Coinbase Q1 2023 Earnings Report
Key Takeaways
Coinbase's Q1 2023 showed significant improvement with net revenue growing 22% Q/Q to $736 million and operating expenses declining 24% Q/Q. The company achieved a net loss of $79 million, which included a $144 million restructuring expense, but returned to positive Adjusted EBITDA of $284 million.
Net revenue increased by 22% Q/Q to $736 million.
Total operating expenses decreased by 24% Q/Q.
The company reported a net loss of $79 million, which included a $144 million restructuring expense.
Adjusted EBITDA was positive at $284 million.
Coinbase
Coinbase
Forward Guidance
Coinbase anticipates lower subscription and services revenue Q/Q due to lower USDC market capitalization, and expects expenses to modestly increase due to higher legal, rent, and sales & marketing expenses in Q2.
Positive Outlook
- Maintain goal to improve full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022.
Challenges Ahead
- Expect lower subscription and services revenue Q/Q driven by lower USDC market capitalization.
- Average USDC market cap in April was $31.7 billion, 23% lower than the Q1 average of $41.3 billion.
- Anticipate a sequential increase in General and Administrative expense driven by higher legal expenses and higher rent expense due to lease termination.
- Anticipate higher Sales and Marketing expenses in Q2 as a result of seasonal spending associated with NBA partnership.
- The crypto industry continues to be volatile, as evidenced most recently by the disruptions in the banking sector and ongoing regulatory uncertainty.