- In its recent fourth-quarter 2022 earnings report, it reported fourth-quarter net income of $605 million, beating analyst estimates of $588 million.
- Despite reporting earnings above estimates, Coinbase’s trading volume fell to $830 billion in 2022 compared to 2021.
- For its part, the shares of the consortium have shown significant growth so far of 78 percent, however, even that has not prevented them from falling by 67 percent in the last 12 months.
2022 was a chaotic year for the crypto ecosystem. The crypto winter was added to the closure or bankruptcy of some companies and a significant number of layoffs in the sector, however, it is not all bad news, since, despite the catastrophe, small signs of crypto life can be found.
A clear example of them is the digital asset exchange house coinbasealso considered as the second largest exchange by trading volume since the company recently released its fourth quarter 2022 earnings, which allowed both its shareholders and market players to have a much broader and more current perspective of its finances.
Coinbase reports increased revenue
the consortium reported net income in the fourth quarter of $605 million dollarsthus placing itself above analyst estimates of $588 million dollars according to FactSet, plus 5 percent more than the $590 million raised in the third quarter.
Despite having placed above the estimated profits, andCoinbase trading volume took a serious dip, dipping to $145 billion from $547 billion a year ago. Making a count of the last few years, the volume of operations in 2020 was $193 billion dollars, in 2021 it rose to $1.67 billion dollars, and finally in 2022, Coinbase presented a drop to $830 billion dollars.
For their part, the Company shares posted growth of approximately $0.9 percent to $62.60. in trading after yesterday’s close. For the fourth quarter, the stock posted an adjusted loss of $2.46 per share for the quarter, beating estimates of a loss of $2.52 per share, according to FactSet.
Along with the growth of the prices of the so-called “digital gold”, the shares of the consortium showed significant growth in 2023 until the time of 78 percent, however, even that has not prevented them from falling by 67 percent in the last 12 months.
Likewise, its volume of transactions fell a 12 percent quarter-over-quarter to $322 million from the prior quarter, falling below the consensus of $327 million among analysts surveyed by StreetAccount, due to lower overall trade volume.
Although the report may seem disappointing on several points, it still includes some good news. One of them is that Although the cryptocurrency exchange’s trading revenue was nothing short of impressive, Coinbase’s other revenue posted significant gains.
Thus, what the consortium points out as “subscription and service revenue” presented $210.5 million dollars in the third quarter of 2022 to $282.8 million dollars in the fourth quarter of the same yearwhich can be translated as a gain of just over 34 percent in a single quarter.
Similarly, subscriptions and services represented almost 50 percent of total revenues in the fourth quarter, mainly due to interest income, which managed to rise to $162.2 million dollars.
Likewise, despite the fact that the crypto market had to face the crypto winter and a series of catastrophic events, of which the collapses of Terra/LUNA and FTX stand out, this was not an impediment for them to appear, like a flower in the middle of the winter, growths in other areas.
Monthly active developers in crypto have managed to reach over 20,000 while some big name companies like Nike, Starbucks and Adidas have not been so lucky and have fallen along with some social media platforms like Reddit. and Instagram.
Despite all of the foregoing, Coinbase has been able to continually improve its services, as well as expanding its digital asset offering to attract a growing user base.
It should be said that, despite the red numbers, Coinbase’s financial report has been well received by the crypto community and by investors, this is because the firm managed to exceed analysts’ expectations, in addition to demonstrating its ability to adapt. and grow in a constantly evolving market.
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