Coinbase Crushes Q1 Earnings Estimates, Shares Soar 7.9%!
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Coinbase Crushes Q1 Earnings Estimates, Shares Soar 7.9%!

written by John Murphy | May 5, 2023

According to recent news, Brain Armstrong, CEO of Coinbase, said the Coinbase Q1 Earnings Estimates is a turning point for the company. Coinbase is working toward being more disciplined economically.

From quarter 4 of 2022, the interest income transaction revenue increased to $240.8 million. While blockchain rewards transaction revenue increased to $73.7 million respectively. For this quarter, results in increased revenues.

Key Takeaways:

  • According to the CEO of Coinbase, quarter 1 is a turning point for the firm as it is working to become more disciplined economically.
  • The revenue of retail investors and institutional-based transactions increased by 14.1% and 66% to $352.1 million and $22.3 million, respectively.
  • Over the quarter, the revenue percentages of Ether and bitcoins remain the same.
  • The crypto exchange, Coinbase is getting closer to being profitable after the turbulent 2022.
  • To maintain the proper operational efficiency level in the company, the firm reduced staff by 20% in January and 18% in June.

In the first quarter of 2023, CoinBase, a crypto exchange, notably diminished its net loss. The sturdy earnings from the trading activity of the retail investor result in this loss reduction. In quarter four of 2022, the net loss of the company is $557.

Coinbase Q1 Earnings Estimates

This loss falls to $79 million in quarter one of 2023. Moreover, this loss caused a relatively 22% increase in revenue worth $736 million. In after-hours trading, this result leads to a spike of 7% in the share price of Coinbase to beat expectations from analysts.

Coinbase Q1 Earnings Estimates

As stated in the 4 May Shareholder letter of Coinbase., its institutional-based transaction revenue massively rose by 66% to more than $22.3 million. As transaction revenue is the fees that it charges for trading. At the same time, retail investor’s transactions revenue rose by 14.1% to $352.1 million.

Generally, the quarter-on-quarter transaction profit rises by 16% to $ 375 million. Nevertheless, the volume of trading remains flat.

Furthermore, the Ether and Bitcoins trade revenue percentages over the quarter remained the same.

The company is getting closer to being profitable after the turbulent 2022. The firm witnessed a net loss of $1.16 billion in the first quarter, $803 million in the second quarter, $576 million in the third quarter, and $605 million in the last quarter of 2022.

By supporting the above statement, Coinbase stated that we continued the clarity of regulations and drove the innovation of products. Additionally, regarding risk management and operational excellence, we lower double costs.

Our efforts result in a significant improvement. Furthermore, he said that our teams are smaller but quick, and we are happy with the results and the innovation pace we are witnessing.

Armstrong stated that to maintain the proper operational efficiency level in the company, it reduced the staff by 20% in January and 18% in June.  

The US Securities Exchange Commission notice that is floating over the head of Coinbase is the reason behind this Coinbase comment.

According to the company, the hope of playing a role in promoting the market with regulations and supporting bipartisan for the proposed crypto laws encouraged the company.

Reaction of Crypto Influencers & Platforms to Coinbase Q1 Earnings Estimates

Crypto Trader Pro took to Twitter and announced that, As quarter 1 is beating expectations, there is a 7.9% spike in the share price of the crypto exchange Coinbase.

Gary Cardone took to Twitter and announced good news for the digital industry. We need to flourish strong companies like Coinbase, so vote for it using your wallet.

VirtualCoinCap took to Twitter and announced that, according to the CEO of Coinbase, Brian Armstrong, quarter 1 is a turning point for the firm. As it is working to become more disciplined economically.

Do you Know?

  • Coinbase’s revenue in Q1 2021 was a staggering $1.8 billion, which is more than the company made in the entire year of 2020.
  • The company’s net income for Q1 was estimated to be between $730 million to $800 million, which is more than its total revenue for the entire year of 2020.
  • Coinbase’s trading volume in Q1 reached $335 billion, which is almost equivalent to the company’s entire trading volume for the year 2020.
  • The price of Bitcoin, which is the most popular cryptocurrency, surged more than 100% in Q1, leading to increased demand for Coinbase’s services.
  • As a result of its Q1 earnings, Coinbase’s market capitalization surpassed $100 billion, making it one of the most valuable companies in the United States.

Crux:

In recent news, the CEO of Coinbase, Brain Armstrong, made a statement. He said quarter 1 is a turning point for the company as it works to be more economically disciplined. In the first quarter of 2023, the Coinbase Crypto exchange managed to diminish the net loss by the sturdy earnings from the retail investors trading.