Summary
Coinbase's third quarter of 2022 was marked by significant macroeconomic and crypto market headwinds, leading to a substantial decrease in transaction revenue. Total revenue for the quarter was $590.3 million, down 55% year-over-year, primarily driven by a 66% decline in transaction revenue, reflecting lower trading volumes and crypto asset prices. Despite the challenging trading environment, Coinbase demonstrated resilience through strong growth in its subscription and services revenue, which increased by 45% year-over-year to $210.5 million. This growth was bolstered by increased interest income from customer custodial funds due to higher interest rates and Coinbase's participation in the USDC ecosystem. The company reported a net loss of $544.6 million for the quarter, a reversal from the net income of $406.1 million in the prior year's quarter, largely due to a significant increase in technology and development expenses, general and administrative costs, and other operating expenses, alongside the decline in transaction revenue. Adjusted EBITDA also swung to a loss of $115.9 million from a positive $618.2 million in Q3 2021, reflecting the challenging market conditions.
Financial Highlights
48 data points| Revenue | $590.34M |
| R&D Expenses | $556.34M |
| Operating Expenses | $1.15B |
| Operating Income | -$556.48M |
| Interest Expense | $21.51M |
| Net Income | -$544.63M |
| EPS (Basic) | $-2.43 |
| EPS (Diluted) | $-2.43 |
| Shares Outstanding (Basic) | 223.92M |
| Shares Outstanding (Diluted) | 223.92M |
Key Highlights
- 1Total revenue declined 55% year-over-year to $590.3 million in Q3 2022, primarily due to a 66% decrease in transaction revenue.
- 2Subscription and services revenue grew 45% year-over-year to $210.5 million, driven by higher interest income and growth in other services.
- 3The company reported a net loss of $544.6 million, a significant shift from the net income of $406.1 million in Q3 2021.
- 4Technology and development expenses increased by 56% year-over-year to $556.3 million, reflecting continued investment in products and platform.
- 5General and administrative expenses increased by 40% year-over-year to $339.2 million, driven by customer support and personnel-related costs.
- 6Verified Users grew 48% year-over-year to 108 million, indicating continued user acquisition.
- 7Monthly Transacting Users (MTUs) saw a modest increase of 16% year-over-year to 8.5 million (average for the quarter), but trading volume declined significantly, down 51% year-over-year.