BitGo Q2 revenue jumps on higher asset sales

OverviewDigital asset infrastructure firm's Q2 revenue rose 80% yr/yr, driven by higher asset salesCompany posted Q2 net loss, reversing prior-year profit due to unrealized losses on digital assetsBitGo authorized $50 mln share repurchase, expects $15 mln in annualized cash savingsOutlookCompany did not provide specific financial guidance for the current quarter or full yearResult DriversDIGITAL ASSET SALES - Revenue growth was mainly driven by higher digital asset sales activity, though margins fell due to lower spreads and product mix changesUNREALIZED DIGITAL ASSET LOSSES - Net loss was primarily due to an $18.8 mln unrealized loss on digital assets, compared with a $55.8 mln unrealized gain in the prior-year periodCOST REDUCTIONS - Company sharpened investment priorities and expects about $15 mln in annualized cash savings from operating model changesCompany press release:Key DetailsMetricBeat/MissActualConsensus EstimateQ2 Revenue$4.33 blnQ2 Loss Per Share$0.16Q2 Net Loss$19 mlnQ2 Adjusted EBITDA-$4.20 mlnAnalyst CoverageThe current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"The average consensus recommendation for the business support services peer group is "buy"Wall Street's median 12-month price target for BitGo Holdings Inc is $15.00, about 202.4% above its August 11 closing price of $4.96Reuters Recommended ReadsAug 10 - Bakkt Q2 revenue falls 70% on digital asset trading slowdownAug 11 - Fold Q2 revenue falls, misses estimates as bitcoin prices pressure activityAug 10 - Strive Q2 net loss widens on bitcoin value dropFor questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .