Earnings call transcript: Exodus Movement reports strong Q4 2024 revenue growth

Exodus Movement Inc. (EXOD) reported a robust fourth quarter in 2024, with revenue soaring by 143% year-over-year to $44.8 million. The company’s stock saw a slight decline during regular trading hours, closing at $42.20, down 2.91%. In aftermarket trading, the stock rebounded by 2.51% to $42.00. According to InvestingPro data, the company has maintained impressive growth with an 83.71% revenue increase over the last twelve months, though current valuations suggest the stock may be trading slightly above its Fair Value. With record full-year revenue of $116.3 million and significant growth in exchange provider process volumes, Exodus Movement continues to strengthen its position in the cryptocurrency market.

Key Takeaways

• Q4 2024 revenue increased by 143% year-over-year.
• Full-year revenue reached a record $116.3 million.
• Exchange provider process volumes grew by 169% year-over-year to $2.3 billion.
• Aftermarket stock price rose 2.51% following earnings release.
• Significant growth in monthly active users, up 64% to 2.3 million.

Company Performance

Exodus Movement has demonstrated impressive growth in the fourth quarter of 2024, achieving a 143% year-over-year increase in revenue. The company attributes this success to its strong position in the exchange aggregation market, which accounted for 92% of total revenue. The number of monthly active users also grew significantly, indicating increased adoption of its platform.

Financial Highlights

• Revenue: $44.8 million in Q4 2024, up 143% year-over-year.
• Full Year 2024 Revenue: $116.3 million, setting a new record.
• Exchange provider process volumes: $2.3 billion, a 169% increase year-over-year.
• Monthly active users: 2.3 million, up 64% year-over-year.

Market Reaction

Despite a decline of 2.91% during regular trading hours, Exodus Movement’s stock price gained 2.51% in aftermarket trading, reflecting investor optimism following the earnings report. The stock’s movement is within its 52-week range, with a high of $117.40 and a low of $6.25. InvestingPro analysis reveals the stock’s high volatility with a beta of 3.48, while analyst price targets range from $50 to $70, suggesting potential upside. Discover 12 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.

Outlook & Guidance

Looking ahead, Exodus Movement aims to continue its growth trajectory by focusing on partnerships and potential acquisitions. The company reported that Q1 2025 volumes have already reached $1.45 billion, with 23% of this volume coming from ExoSwap partnerships. InvestingPro data shows the company maintains a strong financial health score of 2.71 (rated as GOOD), with a robust current ratio of 8.14, indicating solid operational efficiency. Access the full Pro Research Report for detailed analysis of EXOD’s growth potential and comprehensive financial metrics. The company also plans to increase its Bitcoin holdings, which have surpassed 2,000 units by February.

Executive Commentary

CEO JP Richardson emphasized the company’s long-term vision, stating, "We are at the very early stage of this journey to make Exodus the leading Web3 technology platform." CFO James Grunetsky added, "We continue to refine and improve that overall experience as well as work to provide best execution." These comments highlight Exodus Movement’s commitment to innovation and user experience.

Risks and Challenges

• Market volatility: Cryptocurrency markets are inherently volatile, which could impact future revenue.
• Regulatory changes: Potential changes in cryptocurrency regulations may affect operations.
• Competition: Increasing competition in the crypto wallet and exchange aggregation space could pressure margins.
• Security concerns: The risk of exchange hacks could impact user trust and demand for self-custody solutions.

Exodus Movement’s strong Q4 performance and strategic focus on partnerships and innovation position the company well for future growth. However, it must navigate market volatility and regulatory challenges to maintain its competitive edge.

Full transcript - Exodus Movement Inc (EXOD) Q4 2024:

Greg McNiff, Host/Moderator, Exodus: Welcome everyone to Exodus’ Fourth Quarter twenty twenty four Earnings Conference Call. I’m your host, Greg McNiff and joining us today are Exodus Co Founder and CEO, JP Richardson and Exodus CFO, James Grunetsky. During today’s call, we may make forward looking statements. The company cautions investors that any forward looking statements involve risks and uncertainties and are 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 under forward looking statements in our earnings press release and our most recent registration statement on Form 10 filed with the Securities and Exchange Commission available on the Investor Relations portion of our website. We do not undertake any obligation to update forward looking statements. Please visit our social media accounts, X or Reddit to submit your questions for the quarter for our Investor Relations team after our call. And with that, let’s go to JP for the review of Exodus’ preliminary fourth quarter and full year ’20 ’20 ’4 results.

