Coinbase’s fourth quarter 2022 net loss was $557 million or $2.46 per share, better than market expectations ($2.52). In the post-trading session, securities showed high volatility.
Our Q4 and FY’22 financial results are in.
Our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
Net revenue amounted to $604.9 million. The growth of the indicator compared to July-September by 5% became possible thanks to a 34% increase in revenues combined in the category of subscriptions and services.
In the latter, about 22% of revenues came from the service staking ($62.4 million). The company generated $275.5 million in revenue from this last year.
The volume of trading commissions for the fourth quarter showed a decrease of 12% – from $365.9 million to $322.1 million. In 2022, the metric fell 2.9 times, to $2.36 billion.
At a conference with analysts, the exchange’s VP of Investor Relations, Anil Gupta, attributed the deterioration to the “hodling” of retail investors and reduced volatility.
At the end of December, the value of digital assets on the platform amounted to $80 billion ($101 billion a quarter earlier).
In a shareholder note, Coinbase announced the fulfillment of its adjusted 2022 guidance across all metrics, including annual average monthly active users (8.8 million).
The company urged not to extrapolate the $120 million received in January from trading commissions to February-March due to the unpredictability of the market.
Top management expects an increase in revenue, combined in the category of subscriptions and services, from $282.8 million to $300-350 million.
In the personnel policy, Coinbase plans not to significantly increase the staff from the current 3,650 specialists.
Regarding the regulatory regime, the company noted a good position to benefit from the transition period.
Earlier, the CEO of the exchange, Brian Armstrong, said that the staking services of the trading platform cannot be considered as an offer of securities. According to him, the company is ready to defend this claim in court. Warning related to accusations SECpresented to Kraken on February 10.
In January, JPMorgan analysts noted that the Shanghai hard fork and FTX collapse are positive for Coinbase.
Shares of the exchange ended trading on February 21 with a decrease of 4.8%. Since the beginning of the year, the company’s capitalization has jumped by 75.4%, but over the last year’s horizon it has decreased by 67.7%.
In February, Ark Invest bought Coinbase shares for ~$6.7 million and $9.27 million.
In October 2022, the management company bought securities of the exchange for the first time since June. In November, Ark Invest structures spent another $21.4 million for these purposes, in December – $3 million and $5 million.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
