NASDAQ$COIN

Coinbase Global Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Coinbase's Q1 2023 was marked by revenue growth, expense reduction and positive Adjusted EBITDA.

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.

Headline financials

Total Revenue

$773M

Previous: $1.17B-33.8%
EPS (adj)

-$0.34

Previous: -$1.98+82.8%
Capital Expenditures

-$50K

Previous: -$1.2M+95.8%
Free Cash Flow

-$78.9M

Previous: -$431M+81.7%
Net Income

-$78.9M

Previous: -$430M+81.6%
Operating Income

-$124M

Previous: -$554M+77.7%
Gross Profit

$773M

Previous: $1.17B-33.8%
Cash & Equivalents

$5.02B

Previous: $6.12B-18.0%
Total Assets

$139B

Previous: $20.9B+566.7%
Stock-Based Comp

$199M

Previous: $352M-43.5%

Revenue & EPS history

Coinbase · Revenue · Quarterly

$773M

Q1 2023-33.8%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Coinbase · $317M total across 2 segments · Q3 2023

  • Interest and Finance Fee Income
    $243M+138.2%
  • Blockchain Rewards
    $74.5M+18.6%

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.

Tailwinds

  • Maintain goal to improve full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.8%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.3%

Avg return

30 days after

32%

8 / 25 earnings

Positive

+20.1%

Q1 2023

Best reaction

-35.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+4.6%-21.0%
Q4 2025+16.5%+16.3%+38.6%
Q3 2025-2.2%-2.8%-17.0%
Q2 2025-16.7%-19.6%-19.4%
Q1 2025-3.6%+27.6%+21.7%
Q4 2024-8.0%-13.2%-38.6%
Q3 2024-18.4%-15.2%+34.8%
Q2 2024-8.9%-13.5%-18.3%
Q1 2024+6.3%+2.0%+7.5%
Q4 2023+12.4%+8.1%+51.1%
Q3 2023+10.3%+14.5%+71.9%
Q2 2023-3.5%-2.6%-13.8%
Q1 2023+20.1%+24.2%+33.1%
Q4 2022-6.2%-10.4%+1.7%
Q3 2022-3.1%-16.3%-21.5%
Q2 2022-4.0%-7.7%-25.4%
Q1 2022-35.7%-18.7%-23.6%
Q4 2019+6.2%+8.3%+4.0%
Q4 2021+2.4%+13.6%+8.1%
Q3 2020-5.9%-3.4%-28.4%
Q3 2021-7.2%-3.1%-25.4%
Q2 2020-4.9%-4.8%-7.9%
Q2 2021-0.7%-6.9%-8.6%
Q4 2020-6.4%-15.2%-15.5%
Q1 2021-8.9%-15.7%-21.0%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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