Exodus Movement (EXOD) 22 Jun 232023 Q1 Earnings call transcript

Welcome, everyone, to the Exodus First Quarter 2023 Earnings Conference Call. I'm Kris Merkel, and I'm joined today by Co-Founder and CEO, JP Richardson; along with James Gernetzke, our Chief Financial Officer. I'd like to remind you that during today's call, we may make forward-looking statements. Actual results may vary materially from today's statements. Information concerning risks, uncertainties and other factors that would cause results to differ from these forward-looking statements is included in our SEC filings available on the Investor Relations portion of our website. Please visit our social media, Twitter, or Reddit to submit your questions for the quarter after our call.

You can expect a response from our Investor Relations team within 24 hours. now over I'll JP. that, with turn to it And

what's for thank today. you Thank at and and everyone, our come joining Exodus. results with you, Kris, share you, us here to I'm QX to excited

you it's movement. mission, just a know, Exodus As not a is

needed world wallets name Movement, priority. that your money self custodial always controlling Exodus legal self-custodial. should XXXX top our movement Inc., your Our be and should like be is has Exodus to teach the through

means money, from money your also your against money here of the covered particularly custody exchanges putting banks at money putting at risk, it's you not bank of by a in failures. your Given as means you're your perspective FDIC regulatory risk protects over insurance U.S. Giving $XXX,XXX that

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Exodus your digital ETFs, your store further NFTs, bonds the even course, ahead, your but your of to stocks, envision as all app your all in and crypto, we Looking assets, also of DeFi, Bitcoin, But one will to this I results. our quarter get who place, all financial let's before first side James, by talking future, over James. too pass to the Over you, about side. far, review

that, into right With get the numbers. JP. let's Thanks,

part of our And metrics market conditions. market. of XXXX, last we've turned still QX bull if the the QX, end So year hopefully, quarter bear the the quarter first of being XXXX that tail year, that last With of of last bear tend market. being of market. reflect corner And to

of the QX the However, market of was XXXX. height it bear definitely

XX% volume quarter prior from QX from revenue was slightly last revenue, down XX% That's XXXX. previous the So from looking and at in XX% down compared about Exchange to up $XX.X was QX revenue, our similar million. the and to QX up million of quarter of as $XX.X year.

to QX, off-ramp really offerings revenue and and improvement. to fee volume that continued at on improve than greater contributed the Our in exchange

one, the, a And therein. growth out And is growth diversification. two, of more people on- contributed revenue in our revenue mission, of part of our the our exchange that our off-ramp saw XX% to because difference, products that Fiat to and we and it So and finance in large crypto XX% volume. growth of the because quarter-over-quarter traditional and system; getting we into and like see only

we cohort XXXX. And see than the and quarter down that's while beyond further us at XXXX, the who joined up doubled front revenues with the with of and Xx ended users, and stayed pleased look of this us, see quarter our over So year-over-year. how back very as to trend XXXX XX% from if those from see big to we XXX,XXX that active quarter whole and we're and we can in us. our XXXX, you they've about move But large look are MAUs monthly prior of X% that to in jump 'XX this we look we more that users

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going it's loyal as and build pleased be with are the key general our are how kind our our I products. revenue improves mean and capture new obvious again, to But and really we their in prospects to just that highlight our market to ability of loyalty users stickiness I future general. we of users the to want

our market general obviously $X.X had improvements this X was mentioned, We in full see had that we've of and of course-corrected the one, we delivering can in $X.X And EBITDA. in believe bear as And expenses. million positive we last profitability QX, previous we market of that adjusted from well last And year, growth. parts: as year the million end discussed due EBITDA. QX, we for Now calls. at year, adjusted as you reduced as for

terms sheet. mention balance always, expect the we year's the we some EBITDA a that company, very trend QX leaner And adjusted well. And And going year. last due remain to we last of in I for maintained ran have year in to layoffs. remainder should a forward also positive of strong as the leaner bonus have As ended as we and a cuts with

can that March of aggressively value, have, of map, Warren and in we be as and that of and crypto to assets. million to says, balance cash store are end a position believe generally, and keep be customer greedy debt, and we Bitcoin no want our the And strong delivering in as and road digital sheet Buffett ensures And $XXX continue we to support. at have continue others fearful. a to execute product we our we are when world-class We

back JP. to So you, with that,

Thanks, James.

