Coinbase Earnings Report

They might be positioned to benefit from the increased adoption of blockchain.

👤 The Sarcastic InvestorCommunity Lead :) 
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   Feb 22, 2023

Coinbase reported a net loss of $2.62 billion in 2022. At the same time, they have grown in many areas and shifted their focus to a more SaaS-like approach. The results are mixed, and it will be interesting to see what happens in the next few trading sessions.

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Some business highlights:

  • Revenue has been diversifying and driven by Subscription and Services Revenue.
  • cut expenses and trimmed headcount to get better positioning.
  • anticipate further headcount reduction in 2023.
  • anticipate more regulations and thinks coin is positioned to benefit.
  • expect Subscription and Services Revenue to be in the range of 300-325m next quarter. that would translate to a 312.5/282.8 midpoint growth of 10% qoq.
  • they have a lot of cash and is cognizant of the risks they're facing.

They pay a lot of stock based compensation that's about 68% of their total revenue this quarter. Reducing headcount would also bring down the expense in this part so maybe in a few quarters we can see the company turn into profitability. It's not impossible.


get stock ideas Source: https://s27.q4cdn.com/397450999/files/doc_financials/2022/q4/Shareholder-Letter-Q4-2022.pdf

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 - Coinbase, Inc
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Hi, I'm Shih-Min. I am a software engineer that deals with highly-scalable, distributed and fault-tolerant systems.