Voyager Digital Swings to Profit in Q2

Shares of Voyager Digital (TSE: VOYG) jumped more than 10% in early trading Tuesday after the crypto company reported a strong rise in revenue and a profit.

Q2 2022 Results

Revenue for the quarter ended December 31 came in at $164.8 million, an increase of more than 4,400% from $3.5 million in the prior-year quarter.

Net income was $2.6 million in Q2 2022, compared to a loss of $9 million in Q2 2021.

Total funded accounts exceeded 1,074,000 and were up 25% from 860,000 at the quarter ended September 30, 2021. Total assets on platform grew to $5.9 billion from $4.3 billion as of September 30.

CEO Commentary

Voyager CEO and co-founder Stephen Ehrlich said, “The launch of our Voyager Debit Card, which allows for payroll direct deposits, is the next step in revenue diversification. We recently added engineering resources to our team which allowed us to add more tokens to the trading platform, and tokens available for staking. By the end of the March quarter, we expect our desktop platform and dark mode will be added to our product offering. We are also building towards adding equities to the platform, expanding the platform to Europe and Canada, and offering an NFT product and wallet. All of these are significant opportunities for the Company; and with our NFT platform we intend to make the viewing, acquiring and custody of NFTs easy for consumers.”

Wall Street’s Take

Last month, Keefe Bruyette analyst Kyle Voigt initiated coverage of VOYG with a Buy rating and C$19 price target. This implies 78.9% upside potential.

Bruyette stated that Voyager offers investors “unique exposure” to growth in the underlying crypto market, and “holds a number of meaningful, idiosyncratic opportunities ahead.”

The analyst sees potential for “material upside” in the stock from the company’s international expansion, the launch of an equities brokerage, as well as from new services such as traditional lending.

The rest of the Street is bullish on Voyager with a Strong Buy rating based on four Buys. The average Voyager Digital price target of C$27.46 implies 158.6% upside potential to current levels.

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