Voyager Digital Reports Quarter Ended September 30, 2021

TSX: VOYG
OTCQX: VYGVF
Borse Frankfurt: UCD2

NEW YORK, Nov. 16, 2021 /CNW/ - Voyager Digital Ltd. ("Voyager" or the "Company") (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) one of the fastest-growing, publicly traded cryptocurrency platforms in the United States, today announced revenue and user metrics for the Fiscal 2022 First Quarter ended September 30, 2021.

"As we exit September and reflect on the growth of our platform, we're glad to report that our Company is stronger than ever," said Steve Ehrlich, CEO and Co-founder of Voyager. "Although the global crypto industry saw reduced volumes in the September quarter, our strategic decision to invest in customer acquisition and retention during that period has paid off as it resulted in a significant increase in downloads and a rise in the app rankings. That coupled with the volume uptick in the first half of the December quarter has Voyager well-positioned to exceed our June quarter record revenues in this quarter. If we look at our results on a calendar basis, we expect to exceed revenue of $360 million for the calendar year. We saw the September quarter as just a speed bump for the industry, experienced by other platforms as well, and Voyager has fared better than others on a comparative basis."

"The dedication to our marketing efforts in the quarter is paying off as Voyager has seen increased accounts and volume growth in October and November. We will continue to invest in customer acquisition, engagement and retention, led by our industry leading loyalty program," continued Ehrlich.

The Company is pleased to announce the following Fiscal 2022 First Quarter ended September 30, 2021 Financial and Operational Key Metrics:

• Revenue for the quarter is $65.6 million for the historical business plus the $15.9 million from the Coinify business, totaling $81.5 million. The $65.6 million in revenue is up over 3,280% compared to $2 million for the quarter ended September 30, 2020
• Operating Loss of $28.3 million for the quarter was incurred for strategic longer-term benefit, which has paid off and been reversed in the current quarter. Losses incurred were primarily due to investing in the loyalty and rewards program to continue user growth
• Total verified users on the platform stand at more than 2.15 million, up 23% from 1.75 million at fiscal year fiscal year ended June 30, 2021
• Total funded accounts exceed 860,000, up 29% from 665,000 at fiscal year ended June 30, 2021
• Total Assets Under Management grew to $4.3 billion from $2.6 billion at June 30, 2021 with Assets Under Management at present of just under $7 billion
• Improved our system architecture, focusing on scalability and security to handle rapid growth
• Increased our headcount to 231 as of September 30, 2021, from 141 at June 30, 2021, which includes the headcount added through the Coinify acquisition
• Acquired Coinify, a leading crypto payments processor and provider

All figures are preliminary and unaudited and subject to final adjustment. All amounts are in U.S. dollars, unless otherwise indicated.

"Although we continue to grow our funded accounts, Voyager's transactional volume is contingent on market volume. Voyager plans to continue to diversify its revenues by adding additional coins that generate staking rewards as well as adding to our revenue streams through products such as NFTs and crypto based debit cards," Ehrlich added.

Conference Call Details
Voyager will discuss its Fiscal 2022 First Quarter results today, November 16, 2021, via a conference call at 8:00 a.m. Eastern Time. To access the webcast, please register by clicking here. A live webcast and a replay will be available on the Investor Relations section of the Company's website at investvoyager.com/investorrelations/events.

About Voyager Digital Ltd.
Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2) is a fast-growing, publicly traded cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to trade over 65 different crypto assets using its easy-to-use mobile application and earn rewards up to 12 percent annually on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

The TSX has not approved or disapproved of the information contained herein.

