Coinbase Stock Rises 8% After Company Beats Q1 Revenue Estimates
- 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.
Our Q1’23 financial results are in and our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf pic.twitter.com/4iWAPGZNMh
— Coinbase (@coinbase) May 4, 2023
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.”
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