Coinbase saw 66% decline in transaction revenue in 2022 but remained “resilient”

Coinbase published its end-of-year shareholder missive today, Feb. 21, successful which it described its fiscal lasting for the erstwhile 4th and for the entirety of 2022.

Coinbase publishes revenue, shareholder data

Coinbase said that it saw its full trading measurement for 2022 diminution by 50% year-over-year. It besides saw its transaction gross for 2022 autumn by 66% by the aforesaid metric.

The institution said that it nevertheless remained “resilient … contempt large shocks to the system.” Coinbase attributed its diminution successful show to 2 high-profile collapses: that of Luna and Terra successful May 2022 and that of FTX successful November 2022. These events caused the crypto marketplace to suffer 64% of its value, successful crook affecting Coinbase’s ain revenue.

The company’s nett full-year gross (which includes much than conscionable its transaction revenue) fell from $7.4 cardinal successful 2021 to $3.1 cardinal successful 2022.

Coinbase besides noted that it has diversified its revenues into subscriptions and services, allowing it to acquisition accrued quarterly revenue. The company’s fourth-quarter nett gross successful 2022 was $605 million. Though that fig is down importantly from $2.49 cardinal successful Q4 2021, it is up 5% from $576 cardinal successful the 3rd quarter.

The firm’s nett nonaccomplishment per stock was $2.46 for the 4th fourth of 2022 and $11.81 for the full twelvemonth of 2022.

Other information points of interest

Coinbase noted that its operating expenses were $1.2 cardinal and up 3% quarter-over-quarter, arsenic it expected. The institution said that, during 2022’s marketplace crises, it “became wide that [Coinbase] had hired excessively galore radical excessively quickly.” It alluded to 2 layoffs successful mid-2022 and early 2023 and said these and different efforts should trim expenses by implicit 30%.

The institution said that it ended the 4th fourth of 2022 with $5.5 cardinal of U.S. dollar resources, a diminution of 3% oregon $148 cardinal from the erstwhile quarter.

Coinbase closed the shareholder missive by asserting that it believes it is successful a beardown presumption to execute good adjacent arsenic regularisation affects the crypto industry. It noted its past engagements and settlements with the New York Department of Financial Service (NYDFS) and the U.S. Securities and Exchange Commission (SEC).

It besides noted that aboriginal 2023 has seen an betterment successful the crypto market, with a full marketplace capitalization up 40% twelvemonth to date. The steadfast saw $120 cardinal of transaction gross successful January 2023 but warned investors “not to extrapolate these results forward.”

Coinbase is 1 of the largest cryptocurrency exchanges. It saw $1.7 cardinal of trading measurement today. Its banal (COIN) is valued astatine $62.07, down 4.8% today.

The station Coinbase saw 66% diminution successful transaction gross successful 2022 but remained “resilient” appeared archetypal connected CryptoSlate.