Coinbase Q4’22 revenue at about a quarter of Q4'21 figures
- Coinbase Q4'22 revenue came in slightly higher than expected.
- Amid the crypto winter, losses and low trading volumes stood out in the earnings report.
Coinbase Global Inc., the second-largest crypto exchange by means of its trading volume, presented a slightly higher-than-expected Q4’22 earnings report. Even so, it recorded significant losses and a decline in trading volumes.
Coinbase Q4’22 financial performance
On the one hand, its revenue amounted to $629 million for the period between October and December 2022. Notably, the figure exceeded the analysts’ forecast of $581 million. Even so, it is still significantly below the $2.5 billion recorded in a similar period in 2021. In fact, it is just about a quarter of the firm’s revenue in Q4’21.
Amid the bankruptcies and overall crypto winter that impacted the industry in 2022, Coinbase had its trading volumes plunge; posting losses of $557 million. Indeed, it was the fourth consecutive quarter of losses.
Besides, it is one of the global tech companies that have had to lay off some of its employees in recent months. In January 2023, it let go of 20% of its workforce. This is after it cut 18% of its employees in June 2022.
According to the firm’s CFO Alexis Haas, the firm does not intend to significantly increase its labor force. In fact, it does not rule out further layoffs as it strives to improve its finances.
Crypto industry’s status quo
Bitcoin price has risen by close to 45% since the beginning of 2023. During the same period, Coinbase stock price has been up by 85%. The increase is attributed to investors’ expectation that the worst is over.
However, even with the optimism regarding the end of the crypto winter, uncertainty continues to shape the broader industry. Concerns that the Federal Reserve may hike interest rates higher for longer is one of the bearish factors. Furthermore, recession woes continue to impact the sector.