NASDAQ$COIN

Coinbase Global Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Coinbase demonstrated resilience amidst crypto market shocks, diversified revenue streams, and implemented cost-cutting measures.

Coinbase's Q4 2022 results showed resilience with a 5% Q/Q increase in net revenues, driven by subscription and services growth, despite a challenging year for crypto markets. The company focused on cost management, reducing expenses, and engaging with policymakers, positioning itself for potential benefits from future regulations. They ended Q4 with $5.5 billion in total $USD resources and $426 million in crypto assets.

  • Q4 net revenues increased 5% Q/Q, driven by Subscription and Services.
  • Subscription and services revenue grew 34% Q/Q to $283 million.
  • The company anticipates a 30%+ reduction in technology and development, sales and marketing, and general and administrative expenses in Q1’23 compared to Q4’22.
  • Total corporate exposure to client or counterparty insolvencies was $14 million with no customer funds lost.

Headline financials

Total Revenue

$629M

Previous: $2.5B-74.8%
EPS (adj)

-$2.46

Previous: $3.32-174.1%
Capital Expenditures

-$814K

Previous: $1.28M-163.5%
Free Cash Flow

$3.23B

Previous: $2.99B+8.0%
Net Income

-$557M

Previous: $840M-166.3%
Operating Income

-$555M

Previous: $922M-160.2%
Gross Profit

$546M

Previous: $2B-72.7%
Cash & Equivalents

$4.43B

Previous: $7.12B-37.9%
Total Assets

$89.7B

Previous: $21.3B+321.7%
Stock-Based Comp

$431M

Previous: $263M+64.1%

Revenue & EPS history

Coinbase · Revenue · Quarterly

$629M

Q4 2022-74.8%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Coinbase · $62.4M total across 1 segment · Q4 2022

  • Blockchain Rewards
    $62.4M

Forward guidance

Coinbase is focused on cost management, efficiency, and improving full-year Adjusted EBITDA in absolute dollar terms on a year-over-year basis. Crypto remains volatile, and the company is prepared to manage the business through a wide range of transaction revenue scenarios. They are rigorously assessing product-market fit and taking a scrappier approach to investments in new and unproven products.

Tailwinds

  • Focus on cost management and efficiency.
  • Rigorous assessment of product-market fit.
  • Scrappier approach to investments in new products.
  • Nimble and adaptive to market conditions.
  • Improved crypto markets in Q1 compared to Q4.

Headwinds

  • Crypto remains volatile.
  • Limited ability to forecast transaction revenues.
  • Transaction revenues remain correlated with crypto market capitalization and crypto asset volatility.
  • Industry dynamics remain in flux.
  • Caution against extrapolating January 2023 transaction revenue results forward.

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 Q4 2022

Historical avgQ4 2022

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro