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Coinbase reports 22% revenue growth, net loss of $79M for Q1; notes lower volatility in Q2

Press Releases Crypto News CryptoSlate Coinbase reports 22% revenue growth, net loss of $79M for Q1; notes lower volatility in Q2

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 laid off 950 employees in January. Though the restructuring strategy cost it $144 million, Coinbase said that it is now a “more efficient” company that can “do more for less.”

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).

Coinbase added that its balance sheet holds $5.3 billion in U.S. dollar resources, including cash, cash equivalents, USDC, and custodial account overfunding.

More revenue and activity trends

Coinbase’s transaction revenue increased 16% to $375 million, with consumer transaction revenue up 14% and institutional transaction revenue up 67%.

The firm reported a quarterly trading volume of $145 billion, equal to the previous quarter.

Coinbase reported that its “assets on platform” — that is, the U.S. dollar value of various digital assets stored on its services — increased 62% to $130 billion.

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.

Coinbase provides Q2 outlook

Coinbase also provided its outlook for the second quarter of the year.

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.

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’s higher legal expenses. The company has an ongoing conflict

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Author: Mike Dalton

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