Financial Data and Key Metrics Changes - Third quarter revenue declined 25% year-over-year to 179.5 million in the same quarter last year, primarily due to unfavorable legislation in California and regulatory changes in other states [15][12]. - Adjusted gross profit decreased 17% to 2.3 million, driven by lower operating expenses [19]. - Adjusted EBITDA decreased to 17.25 million, with 5.8 million generated in Q3 2024 [13][21]. Business Line Data and Key Metrics Changes - The company ended the quarter with approximately 8,300 active machines, reflecting successful kiosk network growth [7]. - The profit share program expanded by 433 Bitcoin ATMs since the start of Q3, totaling over 1,000 ATMs in the program [9]. - Median transaction size continues to rise year-over-year, indicating improved performance in relocated kiosks [8]. Market Data and Key Metrics Changes - The company is preparing for international expansion, with over 300 kiosks shipped for an upcoming launch in Australia [10]. - The company is actively pursuing opportunities in New York State, which remains a significant growth market [11]. Company Strategy and Development Direction - The growth plan focuses on international expansion, deploying remaining kiosks from inventory, and pursuing regulatory approval in New York [10][11]. - The company aims to optimize its operations for profitability and positive cash flow, with a potential cash dividend for shareholders in 2025 [13][22]. Management's Comments on Operating Environment and Future Outlook - Management views 2024 as the low point for the business, with expectations for growth ahead [12]. - The company is optimistic about the regulatory environment becoming less harsh, which could benefit operations [26][27]. - Management is focused on improving vendor pricing, lowering professional costs, and optimizing customer markups to drive profitability [23]. Other Important Information - The company holds 11.3 Bitcoin in its investment wallet as of the end of Q3 2024 [14]. - The company is exploring the best ways to utilize cash to create shareholder value, including the potential for a cash dividend [13][22]. Q&A Session Summary Question: Outlook for the Bitcoin ATM industry in the U.S. from a regulatory standpoint - Management believes the cryptocurrency industry will face less harsh regulations under the new administration, which could positively impact operations [26][27]. Question: Update on the Bitcoin treasury strategy - The company is excited about its Bitcoin treasury and is focused on paying off preferred dividends before considering expanding the treasury [28][29]. Question: Productivity ramp of new kiosks - Management confirmed that new kiosks are ramping up in volume as expected, with median performance in the first 90 days averaging around 2,000 [32][34].
Bitcoin Depot (BTM) - 2024 Q3 - Earnings Call Transcript