was also hoping that you gentlemen might share a little color on Echo. When do you expect to see it sort of launch commercially? And do you think it stays focused on x, or are there other platforms you you plan to bring it to?

And have you seen interest in doing that?

JP Richardson, Cofounder and CEO, Exodus: Thank you, Kevin. Yeah. So Echo, what what’s what’s great about Echo, again, is that we can leverage the pass keys wallet technology to get 1,200,000 people using this, 1,200,000 new pass keys created. So today, it is focused on x, and we don’t have any initial plans to bring it to other platforms, although it’s been a conversation internally that it’s something that we could consider, whether it’s Instagram or TikTok. Right?

Like, the consumer base of TikTok and Instagram is very different than that of X. And so that’s why we’ve chosen to focus just on X today because you’ll see a lot of influencers out there, some very, very famous influencers, and they go and they they create these meme coins. And then they’re they’re talking about they’re trying to build their community around these meme coins. And so we thought, well, what if we just start building tools, leverage the PASKEY’s wallet technology to start building tools to make it easy for these influencers? And so that’s where we started.

As as far as your question goes about, like, kind of the commercialization of this product, you know, ultimately, the end of the day, absolutely. Of course, if if we could snap our fingers and all of a sudden turn those 1,200,000 PAS keys into high revenue generating customers, that’s something that we would love to do. And, obviously, we’re not opposed to that, but but the intention here of Echo was not that. It was more about, can we create a platform that’s more focused on this whole world of Web three and MemeCoins and remove crypto complexity? Right?

So no 12 word secret phrase, no addresses, and and no really thinking about, oh, which blockchain am I using? Just really the ability to send value from one person to another person in an easy way. On top of that, I had referenced the the aspect of gamification, and that’s another aspect to this that we really wanted to experiment with. So instead of our core mobile product today, our core access mobile today, instead of throwing in a bunch of silly web three games and things like that into our core product, we we didn’t wanna do that. We wanted to provide a better experience for our core mobile users.

Right? And that’s why we went this other route. But we knew and know that there’s an exist another group of people out there that really like the aspect of games, really like the aspect of meme coins. And we thought, well, why don’t we try to build a product that could focus more on this segment in market? And so, again, Echo today stands more a demo of our PASKIS wallet technology.

However, we we’re not gonna let the 1,200,000.0 PASKIS just go to waste. We’re still gonna experiment more, and and, ultimately, it could turn into something in the future. But in the short term, that’s that’s not where our focus is. It was really more about demoing the technology, experimenting with gamification, and and driving results in that way.

Elizabeth Shores, Host/Moderator, Exodus: Bingo.

James Grunetzky, CFO, Exodus: And and just to add on to that, mean, don’t wanna front run the product team by any means. I’m the finance guy, definitely not the product guy. But you can see these things going into, you know, our our product road map and into the things that we are building and, you know, the different products that we’ll announce in the future, hopefully, in in in some of these future calls as well. So, you know, it is just to just to to reiterate, as an experiment, it is not something that we expect to have an impact in in 2025.

Elizabeth Shores, Host/Moderator, Exodus: Makes perfect sense. Alright. Next in the queue, we have, Bill Papadastasio. Go ahead from KBW.

Bill Papasanaccio, Analyst, KBW Bank: Thanks again for letting me ask another question here. I just wanted to touch on take rates from exchange process volumes. How should we think about that metric trending into the future? How meaningful is having that ledger partnership notch on the belt? And how favorable could it be to securing a higher revenue contribution from from new partnerships down the road?

James Grunetzky, CFO, Exodus: Just to to jump in on that one, I would say that one of the best things about the Ledger partnership is the the public nature of it and the name. Know, if it’s such a trusted brand in the space, much like Exodus, that them taking and incorporating our our, you know, our ExoSwap product and the success that it’s actually had to date is is a great, you know, case study, if you will, for every single other, you know, Web three zero, wallet provider, anyone else that we’re out there talking to. You know, it it just out of the gate, it just demonstrates the highest standard. In terms of actual margins, I I think that over time, obviously, we are working to improve take rates, etcetera, and add value to our partnership, the ExoSwap model. However, because of the and again, as I mentioned earlier, because of that revenue share component, it will never be as high as as our our base exchange aggregator.

So, you know, the the the real thing to focus on beyond that is the our ability and a desire to, you know, as you could see with Echo, build new products, add new things that add value, and incorporate that into our different offerings, whether those are in our our our base our base business, in in our partnerships strategy, or within some of the experiments like Echo. So I’d kinda leave you with that.

Elizabeth Shores, Host/Moderator, Exodus: Nice. Great question, Bill. And now we’re gonna circle back to Ed Engel from Compass Point. Go ahead and unmute.

Ed Engel, Analyst, Compass Point: Hi. Can you hear me now?

Elizabeth Shores, Host/Moderator, Exodus: Perfect.

Ed Engel, Analyst, Compass Point: Perfect. Sorry about that. Great. Thanks for taking the question. As I was saying before, congrats on the market share gains gains across the exchange aggregation volumes.

Two quick questions. First one on g and a. Just kinda curious. I know there’s a lot of moving parts. You guys sponsored the crypto ball, and it looks like stock based comp ticked up a bit, which I’m assuming might have something to do with just the the rapid increase in stock price.

But I’m just curious, I guess, what do you kind of view as normalized, g and a cost on a quarterly run rate moving forward?

James Grunetzky, CFO, Exodus: Well, it’s a good question. You’re right on stock based comp and the other things that you mentioned. We definitely called out in the queue different areas that you can think of around some of the M and A costs, our rev share, some of the increased meeting and things like that, travel. We had a bell ringing event in Q1 in January. That’s not something that we normally would we normally do.

And then we had some political contributions. So of those, you know, those are probably gonna be most of your variable drivers. Of those, you know, obviously, we we’ve talked very publicly about our about m and a. And so, you know, while I don’t necessarily think that it’ll be 1,800,000.0 every single quarter, we are definitely continuing a lot of work on that front, as we mentioned in the remarks. Revenue share, again, is a function of ExoSwap and the nature of ExoSwap, and so you’ll continue to see those.

Those will be variable, obviously, with the actual volume that comes through the ExoSwap product. And then I think the political contributions, I do believe that we will continue to be active in the industry. I think that JP’s work and others in the industry’s work has really shown the value to the industry and the importance of it in the industry. You could say that the industry woke up a little bit late in the last administration, but I think we’ve come on pretty strong. So so I’d say take take some of those take some of those as you will along with along with some of the comments we’ve had on marketing.

Elizabeth Shores, Host/Moderator, Exodus: Beautiful. Thanks, James. And I see Andrew Hart from BTIG in the queue. Go ahead, Andrew.

Andrew Hart, Analyst, BTIG: Hey. JP, you talked a bit about marketing and branding initiatives you’re thinking about going forward, calling out the the Bitcoin conference later this month. Guess, you know, what channel do you view is most effective, to get the branding and and marketing kind of accelerated a bit? And and what’s your hope for user growth or or maybe quarterly funded users as a closer KPI we should be watching?

JP Richardson, Cofounder and CEO, Exodus: Great question, Andrew. Thank you. So really when it comes down to to marketing, for us, it’s it still comes to experimenting with different channels. So what do I mean by that? There’s some proven channels like Apple search ads.

Right? Those those work and those those drive growth for sure. But there’s other channels that we’ve we’ve taken what I would call a risk on, and they and they tend to really bring strong brand awareness. So what I mean by that is if you go back to January and our sponsorship of the Crypto Ball. So sure enough, when we were one of the headline sponsorships of the Crypto Ball, you had TMZ covering Snoop Dogg being at the Crypto Ball, and you see the Exodus logo right behind Snoop’s head.

So that brought a lot of awareness for Exodus. And so for us, we like to think of of of sponsorships and events that really bring kind of a unique angle to them. And so that’s kinda how we think about it from these sponsorship of events. Now on the Echo side, part of part of the way that we drew we drove a lot of growth with Echo was that not only did we have kind of this gamification in the app itself, but we also leveraged a lot of web three influencers to on x. And so earlier when I talked about, the the lessons, the road map, part of that is in the go to market of future product products.

So early on in our company’s life cycle, way, way, way back in, you know, 2015, you know, we just built a product and kinda launched it, and we did a a few fun things, but that’s mostly what it was. And then same with excess mobile. You know, we kinda took the approach of if you build it, they will come. That was then. Now we take a much more deliberate approach of thinking, okay.

How do we actually take a new product to market and drive a significant amount of growth? And for the answer to us is it’s a combination of a number of those things. It’s traditional ad channels. It’s sponsorship of really key and exciting events. It’s it’s it’s thing it’s using influencers to really talk about the product and and use the product.

So it’s all of these different aspects that we believe will really drive growth for for all of our products in the future.

Elizabeth Shores, Host/Moderator, Exodus: Yeah. And thanks for asking. That’s a fun one to unpack. Well, everyone, that is bringing us to the end of our q and a session. Thanks to JP, James, and all of our analysts and all of you who joined the call today.

You’re invited to visit our social channels on X and Reddit to submit any questions you may have for our management for the first quarter. Our investor relations team is standing by. So thanks for joining us today, and we’ll see you next quarter.

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