Coinbase Q1 Report
- Coinbase reported 22% revenue growth with a net loss of $79 million in the first quarter.
- Operating expenses decreased by 24%, following the downsizing of 950 employees.
- The trading volume was reported to be $145 billion, with consumer transaction revenue up 14% and institutional transaction revenue up 67%.
Revenue Growth and Operating Expenses
Coinbase said May 4 that its net revenue increased by 22% quarter over quarter to $736 million and its operating expenses fell by 24% from the previous quarter. The reduction in operating expenses is related to the fact that the company laid off 950 employees in January. Though the restructuring strategy cost it $144 million, Coinbase said that it is now a “more efficient” company that can “do more for less.”
The firm said that these trends resulted in a net loss of $79 million but generated $284 million in adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA). Coinbase added that its balance sheet holds $5.3 billion in U.S. dollar resources, including cash, cash equivalents, USDC, and custodial account overfunding.