Release Date: March 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Exodus Movement Inc (EXOD) achieved record revenue in Q4 2024, growing 143% year over year to $44.8 million.
• The company successfully expanded its partnerships, with 11 partners signed for Exoswap, contributing 12% of Q4 revenue.
• Exodus Movement Inc (EXOD) launched innovative products like Xopay and Pasky's wallet, enhancing user experience and simplifying crypto access.
• The company ended 2024 with $116.3 million in revenue, marking a record year.
• Exodus Movement Inc (EXOD) uplisted to the Nicey American exchange, improving liquidity and visibility with investors.

Negative Points

• The company did not disclose gross margins or GNA expenses for Q4, leaving some financial details pending until the 10-K filing.
• Exodus Movement Inc (EXOD) faces challenges from the volatile cryptocurrency market cycles, which can impact short-term business performance.
• There were significant costs associated with the Nicey uplisting process, impacting financials.
• The integration of Exopay with partners like Moon Pay is still in progress, aiming for a seamless user experience.
• The company is cautious about sharing specific user onboarding impacts following major industry hacks, indicating potential sensitivity to security events.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Sign with DSP.

Q: The industry recently experienced a major hack on a centralized exchange. How does this impact demand for self-custodial products like Exodus, and did you see any notable impacts on user onboarding after this event? A: JP Richardson, CEO: The hack highlights the risks of custodial exchanges and reinforces the value proposition of Exodus as a self-custody solution. While there was an influx of customers, we are not ready to report specific numbers. These events continue to validate why Exodus was created, providing a secure way to store and swap multiple assets without relying on exchanges.

Q: Did Exodus disclose any gross margins or G&A expenses for the fourth quarter, and were there any one-time costs related to the NASDAQ uplisting? A: James Gronitski, CFO: There were costs related to the uplisting, particularly legal and accounting fees, which will be detailed in our upcoming 10-K filing. We have not disclosed gross margins or G&A expenses yet; please refer to the filing for those details.

Q: Can you provide more details on XO swap and its impact compared to your legacy aggregation business? A: JP Richardson, CEO: XO swap allows us to leverage our technology with partners like Ledger and Magic Eden, enabling them to offer our swap aggregator technology to their consumers. This approach allows us to tap into other consumer bases without direct marketing, making it a best-in-class solution for cross-chain swaps.

Q: How does Exodus view its intellectual property in terms of creating a competitive moat? A: JP Richardson, CEO: We are considering open-sourcing some client-side code to encourage wallet development using our APIs, which would likely integrate XO swap and Xopay. The real moat lies in our backend services like XO swap and Xopay, which are not open-sourced and provide a unique value proposition through our partnerships and technology.

Q: How does Xopay integrate with partners like Moon Pay, and what challenges do you foresee in delivering a seamless user experience? A: JP Richardson, CEO: Our goal with Xopay is to provide a seamless and integrated experience for users, eliminating the need to choose between different providers. While users currently see options like Moon Pay and Xopay, we aim to create a cohesive experience that feels like one unified platform, potentially powered by partnerships.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.