Coinbase generates 22% more revenue over Q4 2022
Coinbase shares saw a significant increment in price, after Coinbase’s Q1 2023 earning report.
Coinbase is a US-based Nasdaq-listed public crypto company. This crypto company reported a revenue downfall -74.82% since last year in the same period to $629.11Mn in Q4 2022. In late March of this year, Coinbase received a Wells notice from the United States Securities and Exchange Commission (SEC) over a potential violation of securities law. The majority of the analysts claimed that Coinbase will report a significant downfall in its revenue for Q1 2023.
On 4 May 2023, The Coinbase shareholder letter reported the company’s net loss fell from $557 million in Q4 2022 to $79 million in Q1, partly attributed to a 22% increase in revenue to $736 million.
This revenue report acted as a catalyst to Coinbase’s share price & pumped more than 7.5% within hours.
The current COIN share price is $49.22.
In Q1 2023, Coinbase generated $22.3 million from institutional crypto Investors & $352.1 million from retailer Investors via transaction revenue, the fees Coinbase charges for trades from customers.
In 2022, Coinbase faced a $1.16 billion net loss because of the winter phase in the crypto sector. This year, the result from the first quarter helped the Coinbase firm to show confidence. According to Coinbase the first quarter of this year is a turning point.
Coinbase stated that the team focused on reducing costs & bringing efficient services.
“We reduced costs, doubled down on operational excellence and risk management, and continue to drive product innovation and regulatory clarity. Our efforts are showing meaningful progress.”
In June 2022, Coinbase reduced its workforce by 18% & later in January this reduced its workforce by 20%. Coinbase admitted that its team is now small but claimed that it is more nimble than ever.
Just a day ago, investment bank Citi downgraded Coinbase (COIN) stocks to neutral/high risk citing unclear regulatory policies under the jurisdiction of the US & recent Wells notice, Coinbase received from the SEC agency.
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