JP Richardson, Co-Founder and CEO, Exodus: Hey, everyone. Thank you for joining us today. Our unaudited Q4 results represent yet another strong quarter for Exodus. As we continue executing on our strategy to bridge traditional finance and blockchain technology, we delivered record revenue while introducing innovations designed to make digital asset ownership frictionless and accessible to everyone. In Q4, we grew revenue 143% year over year to $44,800,000 We continue to scale our business by expanding on the partnerships we announced last quarter.

We currently have 11 partners signed with Exoswap, with five of those already in the integration process. Exodus finished the full year with $116.3 M of revenue and those are record revenues on the quarter and the year. Accordingly, we accomplished several milestones in the quarter building on last quarter’s momentum and aligning with our growth initiatives. Let’s run through those milestones. First, we continue to invest in marketing and education.

As many of you are aware, Exodus was a co host of the first crypto ball in D. C. Expect to see similar marketing initiatives in the coming months as we shoulder increasing responsibility to foster awareness and adoption of Bitcoin, DeFi and Web3, especially to the policymakers in DC. Meanwhile, self custody remains the core of our business. As Exodus continues to empower users with a secure multi chain wallet for Bitcoin, Ethereum, Solana and beyond.

Our exchange aggregator technology extends our natural multi chain capabilities by connecting consumers with the most competitive rates and transaction speeds. While our newest launch, ExoPay, also simplifies fiat onboarding to improve the whole user experience. Now, the most exciting development this quarter was the very strong performance of our newly announced B2B2C swap aggregator, ExoSwap. This ExoSwap product leverages the exchange aggregator technology with its decade of refinement in reliability and serves to other industry players, including Ledger and Magic Eden. As a reminder, our exchange aggregator enables consumers to retain control over their crypto transactions while providing transparency and security.

This aggregation is intended to enable consumers of other wallets to receive the best available rates and fulfillment times. Exoswap is truly a best in breed solution for any wallet or Web three dApp looking for multi chain swap capabilities honed, as I mentioned, in our own wallet over the past decade. And with ExoSwap contributing 12% of our Q4 revenue, we are enthusiastic about its long term potential. We are closely tracking its momentum in 2025. Furthermore, the Passkey wallet launch marks a major step in simplifying crypto access with frictionless onboarding.

Fast Keys wallet is a self custodial multi chain wallet that can be embedded directly into dApps and web platforms. Some call this technology smart wallets. We prefer the phrase instant wallets. With Passkeys wallet, consumers can create and access a crypto wallet without any friction. No need for downloads, no accounts, no email verification, no storing of a 12 word secret recovery phrase.

Instead, the self custodial wallet is seamlessly managed using base ID, touch ID, a PIN, or even password. This solution improves the user experience and offers developers a powerful tool to integrate crypto functionality into their platforms. Early adoption has been strong and we are excited about its growth potential in the quarters ahead. Passkeys ended 2024 with over 200,000 users, thanks to a marketing program we ran on X. Shifting gears, acquisitions remain on the table as XYS continues to build its pipeline of targets.

There is significant inbound interest from companies looking to join us on our journey, but we will not be sharing any names at this time. There’s a longer term vision we will share in the future earnings release that we believe partnerships and acquisitions will help to accelerate. And in December, we celebrated with an uplisting to the NYSE American Exchange, where we are enjoying the increased liquidity, better opportunities to access capital, and improved visibility with investors. Beyond Exodus, our broader crypto ecosystem gained momentum throughout Q4, increasing mainstream adoption and institutional participation. The Trump election preceded major changes in the acceptance of our industry.

