Coinbase Earnings Report

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.

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.

$coin

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