Executive Summary

Q3 revenue was $20.1M, up 68% YoY, but down ~10% sequentially; net income was $0.8M and operating loss was ~$0.052M, reflecting mark-to-market swings from digital assets under ASU 2023-08 .
Exchange provider processed volume reached $0.96B (+69% YoY, -9% QoQ), and Monthly Active Users rose to 1.6M (vs. 1.1M a year ago; 1.5M in Q2), driven by crypto market strength and ramping partnerships (Magic Eden, Ledger) .
Strategic progress: launched Passkeys, expanded Magic Eden Wallet to mobile, and integrated XO Swap into Ledger Live; management highlighted a strong start to Q4 alongside ongoing NYSE uplisting review (fifth SEC comment letter) .
No formal quantitative guidance; management reiterated focus on profitability and disciplined scaling; estimate comparisons to Wall Street consensus were unavailable at time of request due to S&P Global data access limits .

What Went Well and What Went Wrong

What Went Well

Strong year-over-year growth and profitability: “In Q3, we grew revenue 68% year-over-year to $20.1 million and achieved net income of $0.8 million” .
User and volume momentum: exchange provider processed volume $0.96B (+69% YoY), MAUs 1.6M vs. 1.1M last year; early partnership traction supports efficient user acquisition .
Product and partnership execution: Magic Eden Wallet expanded to mobile, Ledger partnership integrated XO Swap, and Passkeys launched to simplify onboarding; “These achievements reflect the strength of our product innovation” .

What Went Wrong

Sequential revenue decline (-10% QoQ) from seasonally slower market activity (late summer/early fall), after an exceptionally strong H1 .
Operating margin remained slightly negative (“<-1%”) as operating loss (~$52k) and mark-to-market accounting introduced volatility; non-operating items helped deliver net income .
Continued losses on digital assets: net loss on digital assets ~$370k in Q3 vs. ~$17.2M in Q2, reflecting treasury exposure and ASU 2023-08 adoption .

Financial Results

Summary Income Statement vs. Prior Year, Prior Quarter, and Estimates

Metric	Q3 2023	Q2 2024	Q3 2024	Consensus Estimate (Q3 2024)
Revenue ($USD Millions)	$11.980	$22.308	$20.117	N/A*
Cost of Revenues ($USD Millions)	$7.738	$10.767	$11.333	N/A*
Gross Profit ($USD Millions)	$4.242	$11.541	$8.784	N/A*
Operating Income ($USD Millions)	$(0.713)	$(14.745)	$(0.052)	N/A*
Operating Margin (%)	-6%	-66%	<-1%	N/A*
Net Income ($USD Millions)	$(0.251)	$(9.606)	$0.843	N/A*
Diluted EPS ($USD)	$(0.01)	$(0.37)	$0.03	N/A*

*Estimates unavailable due to S&P Global request limits. Values would be retrieved from S&P Global.

Note: Q3 2024 operating loss (~$52k) implies operating margin “<-1%” per company presentation; we use disclosed margins rather than derived calculations .

Revenue by Category (Q3)

Category	Q3 2023 ($M / %)	Q3 2024 ($M / %)
Exchange aggregation	$11.2 / 93.7%	$18.1 / 90.1%
Fiat on/off-boarding	$0.6 / 4.8%	$0.9 / 4.2%
Staking	$0.2 / 1.4%	$0.5 / 2.4%
Consulting	- / -	$0.3 / 1.5%
Other	<$0.1 / 0.1%	$0.3 / 1.8%
Operating Revenues	$12.0 / 100%	$20.1 / 100%

KPIs and Operating Metrics

KPI	Q3 2023	Q2 2024	Q3 2024
Exchange provider processed volume ($USD Billions)	$0.57	$1.05	$0.96
Monthly Active Users (Millions)	1.1	1.5	1.6
Digital assets and cash ($USD Millions)	N/A	$195.5	$194.7
Net loss on digital assets ($USD Millions)	~$0.357	~$17.232	~$0.370

Discrepancy note: Q3 digital and liquid assets were cited as $194.7M in the press release and $194.6M on the call; we present the press release figure for consistency .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/EPS/margins guidance	FY/Q4	None provided historically	None provided; management cited strong start to Q4 and continued profitability focus	Maintained (no formal guidance)
Adjusted EBITDA	FY	Management targeted maintaining positive Adjusted EBITDA (Q1 commentary)	Not reiterated in Q3; continued emphasis on profitability and disciplined scaling	Maintained qualitative stance
Capital allocation / liquidity	FY	Uplisting planned to NYSE American (May target, earlier)	Ongoing NYSE uplisting review; fifth SEC comment letter; aim to improve stock liquidity	Process update