Bitcoin ETF inflows were substantial with $16,000,000,000 on the quarter, while Bitcoin reached $100,000 for the first time. And to put the cherry on this Sunday for Exodus, yesterday, president Trump announced a crypto strategic reserve by which the presidential working group on digital assets would move towards creating US investments in Bitcoin and other digital assets. As we say in crypto, LFG. And so Q4 was very strong as Exodus grew while innovating to make digital assets more accessible. Our NYSE American uplisting, our major product rollouts like ExoSwap and Passkeys wallet and our focus on superior customer experience.

We believe all of these factors have Exodus solidly on track for a prosperous 2025. I just want to thank you all to our customers, partners, investors and team members for joining us at every milestone. We are at the very early stage of this journey to make Exodus the leading Web3 technology platform and I couldn’t be more exciting about our opportunities ahead. We look forward to reaching many more milestones as we seek to transform our visions into reality. And now I’ll hand it to James for a financial update.

James Grunetsky, CFO, Exodus: Thanks, JP. Q4 was a strong milestone quarter for Exodus and the market. But before jumping into Q4 and 2024 results, I’d just like to remind everybody, we recognize the large majority of our revenue from fees we charge third party API providers for access to our users. And in particular, revenue generated from our exchange aggregation API providers makes up the core of our business. We do have non exchange aggregation revenue as well, which comes from API providers with other capabilities such as staking and fiat onboarding.

Given our model, business performance has historically been affected by the cryptocurrency market cycles, which can be volatile in the short term. However, when looking over a longer period of time, we have been able to scale our business across these cycles.

Ed Engel, Analyst, Compass: So in

James Grunetsky, CFO, Exodus: the future, we expect to further capture our addressable market through strategies such as partnerships and products such as Exoswap. In Q4, we generated $44,800,000 in revenue, representing 143% growth year over year and 123% sequentially. This year over year revenue growth was driven by strength in both our exchange aggregation and non exchange aggregation revenues and further supported by increased user activity and continued positive momentum in the cryptocurrency market. Exchange aggregation accounted for 92% of total revenue in the full year 2024. And of that exchange revenue, 93% was from our users and 7% was from our Exoswap partnerships, while non exchange aggregation, including fiat onboarding and staking revenue, represented 8% of the total revenue.

One of the key developments in the second half of twenty twenty four was Exoswap, as the partnerships came fully online with meaningful contributions towards the end of the year. And this momentum has continued into the first quarter of twenty twenty five. Exchange provider process volumes for the quarter were $2,300,000,000 reflecting 169% growth year over year and 139% sequentially, which was made possible as cryptocurrency valuations increased on the year along with Exodus’ user base. Monthly active users in Q4 reached 2,300,000, which compares to 1,400,000 a year ago and 1,600,000 in Q3. This growth was driven by multiple factors.

We enjoyed increased user engagement, new product launches and ongoing marketing initiatives throughout the year. On our balance sheet, we ended the quarter with $265,000,000 in digital and liquid assets, primarily composed of Bitcoin, Ethereum, US dollars and Treasury bills, while we remained debt free. We continue to be early adopters of ASU twenty twenty three-eight, which as a reminder means our digital assets are now recorded at fair value. You can clearly see our long term Bitcoin strategy in action on this chart, which highlights our accumulation over time. We held $19.41 Bitcoin as of the end of Q4 compared to 1,800 units in Q3.

Looking back, we held $17.87 Bitcoin as of 2023 year end. Our Bitcoin holdings have grown over time as we have strategically managed our treasury to align with our long term vision. Looking ahead, we intend to take a disciplined approach to treasury management, balancing operational needs with opportunities to strengthen our digital asset position. And to bring everybody up to speed on the new year, I’ll provide preliminary Q1 highlights that demonstrate that this quarter is off to a strong start. Through the first two months of Q1 twenty twenty five, we have seen volumes of $1,450,000,000 which, for comparison, is already higher than the volume we saw in each of the whole first three quarters of twenty twenty four.

Of that, 23% of the volume is related to Exoswap partnerships. We’ve also grown our digital asset holdings, ending February with over 2,000 Bitcoin units in our corporate treasury. So to wrap up our discussion, Q4 was another strong quarter for Exodus as we continue to capitalize on the growing digital asset market. We remain committed to maximizing shareholder value, and we thank you all for your support. With that, we’ll take some questions.

Greg McNiff, Host/Moderator, Exodus: Thank you, James. Our first question comes from Ed Engel from Compass. Ed, if you want to unmute your line and ask your question.

Ed Engel, Analyst, Compass: Hi. How’s it going? Can you hear me?

Greg McNiff, Host/Moderator, Exodus: Yep. Loud and clear.

Ed Engel, Analyst, Compass: Great. Yep. Congrats on the NYSE uplifting last quarter and and also on the really strong set of fourth quarter results. So just kind of high level one first. Just the industry experience when the biggest hacks ever last month when a centralized exchange was hacked for over a billion dollars.

How do you kind of think of these events, and how they kind of impact demand for some custodial products like Exodus? And then did you see any notable impacts, on user onboarding after this event?

JP Richardson, Co-Founder and CEO, Exodus: Thank you. So, yeah, absolutely. I mean, one of the biggest exchange hacks ever was you mentioned $1,500,000,000 happened through infiltration of the systems. Now ultimately it was due it was the the ETH was stored on a on a smart contract but it was the hacks were customers of funds. Now fortunately Bybit was able to as far as I know make whole on that kind of a hack.

But it does continue to highlight the risk of custodial exchanges. And so for us, I mean this continues to reinforce the value proposition of Exodus and that we are self custody. And so yeah absolutely there was influx of customers but nothing that we are willing to report just at this moment. But again these hacks are going to continue to happen. Custodial exchanges are going to get hacked again and again and again and again.

And this points to the origin as to why XIS was created in the first place. If you go back to 2014 with Mt. Gox, and then if you wanted to store multiple assets and swap multiple assets, you had to use an exchange. But today, that’s no longer true and you can use Exodus to hold all of your assets in one wallet.

Ed Engel, Analyst, Compass: Super helpful. Thanks. And then one house keep to one, I wasn’t quite able to find it, but did Exodus disclose any gross margins in the fourth quarter or G and A expense? And then, if you guys had that already, were there any one time costs related to the NYSE uplisting?

James Grunetsky, CFO, Exodus: There were costs related to the uplisting. Obviously, as you can imagine in 2024, the Form 10 process generated some significant fees for our friends in the legal industry, as well as the accounting industry. And you’ll see those when we file our 10 ks here shortly. In terms of, sorry, what was the other part of that question?

Ed Engel, Analyst, Compass: Did you guys disclose any gross margins or G and A expense overall in the fourth quarter? Are we still waiting for the the filing?

James Grunetsky, CFO, Exodus: I would just wait for the filing.

Ed Engel, Analyst, Compass: Okay. Thanks. And then, I guess one last one. At the beginning of the quarter, you guys announced, kind of a change to your pricing structure or the pricing mechanism, or I guess the swap experience of I’m just kind of curious, what does that mean for, I guess, the product offering? Is it just kind of more options for users?

And I guess, does that have a substantial impact on, your overall fee rate, moving forward?

James Grunetsky, CFO, Exodus: I’ll I’ll I’ll take the first part. And, JP, feel free to jump in, if I, miss something here. The the overall I would say that that that structure does not change, the overall. I believe that is specifically related to some of the Solana fees. However, it just signifies our desire to continue to improve that exchange aggregator We’ve been working on that for, as JP mentioned in the opening remarks, ten years now.

And we continue to refine and improve that overall experience as well as work to provide best execution and fee structure for our users going forward. The one thing the other thing I would say on that is, in general, that did not necessarily change our margin structure at all on our base business.

Ed Engel, Analyst, Compass: Perfect. Really helpful. And again, thanks for the clarity and then congrats on a great start to the year.

Greg McNiff, Host/Moderator, Exodus: Great. Thanks, Ed. Our next question comes from Kevin at H. C. Wainwright.

Kevin, if you’d like to unmute your line and ask your question. Kevin, are you able to unmute your line?

Kevin, Analyst, H.C. Wainwright: Yeah. Yeah. Can you hear me now? Is that better?

Greg McNiff, Host/Moderator, Exodus: It is.