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using let's we step to swap exchange a make multiple it our your wanted looking easy multiple customers self-custody, funds. on back. assets this keys, Before forward, a across take your blockchains. your manage delivered Meanwhile, portfolio In without to it's crypto to hold an We vision, XXXX, maintain so easy to now crypto.

custodial XXXX brought the complement product. mobile desktop app, wallet similar and self multichain Exodus another our to

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round. financially Exodus, steep an agonizing spending layoff cuts with meant adjusting For

Despite the to designed survived, Exodus our the sees on While continue wish brought experience I We we customers. us first doing wouldn't all turbulence, building for still our success. anyone. to products beautifully back this work what opportunity headed more

financial and to explore shift WebX many over of opportunity software and direct multiple plug-ins long-term projects in browser speculation blockchains. tremendous like participation us is utility, XXXX all financial had blockchains. But gateway services even to just from just again crypto's WebX world with reminded that extension of of different Web the saw for the insurance. WebX, cryptocurrency. X all users a We to the case of borrowing on all This created away financial to each different lending, navigate use wallet to being towards install

without ever navigating browser leaving many So self and ever or the WebX we wallet only you'll need. web is your breaking sweat. Exodus a build wallet multichain across different wallet, It WebX blockchains WebX custodial a

Exodus QX, browser in Exodus And the for we dApp launched Mobile.

fit entire your another XXXX building This greatest in alongside hand. example Exodus is today, industry. in of our hits the palm So nonstop of blockchain's

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customers. aggregator time a win pairs less get we more. for provider. came once If users, let's providers providing swap numerous API the by single robust our But an Today, providers offering offering only industry-leading Not go Despite swaps it swaps swap customers from API competing third-party did providers. a you'll various with but in and realize having first our benefited our started API more is access was when multiple for XXXX, we API also Exodus' powered competition provider back between customers. indulge was to they that exchange for downtime, in me, to

such very API and swaps course, coverage or sources, geographic and, pricing. to each large ability and competitive swap of As strengths orders provider as fast liquidity even fill brought confirmation unique the X

these community All access built wider has help industry-leading positioned us uniquely components. these into of some this components believe business. our Exodus crypto make We that show history to offering is to components to the by

the face many technical WebX As design grow, faced same Exodus ago. challenges are them and seeing years DeFi projects that and we

have For our in stablecoin. assist ecosystem, commitment a we to To Sovryn to wallet show a portion treasury to even building the with of unique example, them working Sovryn we allocated our dollar are ecosystem. to a this their

Now unique a X in got forum thread ago. community started all Sovryn project. from is BitcoinTalk years a They

as been creating DeFi utility, the historically using on major central is with real whereas built all Bitcoin all DeFi of world projects have products most types asset, Ethereum. Sovryn of the

Bitcoin You to interest. your X% can while loans against use paying take Sovryn Zero out

earn You can Bitcoin hold Bitcoin-backed yield. dollars and even can trade and your you

efforts is to Sovryn of very Yes, by in has lot say WebX outreach we Keep eye beginning efforts, WebX ecosystem our Now out world They're continue shipping our a the investor self-custody. and remote so these be support reach as friend new make our your serious bitcoiners. with projects fully dead space, updates as they're always, the numerous and as an we'll is they global. we growing we and love the all to to team relationships They embrace help team our out This common. the trusted that forward have offer. look crypto all regular security. progress. And products I'd anytime. in to is for Everything broader the

personally customer. weekly, so close to fact, in time of stay I'm voice spending the customer can I In our the inbox

you encourage reach I any questions. to So out with

traditional the thank I've financial system. from our for mission customers to And it you help to turn might world here me. our all investors I'll loyal supporting now just over exit all to And That's Kris. You got. the and

Thanks, for JP. Please quarter. visit our questions social management for channels your submit first to the

a Relations direct XX response today. for within Investor of You each inquiries can to team your joining our expect hours. us from Thanks