Coinbase Reports 22% Revenue Growth Despite Net Loss Of $79M

US-based cryptocurrency exchange Coinbase had some cause for cheer as it released its first-quarter revenue report, with results exceeding expectations.

The exchange reported a net loss of $79 million but also reported a 22% growth in revenue.

Analyzing The First Quarter Revenue Report

The report, released on the 4th of May, saw Coinbase Global report a loss for the fifth consecutive quarter. The results potentially indicated that users and investors had fallen out of the company, despite a steady recovery of the crypto space during the first quarter. However, the numbers posted have beaten expectations, with the company reporting a loss of $79 million. This figure is significantly lower than the $430 million loss reported during the same period last year. Analysts were expecting a loss of over $316 million for the company at a net loss per share of $1.45.

Coinbase also reported that its net revenue increased by 22% quarter over quarter, rising to $736 million, with its operating expenses falling by 24% from the previous quarter. The reduction in operating expenses can be attributed to the company cutting down its workforce. Coinbase had laid off 950 employees in January, with the restructuring process costing the company $144 million. However, Coinbase stated that restructuring helped it become more efficient, allowing it to “do more for less.”

More Numbers

Coinbase also reported that its transaction revenue increased by 16% to $375 million. Consumer transaction revenue also increased by 14%, while institutional transactions rose by 67%. Its quarterly trading volume stood at $145 billion, which was equal to the numbers posted during the previous quarter. The company’s “assets on platform,” which refers to the US dollar value of various digital assets, rose by 62% to $130 billion.

Coinbase also reported an increase in its quarter-over-revenue in several other categories. Its subscription and services revenue reported an increase of 28%, rising to $362 million. Additionally, blockchain rewards grew by 18%, rising to $74 million, while custodial fee revenue reported an increase of 48% to $17 million. Last but not least, interest income reporte

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Author: Amara Khatri

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