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3)	Trend
Partnerships (Magic Eden, Ledger)	Q1: Launch of Wallet-as-a-Service with Magic Eden; early traction . Q2: Exchange aggregation ~89% revenue; MAUs 1.5M .	Expanded Magic Eden Wallet to mobile; Ledger Live integration of XO Swap; strong early momentum .	Strengthening distribution via partners.
Product innovation (Passkeys)	Q1: Announced frictionless onboarding and XO Pay to expand fiat capabilities .	Launch of Passkeys enabling FaceID/TouchID onboarding; developer-friendly wallet embedding .	Accelerating developer-led adoption.
Macro/crypto environment	Q1: Spot Bitcoin ETFs approval; BTC appreciation drove usage . Q2: Seasonality/volatility noted .	Post-election momentum; BTC over $70k–$80k; stablecoin issuance >$100B; strong start to Q4 usage .	Supportive macro tailwinds.
Regulatory/legal	Q1: FCA removal from warning list; NYSE uplisting planned .	Received fifth SEC comment letter; continuing work to clear uplisting; focus on liquidity .	Progressing, timeline extended.
Revenue mix and seasonality	Q1: Swap volumes near 2021 levels; non-swap revenue rising . Q2: Exchange aggregation 89.4% of revenue; volume $1.05B .	Exchange aggregation 90.1%; sequential revenue decline due to seasonally slower activity .	Mix stable; seasonal dip QoQ.
Treasury and accounting	Q1: ASU 2023-08 adopted; large mark-to-market gain in net income . Q2: Large digital asset loss drove operating loss .	Digital assets loss ~$370k; fair value accounting continues; corporate treasury $194.6M–$194.7M; no debt .	Ongoing P&L volatility from crypto marks.

Management Commentary

“In Q3, we grew revenue 68% year-over-year to $20.1 million and achieved net income of $0.8 million. We launched an exciting new partnership with Ledger... expanded our partnership with Magic Eden to mobile... and launched Passkeys” — JP Richardson, CEO .
“Year-over-year revenue growth was driven by increased user activity and the ramping up of our partnerships... Exchange aggregation made up 90.1% of total revenue... the sequential decline was due to seasonally slower activity” — James Gernetzke, CFO .
“We ended the quarter with $194.6 million of digital and liquid assets... and no debt... our healthy corporate treasury provides flexibility to invest in technology, services, M&A, and marketing” — CFO .
“Stablecoins are drawing capital to the crypto space... total issuance exceeded $100 billion... this translated to a strong start to Q4 for Exodus” — CEO .
“Passkeys enables developers to embed our wallet capabilities... eliminating 12-word secret phrases” — CEO .

Q&A Highlights

The transcript provided prepared remarks and indicated a Q&A session would follow, but Q&A content was not available in the retrieved document; management reiterated business model drivers, seasonality, treasury composition, and uplisting status in prepared comments .

Estimates Context

Wall Street consensus (S&P Global) estimates for Q3 2024 EPS and revenue were unavailable at the time of request due to S&P Global daily request limit constraints; as a result, we cannot quantify beats/misses vs. consensus in this recap [GetEstimates error].

Key Takeaways for Investors

Q3 was solid on a YoY basis with $20.1M revenue (+68% YoY) and positive net income, but sequentially softer (-10% QoQ) due to seasonality; watch for Q4 follow-through given management’s “strong start” comment .
Distribution-led growth is gaining traction: Magic Eden mobile expansion and Ledger’s XO Swap integration broaden user access with minimal custodial risk; this should support exchange aggregation revenue in volatile markets .
Revenue mix remains dominated by exchange aggregation (~90%), indicating sensitivity to crypto volumes/volatility; fiat and staking are rising but still sub-10% combined .
Earnings volatility from ASU 2023-08 fair value accounting persists (digital asset losses ~$370k in Q3 vs. ~$17.2M in Q2); treasury size and crypto price moves can swing reported operating/net results materially .
Balance sheet is robust: ~$194.7M digital assets and cash and no debt provide flexibility for product investment and M&A; liquidity improvements may hinge on the NYSE uplisting resolution .
User base growth remains healthy (MAUs 1.6M, +YoY), supported by partnerships and product enhancements (Passkeys); monitor MAU and processed volume as leading indicators .
With no formal guidance and unavailable consensus estimates here, focus near-term on on-chain activity trends, partner activation (Ledger, Magic Eden), and Q4 usage momentum post-election and BTC strength for trading setups .

Exodus Movement, Inc. (EXOD)·Q3 2024 Earnings Summary