{"id":11818,"date":"2023-05-05T00:04:12","date_gmt":"2023-05-05T00:04:12","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=11818"},"modified":"2023-05-05T00:04:13","modified_gmt":"2023-05-05T00:04:13","slug":"coinbase-reports-22-revenue-growth-net-loss-of-79m-for-q1-notes-lower-volatility-in-q2","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11818","title":{"rendered":"Coinbase reports 22% revenue growth, net loss of $79M for Q1; notes lower volatility in Q2"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Coinbase said May 4 that its net revenue increased by 22% quarter over quarter to $736 million and its operating expenses fell by 24% from the previous quarter.<\/p>\n<p>The reduction in operating expenses is related to the fact that the company\u00a0laid off 950 employees\u00a0in January. Though the restructuring strategy cost it $144 million, Coinbase said that it is now a \u201cmore efficient\u201d company that can \u201cdo more for less.\u201d<\/p>\n<p>The firm said that these trends resulted in a net loss of $79 million but generated $284 million in adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA).<\/p>\n<p>Coinbase added that its balance sheet holds $5.3 billion in U.S. dollar resources, including cash, cash equivalents,\u00a0USDC, and custodial account overfunding.<\/p>\n<h2>More revenue and activity trends<\/h2>\n<p>Coinbase\u2019s transaction revenue increased 16% to $375 million, with consumer transaction revenue up 14% and institutional transaction revenue up 67%.<\/p>\n<p>The firm reported a quarterly trading volume of $145 billion, equal to the previous quarter.<\/p>\n<p>Coinbase reported that its \u201cassets on platform\u201d \u2014 that is, the U.S. dollar value of various digital assets stored on its services \u2014 increased 62% to $130 billion.<\/p>\n<p>The company also saw its quarter-over-revenue increase in several other categories. Subscription and services revenue grew 28% to $362 million, blockchain rewards revenue grew 18% to $74 million, custodial fee revenue grew 49% to $17 million, and interest income grew 32% to $241 million.<\/p>\n<h2>Coinbase provides Q2 outlook<\/h2>\n<p>Coinbase also provided its outlook for the second quarter of the year.<\/p>\n<p>The firm expects transaction expenses to make up as much as 15% of its net revenue. Conversely, it expects to see $300 million in subscription and services revenue, a decline driven by a reduction in the market cap of USDC.<\/p>\n<p>The firm also said project that technology and development expenses, as well as general and administrative expenses, could reach $650 million. This represents an increase in costs and is partially due to Coinbase\u2019s higher legal expenses. The company has an ongoing conflict with the U.S. Securities and Exchange Commission\u00a0(SEC).<\/p>\n<p>Coinbase added that its sales and marketing expenses could be between $80 million and $90 million, partially driven by an NBA partnership and stock-based compensation.<\/p>\n<p>The company noted that crypto market cap and asset volatility diverged in Q2 compared to Q1, with the average crypto market cap coming in at $1.3 trillion, which is 17% higher when compared to the Q1 average of $1.1 trillion.<\/p>\n<p>Coinbase said crypto asset volatility in April was 25% lower than the Q1 average and had an impact on the company\u2019s transaction business as it generated about $110 million of total\u00a0 transaction revenue in April.<\/p>\n<p>The company warned investors not to extrapolate from this data, noting that \u201clast year\u2019s experience reminds us how quickly the market can evolve.\u201d<\/p>\n<p>Coinbase stock (COIN) is up 1.51% today and up 7.05% after hours.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/coinbase-reports-22-quarterly-revenue-growth-net-loss-of-79m\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase said May 4 that its net revenue increased by 22% quarter over quarter to $736 million and its operating expenses fell by 24% from the previous quarter. The reduction in operating expenses is related to the fact that the company\u00a0laid off 950 employees\u00a0in January. Though the restructuring strategy cost it $144 million, Coinbase said [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-11818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11818"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11818\/revisions"}],"predecessor-version":[{"id":11820,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11818\/revisions\/11820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11819"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}