Voyager Digital loses $8.99M (U.S.) in fiscal Q2 2021
2021-03-01 11:45 ET - News Release
Mr. Stephen Ehrlich reports
VOYAGER DIGITAL REPORTS FISCAL 2021 SECOND QUARTER RESULTS AND PROVIDES BUSINESS UPDATE
Voyager Digital Ltd. has released financial results for its fiscal 2021 second quarter ended Dec. 31, 2020, and provided shareholders with a business and operational update.
"Our December quarter results reflect the continued mainstream acceptance of digital assets and crypto-currencies as more conventional investors embraced Bitcoin and major companies stated their intentions to convert substantial parts of their Treasury into Bitcoin," said Stephen Ehrlich, Co-founder and CEO of Voyager. "Voyager started to capture significant market share with our customer friendly, easy to use, zero commission agency broker platform for trading and investing in crypto-currencies. Now, we are better positioned than ever to grow our business and reach a broader audience of mainstream investors by educating them about investment opportunities with digital assets and their increasing global acceptance. Voyager is becoming the platform of choice for retail investors, as evidenced by our unprecedented growth in 2021 to date."
Voyager is pleased to provide stakeholders with an update for the following key metrics for the month ended February 28, 2021:
Preliminary revenue from operations in excess of US$20 million
Net deposits for the month exceeded US$400 million
Assets Under Management (AUM) exceeded US$1.7 billion
Trades per day for the month averaged more than 70,000
New funded accounts for February 2021 were in excess of 70,000, with total funded accounts over 175,000 as of February 28, 2021
Verified Users on the platform were approximately 605,000 at February 28, 2021
The value of customer trades for February increased to US$1.6 billion
February 2021January 2021December 2020
Preliminary Revenue $20M $8.6M $1.7M
Net Deposits $400M $170M $28M
AUM $1.7B $750M $230M
Trades Per Day 70,000 30,000 6,500
New Funded Accounts 70,000 65,000 6,000
New Verified Users 190,000 250,000 36,000
Principal Value traded$1.6B $840M $150M
All figures are preliminary and unaudited and subject to final adjustment. All amounts are in US dollars, unless otherwise indicated.
Mr. Ehrlich continued, "With recently completed capital raises of over US$146 million, our balance sheet is stronger than ever. We are excited to see a rapidly growing group of investors utilizing our platform and look forward to delivering value to all our stakeholders. We intend to deploy capital to accelerate our growth through strategic marketing initiatives, further development of our technology infrastructure, and building staff across all departments to position Voyager as the go to digital financial services firm of the future."
As part of the scaling of its management team, the Company recently added David Brosgol as General Counsel, Dan Costantino as Chief Information Security Officer, and Jamie Cabezas to lead Voyager's HR effort. Voyager expects to continue building out its team throughout the course of the year and to triple its workforce in 2021. In addition, in February, Voyager welcomed Krisztian Toth, a partner at the law firm of Fasken Martineau DuMoulin LLP, to the Company's Board of Directors as part of its efforts to strengthen its corporate governance.
Voyager expects to continue bringing new products to The Voyager platform as well as to advance its geographic expansion. In 2021 and beyond, the Company anticipates adding debit cards, credit cards, stock trading and the ability to trade on margin to its offerings. Complementing this, Voyager will look to grow internationally by expanding into Canada and Europe.
Mr. Ehrlich concluded, "Voyager's focus on the retail investor is becoming more and more popular and our loyal community's social media outreach, combined with our own increased marketing activities, is helping to drive users signing up in record numbers on Voyager."
The Company also announced that Shingo Lavine has resigned from the Board to pursue additional non-competitive opportunities. Philip Eytan, Chairman of Voyager said "On behalf of the Board, I thank Shingo for his contribution to Voyager and for all the work he has done for the Company and wish him well in his new pursuits."
Q2 Fiscal Year 2021 Highlights
For the fiscal quarter ended December 31, 2020, the Company recorded revenues of US$3.6 million and ended the quarter with approximately 40,000 customer funded accounts. As of December 31, 2020, AUM was over US$230 million, placing Voyager in a strong position for the new calendar year. For more detailed information, the Company encourages investors to read its interim financial statements and related Management Discussion & Analysis ("MD&A") for the three and six months ended December 31, 2020, which will be filed with SEDAR today.
3 months ended 6 months ended
12/31/20 12/31/19 12/31/20 12/31/19
Revenue
Fees $2,056,305 $88,146 $3,681,817 $160,376
Interest Revenue 1,512,993 - 1,888,218 -
Total Revenue 3,569,298 88,146 5,570,035 160,376
Operating Expenses
G&A 5,503,539 2,170,494 9,742,281 3,687,502
Product Development 805,770 569,898 1,232,287 1,676,959
Total Operating Expenses (6,309,309) (2,740,392)(10,974,568) (5,364,461)
Total Other Income/ (Loss)(6,256,547) 1,672,116 (7,566,924) 1,705,674
Net and comprehensive loss($8,996,558)($980,130) ($12,971,457)($3,498,411)
3 months ended 6 months ended
Key Stats 12/31/20 12/31/19 12/31/20 12/31/19
Principal Traded Volume $339,650,381$13,551,569$555,157,186 $34,171,375
Net Deposits $79,490,697 $4,594,518 $119,123,644 $7,145,528
Funded Accounts 42,865 8,553 42,865 8,553
Verified Accounts 158,557 24,402 158,557 24,402
Trades 450,385 31,148 806,813 54,954
Note: Total Other Income / (Loss) includes: (a) $5.2 million and $5.5 million of gains on digital asset exchange for the three and six months ended December 31, 2020, respectively and $0.2 million and $0.1 million of losses of digital asset exchange for the three and six months ended December 31, 2019; (b) $10.6 million for change in fair value of investment for both the three and six months ended December 31, 2020; (c) ($6.2) million for change in fair value of digital currency loan payable for both the three and six months ended December 31, 2020; and (d) ($15.6 million) and ($17.1 million) for change in fair value of warrant liability for the three and six months ended December 31, 2020, respectively and ($0.2) million for both the three and six months ended December 31, 2020.
Conference Call
The Company will conduct a conference call today at 5:00 p.m. (Eastern Time) to review the results as well as provide an overview of the Company's recent milestones and growth strategy. A live webcast of the conference call can be accessed through the following link: Voyager Webcast Link
For more information on Voyager Digital, please visit www.investvoyager.com. The Voyager App is available for Android and iPhone.
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