Online cryptocurrency platform Voyager Digital Ltd. (VYGVF) reported operating income of $3.2 million for its fiscal second quarter versus a loss of $2.9 million a year earlier, according to its earnings statement Tuesday morning.
While fiscal second quarter revenue of $164.8 million was shy of analyst estimates for $178.1 million, it more than doubled from the first quarter, and was up 4,400% from the previous year. Of that $164.8 million, $149 million was from the company’s historical crypto trading business, and $15.8 million from the Coinify merchant operation.
“We are a product delivery organization and are taking the necessary steps to continue our revenue diversification strategy,” said CEO Steven Ehrlich. Next up, he said, is the launch of the Voyager Debit Card. The company also has plans to add equity trading to its platform, expand to Europe and Canada, and offer a non-fungible token (NFT) product and wallet.
Looking at other metrics, Voyager reported total verified users of 3.2 million as of Dec. 31, 2021, up 49% from 2.15 million three months earlier; total funded accounts of 1.074 million, up 25%; and total assets on platform of $5.9 billion, up 37%.
Company headcount rose to 250 as of Dec. 31, 2021, up from 231 in the previous quarter.
Speaking on the earnings call, management said it expects to be more active in mergers and acquisitions, but will be focused on finding the right cultural fit. Asked about buybacks given the more than 50% decline in the stock price over the past three months, the team declined to comment.
“Overall, it was a solid quarter for Voyager in our view as revenues continued to expand/diversify, account growth was strong and the gap between lending/staking revenues and rewards tightened,” said Compass Point analyst Chris Allen in a note to clients. He continues with a buy rating on the shares.
Shares are higher by 2.6% in morning action.
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