Voyager Digital Reports At Least 36% Revenue Decline In Q3 Based On Preliminary Results

Voyager Digital (TSX: VOYG) appears to be having a rough start to 2022. After announcing last week that the company is the subject of several court orders across multiple US states last week, the firm today announced its preliminary revenue estimates for the quarter ended March 31, 2022 – which show a significant sequential decline.

For the third quarter, which has a period end of March 31, the company is expecting to recognize revenues between US$100 million and US$105 million. While the company highlights that on a year over a year basis this marks a revenue improvement of 70%, the firm fails to highlight the significant tumble on a sequential basis.

For the second quarter, Voyager Digital recorded total revenues of $164.8 million, after having putting out preliminary guidance of $165 million. As a result, on the low side the preliminary results represent a decline of 39.3%, and on the high side of estimates they represent a decline of 36.3%.

The decline in revenue reportedly comes as the company expanded its funded accounts by a figure of 115,000, representing roughly 10% growth on a sequential basis. Total funded accounts are now said to sit at 1.2 million. Total verified users meanwhile grew from 3.2 million to 3.5 million.

Also plaguing the company is net new deposits for the quarter, which sit at $395 million. Comparatively, the second quarter saw $1.04 billion in new deposits made to accounts on a net basis.

Full financial results are expected to be released on May 16 by the company.

The announcement follows the company receiving multiple court orders across eight US states related to its crypto products. The orders relate to the firms Earn Program, which the states allege consists of “offering and selling securities or investment contracts” that are not registered within the states.

Voyager Digital last traded at $6.63 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply