On Monday, Bakkt Holdings Inc. (NYSE:BKKT), a financial services company specializing in crypto assets, announced the immediate departure of Richard Lumb from its Board of Directors and Audit and Risk Committee. The company stated that Lumb's resignation was not due to any disagreements on operations, policies, or practices.
Following this departure, Bakkt's Board, with the Nominating and Corporate Governance Committee's recommendation, appointed Colleen Brown as a Class III director and Audit Committee member on Friday. Brown, 65, is recognized for her extensive executive experience, including roles as President, CEO, and director at Fisher Communications Inc., and leadership positions with media companies such as Belo Corp., Lee Enterprises, and Gannett. She has also founded Marca Global, a marketing and internet technology company.
Brown currently holds board positions at TrueBlue and Big 5 Sporting Goods, among others. Her career spans a range of corporate boards, including Spark Networks (OTC:LOVLQ) and American Apparel, where she served as board chair and interim CEO. With an undergraduate degree from the University of Dubuque and an MBA from the University of Colorado Boulder, Brown's expertise in strategic planning, operations, finance, technology, and corporate governance is expected to bring valuable insights to Bakkt Holdings.
In accordance with company policy, Brown will receive the standard compensation for non-employee directors and additional remuneration for committee service as detailed in Bakkt's proxy statement dated April 19, 2024. Furthermore, Bakkt will enter into an indemnification agreement with Brown, ensuring protection under Delaware law for her service to the company.
In other recent news, Bakkt Holdings reported a 33% increase in first quarter revenue to $17 million, despite a net loss of $21.3 million for the same period. The company plans to optimize costs, announcing a workforce reduction of 20% by year-end. In addition, Bakkt launched an Electronic Communication Network for institutional clients, and expects a positive shift in cash utilization towards the end of the year. The company also anticipates full-year revenues of $3,002 million to $4,447 million, with crypto revenue expected to be a significant contributor.
In leadership changes, Bakkt appointed Joe Henderson as Vice President, Chief Accounting Officer, and Principal Accounting Officer, and Ray Kamrath as Chief Commercial Officer for its crypto business. Henderson brings extensive experience in financial reporting and technical accounting, while Kamrath is expected to focus on scaling the business and extending its reach in the growing cryptocurrency market.
InvestingPro Insights
In light of the recent board changes at Bakkt Holdings Inc. (NYSE:BKKT), it's pertinent to consider the company's financial health and market performance. According to real-time data from InvestingPro, Bakkt has a market capitalization of $128.53 million. The company's price-to-earnings (P/E) ratio stands at -1.16, reflecting its current lack of profitability. Additionally, the revenue growth for the last twelve months as of Q1 2024 is reported at an astonishing 2749.18%, a figure that may catch the eye of potential investors.
InvestingPro Tips suggest caution, noting that analysts anticipate a sales decline in the current year and do not expect the company to be profitable within this period. Moreover, the stock has been marked by high price volatility, which could be a concern for risk-averse investors. On a more positive note, Bakkt's stock has shown a strong return over the last three months, with a 91.96% price total return, signaling a potential turnaround or a favorable market reaction to recent developments.
For those interested in a deeper dive into Bakkt's financials and stock performance, InvestingPro offers additional insights and tips. Currently, there are 13 additional tips available, which can be accessed through InvestingPro's platform. Readers looking to explore these tips and gain an edge in their investment strategy can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.