Coinbase Smashes Earnings Expectations in Q1 Amid Regulatory Pressure
Coinbase Smashes Earnings Expectations in Q1 Amid Regulatory Pressure
Coinbase shares its expectation-beating financial performance for Q1 2023 during its May 5 earnings call.
The biggest cryptocurrency exchange clinched $736 million in revenue for the first three months of the year. The result is higher than analyst consensus of $655 million for the quarter.
Moreover, adjusted EBITDA came at $284 million, resulting in a significantly narrower net loss of $79 million in Q1 from $557 million in Q4 2022, CoinTelegraph updates.
The company witnessed a 66% increase from its transaction revenue, measuring the fees charged for trades, which totalled to $22.3 million during the financial period.
There has been a noticeable spike in investor attention towards crypto as a good number of stable financial institutions consequently faced liquidations in March. The event sent the US banking sector to its lowest point since the global financial crisis in 2008.
Among Coinbase’s biggest milestones in Q1 is the revival in interest income and blockchain rewards. Revenue from these business segments respectively hit $240.8 million and $73.7 million.
Coinbase has also maintained the upward trajectory of its subscription and services revenue which came at $361.7 million. It maintained investors' trust despite its ongoing regulatory battle with the US Securities and Exchange Commission.
According to a recent report from CoinDesk, the court has ordered the regulatory body to respond to Coinbase’s allegations within 10 days from May 3.
In the previous week, the American crypto exchange released a bold statement against the US SEC, accusing it of ‘providing insufficient regulatory guidance’ for US companies operating in the crypto sector.
According to the details of the filing, Coinbase is seeking regulatory clarity from the US SEC’s side about how existing laws on traditional assets might apply to digital assets.
Coinbase’s stock price under the ticker COIN in the Nasdaq jumped 9.10% after its impressive financial update.
The stock prepares to open Friday’s session at $53.70 apiece after closing at $49.22 in the previous session.
