Coinbase issued its year-end shareholder letter today. February 21stI explained our financial position for the last quarter and for the full year 2022.

Coinbase Releases Earnings, Shareholder Data

Coinbase says total trading volume in 2022 is down 50% year-over-year. Also, transaction revenue in 2022 fell by 66% on the same metric.

Nonetheless, the company said it was “resilient despite major shocks to the system.” Coinbase attributes the poor performance to his two high-profile collapses of Luna and Terra in May 2022 and his FTX in November 2022.

The company’s full-year net revenue (not just transactional revenue) fell from $7.4 billion in 2021 to $3.1 billion in 2022.

Coinbase also noted that it has diversified its revenue into subscriptions and services, allowing it to experience quarterly revenue growth. The company’s fourth-quarter 2022 net revenue for him was $605 million. This number is down significantly from $2.49 billion in Q4 2021, but up 5% from $576 million in Q3 2021.

The company’s net loss per share was $2.46 in the fourth quarter of 2022 and $11.81 for the full 2022.

Other interesting data points

As expected, Coinbase noted operating expenses of $1.2 billion, up 3% quarter-on-quarter. The company said during the 2022 market crisis that “ [Coinbase] Hired too many people too quickly. Mid-2022 and early 2023, he hinted at two rounds of job cuts, and said the latest layoffs and other initiatives should cut his expenses this quarter by more than 30%. .

The company said it ended the fourth quarter of 2022 with $5.5 billion in resources, down 3% or $148 million from the previous quarter.

Coinbase concluded its letter to shareholders by arguing that it believes it is in a strong position to work well even as regulation affects the cryptocurrency industry. Referenced past agreements and settlements with the New York Department of Financial Services (NYDFS) and the U.S. Securities and Exchange Commission (SEC).

He also noted that the cryptocurrency market improved in early 2023, with market capitalization increasing by 40% year-to-date. The company said he saw $120 million in trading revenue in January 2023, but warned investors “do not extrapolate these results.”

Coinbase is one of the largest cryptocurrency exchanges. Today’s trading volume was $1.7 billion.Its shares (COIN) are valued at $62.07fell 4.8% today.

By Jules

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