Bakkt Results Presentation Deck
NOTES
Statement regarding non-GAAP
financial measures
We present Adjusted EBITDA as a non-GAAP financial measure. We believe that Adjusted EBITDA provides relevant and useful information, which is used by
management in assessing the performance of our business. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization
and certain non-cash and/or non-recurring items that do not contribute directly to our evaluation of operating results. Adjusted EBITDA provides
management with an understanding of earnings before the impact of investing and financing transactions and income taxes, and the effects of
aforementioned items that do not reflect the ordinary earnings of our operations. This measure may be useful to an investor in evaluating our performance.
Adjusted EBITDA is not a measure of our financial performance under GAAP and should not be considered as an alternative to net income (loss) or other
performance measures derived in accordance with GAAP. Our definition of Adjusted EBITDA may not be comparable to similarly titled measures used by
other companies.
In addition to the items above, Adjusted EBITDA as a non-GAAP financial measure also excludes interest income and other income, and income tax benefit,
as these items are not components of our core business operations. Non-GAAP financial measures like Adjusted EBITDA have limitations, should be
considered as supplemental in nature and are not meant as a substitute for the related financial information prepared in accordance with GAAP. These
limitations include the following:
• unit-based compensation expense, which has been excluded from Adjusted EBITDA because the amount of such expenses in any specific period
may not directly correlate to the underlying performance of our business operations, has been, and will continue to be for the foreseeable future, a
significant recurring expense in our business and an important part of our compensation strategy;
the intangible assets being amortized, and property and equipment being depreciated, may have to be replaced in the future, and the non-
GAAP financial measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or other
capital commitments; and
• non-GAAP measures do not reflect changes in, or cash requirements for, our working capital needs.
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Because of these limitations, the non-GAAP financial measures should be considered alongside other financial performance measures, including net loss
and our other financial results presented in accordance with GAAP.
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