Coinbase has released its quarterly results which show a 22% increase in revenue since the previous quarter. However, this is 37% less than the first quarter of 2022. Let’s look at all this in detail to judge the health of the company.
Coinbase revenue finds its way back up
In its quarterly results released yesterday, Coinbase showed its revenue was up 22% from the last quarter of 2022 to the first of this year. from $604.9 million to $736.4 million :
Figure 1 — Coinbase quarterly revenue
As we can see, year over year, however, these revenues are declining. Indeed, with more than 1.16 billion dollars in the first quarter of 2022, the company suffered a 37% drop. However, these elements must be put into context: at the end of March 2022, Bitcoin (BTC) was still trading at $46,000 and the market had no idea of the crises that awaited it.
Compared to other quarters, there are also other interesting statistics. In effect, we observe a sharp decrease in net lossesrising to $79 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) also outperforming the previous four quarters:
Figure 2 — Extract from Coinbase’s quarterly balance sheet
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The need to build solid foundations
After a difficult year 2022 for Coinbase and many layoffs, the objective was therefore to clean up the accounts to build solid foundations for the future :
“This quarter marked a turning point in our drive to build a more efficient and financially disciplined business; a company capable of doing more with less. We have reduced costs, doubled down on operational excellence and risk management, and continue to drive product innovation and regulatory clarity. »
It should also be noted that these results were received positively, with shares up 9.20% on post-closing data, increasing it from 49.22 to 53.75 dollars.
Among other notable information from the balance sheet, we learn that over the past quarter, Bitcoin represented 32% of volumes for 36% of transaction income, while ETH statistics on these same metrics are 24% and 18%. %.
Retail investors generated $21 billion in volume, and 124 billion for institutional investors.
On the operating expenses side, the balance sheet shows, for example, a sharp increase in restructuring costs with $144.5 million, and a drop in investments in technology and development with $358 million.
At the end of the day, those operational expenses are down, and Coinbase ends the first quarter of 2023 with 3,535 full-time employees :
Figure 3 — Coinbase operational expenses
As we have seen this week, Binance remains far ahead of the centralized cryptocurrency platform market. Nevertheless, after the regulatory efforts of Coinbase for several months as well as these restructurings, she probably didn’t say her last word.
👉 Also in the news — Bernard Arnault, the richest man in the world, owns non-fungible tokens (NFTs)
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Source: Coinbase
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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