Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Coinbase Stock Rises 8% After Company Beats Q1 Revenue Estimates

Published 05/05/2023, 10:50 PM
Updated 05/05/2023, 11:15 PM
© Reuters Coinbase Stock Rises 8% After Company Beats Q1 Revenue Estimates
COIN
-

  • Coinbase (NASDAQ:COIN) reported an 81% reduction in YoY net loss during its recent earnings call for Q1’23.
  • The crypto firm beat revenue estimates by 18%, raking in $773 million in the first quarter of 2023.
  • The optimistic results led to an 8% spike in Coinbase’s share price in after-hours trading.

American crypto giant Coinbase delivered a rather optimistic financial update earlier today during its earnings call for the first quarter of 2023. The crypto exchange beat its revenue estimates by 18% while bringing down its year-over-year net loss by a whopping 81%. Furthermore, the firm reported a positive adjusted EBITDA for Q1’23.

According to the quarterly earnings report posted on Coinbase’s website, the company grew its total revenue by 23% compared to the previous quarter, raking in net revenue of $736 million in the first quarter of 2023. In addition to the revenue growth, the firm managed to bring down its recurring operating expenses by 37% QoQ.

One of the most impressive metrics posted by Coinbase was the 81% reduction in the YoY net loss, going from $430 million in Q1’22 to just $79 million in Q1’23. Despite incurring a $144 million restructuring expense, the American crypto exchange managed to generate $284 million in adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).

Regarding Coinbase’s balance sheet, the firm holds a whopping $5.3 billion in USD resources. As for the crypto exchange’s performance, the first quarter total transaction revenue grew 16% QoQ to reach $375 million. Consumer transaction revenue also surged by 14%. Institutional transaction revenue saw the fastest growth, 67%.

The optimistic financial report from Coinbase led to a considerable hike in its share price ($COIN) earlier today. The stock gained more than 8% in after-hours trading, reaching as high as $53.7.

Speaking on the outlook for the second quarter, Coinbase stated, “Crypto market cap and crypto asset volatility have diverged in Q2 compared to Q1. We anticipate a sequential decline in subscription and services revenue, largely driven by the decline in USDC market cap.”

The post Coinbase Stock Rises 8% After Company Beats Q1 Revenue Estimates appeared first on Coin Edition.

See original on CoinEdition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.