Kevin, Analyst, H.C. Wainwright: JP, James, thanks very much for having me on the call. Apologies for my ineptitude and handling Zoom (NASDAQ:ZM) and these communal venues. Listen, JP, first, let’s dive in a little, please, and offering maybe some more color on ExoSwap. Understand there are 11 agreements, five have been integrated. You’re seeing a benefit already through the fourth quarter and in through March so far this year.

James Grunetsky, CFO, Exodus: Can can

Kevin, Analyst, H.C. Wainwright: you talk about where you see that going versus your legacy aggregation business?

JP Richardson, Co-Founder and CEO, Exodus: Absolutely. So if we look historically at our our the some of the bigger current partnerships that we have Magic Eden and more specifically Ledger and you look at consumers that are using some of these products specifically Ledger right so Ledger has I think close to 7,000,000 customers maybe close to eight but seven to 8,000,000 customers And today these customers what they’re doing is is they’re they they own you know a hardware wallet and then they’re they’re plugging into their machine and and and they’re they’re using it. And despite the fact that a ledger works with Exodus and so does a Trezor works with Exodus, many consumers are happy using the ledger software that they have today. And so what this allows us to do is it allows us to take our technology, the ExoSwap technology, the swap aggregator technology, and bring it to other business partnerships so that they can offer it to their consumers. And since we see wallets as again as kind of a sticky for a customer base, it allows us to tap into other consumers without us having to go market to those consumers and actually have to bring them over to Excess.

So they can still use the platform that they know and love, say Ledger in this case, and then again use the swap aggregator technology. So beyond this we see and believe that many other wallets will adapt exoswap as well because it is one of the best in class for for providing swaps cross chain for for consumers.

Kevin, Analyst, H.C. Wainwright: It’s hard it’s hard to argue with you, JP, given the quarter’s results. Congrats on that. So, another stab at it. How do those users, the ones on Ledger and Tensor, Magic Eden, how do they see that Exoswap technology? Is the Exodus Movement brand in any way put to those customers?

JP Richardson, Co-Founder and CEO, Exodus: Yeah. We like to create in a seamless and integrated experiences, so in the case of many some of these platforms so like Ledger, the brand is a little more pronounced but in the case of let’s say like Magic Eden it’s less pronounced. So it’s going to vary on a case by case basis because all of what we’re providing is is API’s that route to our third party API providers. And so the the actual branding is gonna vary on a case by case basis. How

Kevin, Analyst, H.C. Wainwright: how how do you look at the intellectual property that you’ve baked in?

Greg McNiff, Host/Moderator, Exodus: Granted

Kevin, Analyst, H.C. Wainwright: ten years of hard work, not to be dismissed, but how how do you look at that in terms of Exodus having a moat?

JP Richardson, Co-Founder and CEO, Exodus: Yeah. Absolutely. So that’s a great question because what we’re think how the the way we’re thinking about this long term is actually open sourcing a lot of the client side front end code of Exodus with the intention of making a wallet cheaper for developers, Web three projects to come and build wallets. Because ultimately at the end of the day, if a consumer or if a developer builds a wallet with our APIs, then they’re way more likely to integrate ExoPay or ExoSwap. And so for ExoPay and ExoSwap, these products are on the back end.

They’re on the server. They’re not open source. They’re not available to developers other than through an API. So it would be very hard for a, a competitor or another wallet provider to come along and say, hey, we’re gonna build our own ExoSwap because again, what we’ve done over the last ten years is we’ve taken all the swap partners out there and we put them in one experience. And behind the scenes, we are monitoring and controlling what the consumer ultimately experiences, and we provide a back end interface of analytics and and control for our partnerships.

So from the aspect of a moat, the real moat is going to be through ExoPay and ExoSwap, not the front end wallet itself. So I think that’s really important to note that long term we want as many wallets out there as there can be so that we can ultimately, have more partnerships with for Exoswap and ExoPay.

Kevin, Analyst, H.C. Wainwright: Last question for me, I promise. Let’s talk a little bit about MoonPay and Bangxa. I I know that deal went south. And listen, I’ve covered Bangxa for years and years, and the original figurehead

Greg McNiff, Host/Moderator, Exodus: of

Kevin, Analyst, H.C. Wainwright: that company was an awesome guy. The most recent management change hasn’t left me feeling very upbeat about where that company was going. I understand that they you and they couldn’t align, and it makes sense. But I I just I guess I would like to understand how that, ExoPay and the MoonPay integrate and how difficult integration is in delivering ExoPay.

