Coinbase printed its end-of-year shareholder letter right this moment, Feb. 21, by which it described its monetary standing for the earlier quarter and for everything of 2022.
Coinbase publishes income, shareholder knowledge
Coinbase stated that it noticed its whole buying and selling quantity for 2022 decline by 50% year-over-year. It additionally noticed its transaction income for 2022 fall by 66% by the identical metric.
The corporate stated that it nonetheless remained “resilient … regardless of main shocks to the system.” Coinbase attributed its decline in efficiency to 2 high-profile collapses: that of Luna and Terra in Might 2022 and that of FTX in November 2022. These occasions brought on the crypto market to lose 64% of its worth, in flip affecting Coinbase’s personal income.
The corporate’s web full-year income (which incorporates extra than simply its transaction income) fell from $7.4 billion in 2021 to $3.1 billion in 2022.
Coinbase additionally famous that it has diversified its revenues into subscriptions and providers, permitting it to expertise elevated quarterly income. The corporate’s fourth-quarter web income in 2022 was $605 million. Although that quantity is down considerably from $2.49 billion in This fall 2021, it’s up 5% from $576 million within the third quarter.
The agency’s web loss per share was $2.46 for the fourth quarter of 2022 and $11.81 for the complete 12 months of 2022.
Different knowledge factors of curiosity
Coinbase famous that its working bills had been $1.2 billion and up 3% quarter-over-quarter, because it anticipated. The corporate stated that, throughout 2022’s market crises, it “turned clear that [Coinbase] had employed too many individuals too rapidly.” It alluded to 2 layoffs in mid-2022 and early 2023 and stated the newest layoff and different efforts ought to scale back bills by over 30% this quarter.
The corporate stated that it ended the fourth quarter of 2022 with $5.5 billion of U.S. greenback assets, a decline of three% or $148 million from the earlier quarter.
Coinbase closed the shareholder letter by asserting that it believes it’s in a powerful place to carry out nicely whilst regulation impacts the crypto trade. It famous its previous engagements and settlements with the New York Division of Monetary Service (NYDFS) and the U.S. Securities and Change Fee (SEC).
It additionally famous that early 2023 has seen an enchancment within the crypto market, with whole market capitalization up 40% 12 months thus far. The agency noticed $120 million of transaction income in January 2023 however warned buyers “to not extrapolate these outcomes ahead.”
Coinbase is among the largest cryptocurrency exchanges. It noticed $1.7 billion of buying and selling quantity right this moment. Its inventory (COIN) is valued at $62.07, down 4.8% right this moment.
