Voyager Digital Ltd. (VYGR) posted solid financial results in its third quarter, thanks to continued accelerated growth in April and May. The momentum has continued in the fourth quarter to date. Voyager Digital provides a platform to trade crypto assets to retail and institutional investors.
Total revenue in Q3 2021 came in at $60.4 million, more than a 16x increase from $3.6 million in Q2 2021.
The crypto-asset provider posted an operating profit of $30 million for the three months ended March 31, 2021, with an operating margin of 50%. This is the first quarter where Voyager Digital posts an operating profit.
New funded accounts in May have already surpassed the whole month of April, with currently 1.6 million verified users.
Voyager’s CEO and Co-founder Steve Ehrlich said, “In the March quarter, we saw exponential adoption of cryptocurrencies as a recognized and investable asset class, which translated into significant growth for Voyager. The U.S. market continues to outperform given our compelling and competitive differentiation. The management team is committed to continuing our strong execution, even as we expand our international market reach. Our team is extremely proud of what we have accomplished to date.”
Voyager continued to hire staff and make upgrades to its systems infrastructure during the quarter to make the crypto-asset platform more scalable and secure. (See Voyager Digital Ltd. stock analysis on TipRanks)
Earlier in May, Craig-Hallum analyst George Sutton initiated coverage of VYGR with a Buy rating and a $32.00 (C$38.54) price target, for 67% upside potential.
According to Sutton, Voyager is growing faster than its capacity allows, which is the best problem a growth company may have. He believes “dramatic growth will continue” and notes the crypto-asset provider is quickly expanding its funnel.
The rest of the Street is bullish on VYGR with a Strong Buy rating based on 3 Buys. The average analyst price target of C$40.46 implies 100% upside potential to current levels. Shares have gained 360% year-to-date.
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