2Q22 Results. Voyager reported $164.8 million of revenue for 2Q22, in-line with the $165 million guidance. Merchant services added nearly $16 million of overall revenue and staking revenue was $20.7 million. We had projected revenue of $141 million. Voyager reported net income of $2.6 million for the quarter, or $0.01 per share, in-line with consensus, but below our $0.06 estimate.Key Metrics. Total verified users grew to 3.2 million as of December 31st, up from 2.15 million on September 30th, while total funded accounts rose to 1.074 million from 860,000 over the same period. Total funded to total verified fell to .336 from .400. We expect a portion of this reflects the hugely successful Mavericks promotion. Net new deposits in the fiscal second quarter totaled $1.04 billion, up from $827 million in the fiscal first quarter. Assets on the platform grew to $5.9 billion from $4.3 billion at the end of September.A Fly in the Ointment? Monday, BlockFi entered into a $100 million settlement with the SEC regarding its BlockFi interest accounts and failure to comply with state registration requirements. Although Voyager believes its rewards program is fundamentally different, the rewards program is a significant growth driver and any changes could negatively impact Voyager's growth.Updated Projections. It will continue to be a topsy-turvy ride. The drop in trading volume and crypto prices since January is likely to lead to reduced trading, lending, and staking revenue in 3Q22. As a result, we have scaled back our projections for the quarter. If volumes and pricing rebound, we may prove too harsh. For 3Q22, we estimate revenue of $113 million and a net loss of $16.7 million, or $0.09 per share.Favorable Risk/Reward. We are maintaining our Outperform rating and $25 price target (U.S. dollars). We believe cryptocurrencies will continued to be adopted, driving trading, lending, and staking revenue. Longer-term, Voyager continues to expand its offerings, both from a product standpoint and geographically. Voyager shares continue to trade at a substantial discount to the peer group. Read More >>