Forward Looking Statements
Certain information in this press release, including, but not limited to, statements regarding future growth and performance of the business, momentum in the businesses, future adoption of digital assets, and the Company's anticipated results may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Voyager's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Forward looking statements are subject to the risk that the global economy, industry, or the Company's businesses and investments do not perform as anticipated, that revenue or expenses estimates may not be met or may be materially less or more than those anticipated, that trading momentum does not continue or the demand for trading solutions declines, customer acquisition does not increase as planned, product and international expansion do not occur as planned, risks of compliance with laws and regulations that currently apply or become applicable to the business or the interpretation or application of laws and regulations by regulatory authorities, and those other risks contained in the Company's public filings, including in its Management Discussion and Analysis and its Annual Information Form (AIF). Factors that could cause actual results of the Company and its businesses to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; changes in laws or approaches to regulation, the failure or delay in the adoption of digital assets and the blockchain ecosystem by institutions; changes in the volatility of crypto currency, changes in demand for Bitcoin and Ethereum, changes in the status or classification of cryptocurrency assets, cybersecurity breaches, a delay or failure in developing infrastructure for the trading businesses or achieving mandates and gaining traction; failure to grow assets under management, an adverse development with respect to an issuer or party to the transaction or failure to obtain a required regulatory approval. In connection with the forward-looking statements contained in this press release, the Company has made assumptions that no significant events occur outside of the Company's normal course of business and that current trends in respect of digital assets continue. Readers are cautioned that the key metrics disclosed in this press release, including, without limitation,  Assets Under Management and trading volumes fluctuate and may increase and decrease from time to time and that such fluctuations are beyond the Company's control. Forward-looking statements, past and present performance and trends are not guarantees of future performance, accordingly, you should not put undue reliance on forward-looking statements, current or past performance, or current or past trends. Information identifying assumptions, risks, and uncertainties relating to the Company are contained in its filings with the Canadian securities regulators available at www.sedar.com. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. The Company assumes no obligation to provide operational updates, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for digital assets may not continue and readers should not put undue reliance on past performance and current trends.  All figures are in U.S. dollars unless otherwise noted.

Press Contacts

Voyager Digital, Ltd.
Michael Legg
Chief Communications Officer
[phone]
[email protected]

Voyager Public Relations Team
[email protected]

Voyager Digital Ltd.
Unaudited Interim Condensed Consolidated Statements of Financial Position
(USD, in thousands)

		September 30, 2021			June 30, 2021
Assets
Current assets
Cash and cash equivalents		$	103,989		$	193,933
Cash held for customers		43,217			162,852
Crypto assets held ($921,847 and $0.0 restricted, respectively)		3,061,987			2,286,399
Crypto assets loaned		1,308,337			393,561
Investments		35,609			31,359
Other current assets		9,300			5,839
Total current assets		4,562,439			3,073,943
Goodwill and intangible assets		82,608			559
Other non-current assets		11,246			2,860
Total assets		$	4,656,293		$	3,077,362
Liabilities
Current liabilities
Crypto assets and fiat payable to customers		$	4,347,040		$	2,807,015
Crypto assets borrowed		47,132			36,832
Warrant liability		13,339			23,810
Other current liabilities		10,805			22,644
Total current liabilities		4,418,316			2,890,301
Other non-current liabilities		9,518			739
Total liabilities		4,427,834			2,891,040
Equity
Share capital		331,803			265,704
Share-based payments reserve		20,212			15,125
Warrant reserve		3,457			3,457
Treasury shares		(3,796)			(3,796)
Other comprehensive loss		(132)
Retained deficit		(123,085)			(94,168)
Total equity		228,459			186,322
Total liabilities and equity		$	4,656,293		$	3,077,362

Voyager Digital Ltd.
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss
(USD, in thousands except for shares data)

		Three Months Ended September 30,
		2021			2020
Revenues
Transaction revenue		$	43,514		$	1,626
Merchant services		13,957			-
Fees from crypto assets loaned		13,628			375
Staking revenue		7,707			-
Other revenue		2,701			-
Total revenues		81,507			2,001
Operating expenses
Rewards paid to customers		49,659			-
Marketing and sales		16,658			332
Cost of merchant services		13,708			-
Share-based payments		5,158			1,025
Compensation and employee benefits		5,826			1,024
Total compensation and employee benefits		10,984			2,049
Trade expenses		3,803			183
Customer onboarding and service		2,589			-
Professional and consulting		6,816			367
General and administrative		5,615			1,754
Total operating expenses		109,832			4,685
Loss before other income/ (loss)		(28,325)			(2,684)
Other income/ (loss)
Change in fair value of crypto assets held		(15,640)			222
Change in fair value of investments		4,250			-
Change in fair value of crypto assets borrowed		(9,158)			-
Change in fair value of warrant liability		10,471			(1,513)
Fees on crypto assets borrowed		(1,142)			-
Total other income/ (loss)		(11,219)			(1,291)
Net loss before provision for income tax		(39,544)			(3,975)
Benefit for income tax		(10,627)			-
Net loss		$	(28,917)		$	(3,975)
Other comprehensive loss
Foreign currency translation adjustment		(132)			-
Total comprehensive loss		$	(29,049)		$	(3,975)
Basic and diluted net loss per share		$	(0.18)		$	(0.04)
Basic and diluted weighted average number of common shares outstanding		159,861,285			110,981,827

SOURCE Voyager Digital (Canada) Ltd.

Related Links

https://www.investvoyager.com/