JP Richardson, Co-Founder and CEO, Exodus: Quick question. So long term, everything that we think about is through the lens of the consumer experience. So today, as a consumer using Exodus and and then going and buying, crypto with say, a debit card or checking account, one of our biggest partners, MoonPay, and and they’ve been a great partner, as a consumer, you go and you see a completely different experience. It almost feels foreign to you as a consumer. So our path of building out ExoPay is to provide a more customized and seamless and integrated experience.

So as a consumer, you feel like you’re just in one Exodus experience. Now at the end of the day, whether it’s ExoPay or MoonPay, we ultimately do not care. We just want to provide the best experience for our customers. And and you may look for more enhanced partnerships in the future that would help us to to do that.

Kevin, Analyst, H.C. Wainwright: So the apologies I lied. The Exodus the Exodus user doesn’t see the MoonPay and ramp up on ramp or off ramp activity and then they have an alternative to use Xopay?

JP Richardson, Co-Founder and CEO, Exodus: You can ask as many questions as you want. These are great questions. So no. So right now

Kevin, Analyst, H.C. Wainwright: today Trust me, I went through an hour of this with James. He never wants to speak to me again.

JP Richardson, Co-Founder and CEO, Exodus: No. I love it. Just keep throwing them out. So if you’re a consumer and what you’re presented with today is you are presented with a choice of MoonPay, ExoPay and other fiat on ramp providers. Other ways to purchase crypto with Bitcoin or sorry, purchase crypto with a credit card or a checking account or what other fiat method you want to use.

So you have that choice today. Long term, we’re looking to create a very strong seamless experience so that as a consumer, you don’t have to think about whether you’re using ExoPay, MoonPay, Ramp, or any other provider. You’re just integrated in Exodus, and it just feels like one cohesive experience. And this one cohesive experience really ultimately could be powered by a partnership with MoonPay or someone else. But but that’s ultimately what we’re after is a seamless experience.

And today, it doesn’t quite feel that way. It it feels like as a consumer, like, I wanna use my debit card to buy Bitcoin. Okay. I have to choose between an ExoPay, a MoonPay, or some of the other providers. Does does that Well,

Kevin, Analyst, H.C. Wainwright: you hit on yes. It helps a lot. So the I I guess it kinda becomes interesting as you you know, or you look down the pike and and integrating all this seamlessly. It’s it’s hard for for me to see anything seamless in the world of crypto. I mean, it’s absolutely probably one of the most awkward environments you can imagine.

So I applaud the effort. How how do you see that, that ExoPay launching and its growth rate?

JP Richardson, Co-Founder and CEO, Exodus: Here’s what’s great about ExoPay, is that to those who already are partners with ExoSwap and they’re getting value from ExoSwap, ExoPay becomes a natural compliment for us to go in and say hey you have this swap aggregation technology from us already, now we have this other service and platform for you called ExoPay and so we think that provides a strong channel for additional partners for ExoPay. But at the end of the day what we’re really trying to do is remove all complexity from crypto because to your point crypto is it is complicated still right? Like the fact that you have still 12 word secret phrases, still addresses, the fact that you have different you have to worry about is this an l one, l two? Which network am I on? What do I have enough ETH to pay my gas fees?

These are the things that we’re looking to remove from the consumer experience long term.

Kevin, Analyst, H.C. Wainwright: Thanks for very much JP for indulging me. It’s a a real pleasure being on the call. I appreciate it. And James, thanks for allowing me to to join. I know it was a tough decision for you, but it’s fun to be included.

Thank you.

James Grunetsky, CFO, Exodus: I love the questions, just like JP.

Greg McNiff, Host/Moderator, Exodus: Thank you, Kevin. That ends our Q and A session. Thanks to JP, James and our analysts. Please visit our social channels on X and Reddit to submit your questions for our Investor Relations team. And with that, we’re concluding our call.

Thank you very much for joining us today and we hope to see you in the future. Take care.

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