Bitcoin Depot Inc. Q4 FY2024 earnings call

Key Messages - Kiosk Growth: Ended 2024 with approximately 8,457 active machines, expecting continued growth in 2025. - BTM Relocation Strategy: 3,800 kiosks installed for less than one year; typically reach breakeven in 4-5 months; BTMs have almost no correlation to Bitcoin price, with payback periods of less than 8 months. - Retail Partnerships: Secured early extension with Circle K, added twelve months to agreement; deployed fifty additional ATMs with a convenience store operator in the southwestern US. - Growth Strategy: - International Expansion: Shipped over 300 kiosks for Australia launch in 2025, targeting additional countries. - Deploying Remaining Kiosks: Remaining kiosk inventory could help reach ~10,000 installed fleet. - Pursuing New York State: In regular dialogue with regulators to secure license, no update on timeline but hopeful in 2025.

Fourth quarter revenue was $136.8 million compared to $148.4 million in the prior year's fourth quarter. Adjusted gross profit for the fourth quarter of 2024 increased 18% to $25.4 million. Adjusted EBITDA increased 34% to $12 million for the fourth quarter of 2024. GAAP net income for the fourth quarter of 2024 was $5.4 million compared to a net loss of $1.7 million in the prior year's fourth quarter. Revenue contribution details weren't explicitly broken down by product segment beyond the overall financials.

Forward-Looking Statements - Q1 2025 revenues anticipated between $151 million and $154 million, representing 9-11% growth compared to Q1 2024. - Adjusted EBITDA for Q1 2025 projected between $12 million and $14 million, over 200% growth compared to Q1 2024. - Deploying kiosks increases fixed costs but expected to drive growth later in 2025 and beyond.

Risks - Forward-looking statements involve risks and uncertainties beyond control, see SEC filings for detailed risks. - Potential regulatory impacts, including the Crypto ATM Fraud Prevention Act introduced, though new administration is seen as friendly to crypto, reducing concern about negative legislation passing. - International expansion may initially burn cash as kiosks ramp up performance.

Q: How is the overall global Bitcoin ATM market expected to grow in 2025 and Bitcoin Depot's growth within that context?

A: Brandon Mintz stated global growth may not be significant in 2025 vs 2024, Australia to see growth, smaller operators struggling with regulation and competition.

Q: What's the status of 1,600 kiosks in inventory, including those in Australia, and growth expectation?

A: 1,600 includes Australia kiosk inventory; aim to reach higher installed fleet, with Australia expansion potentially accelerating growth.

Q: On gross margin and OpEx run rate?

A: Gross margin at 18.6% due to optimizing spread charge, renegotiating contracts, declining rents; OpEx run rate expected to be ~$15 million, can come down further as legal costs reduce.

Q: On international expansion breakeven and usage velocity?

A: International expansion will initially burn cash; using app to spend Bitcoin at Circle K not a core focus, core value is cash on-ramp.

Q: Regulatory environment trickle-down and M&A?

A: Federal administration friendly to crypto, state-level varies; on M&A, generally see competitors not understanding value, more likely internationally for strategic reasons but not expecting much M&A activity currently.