- Adjusted loss per share was $0.34, well below our forecast
- The company improved performance due to cost optimization
- In January alone, the exchange laid off about 950 people.
Yesterday, May 4, Coinbase investors received a financial report exchanges for the first quarter of 2023. The company posted a 22% increase in revenue to $736 million, well ahead of the forecast.
The exchange’s adjusted earnings before taxes and depreciation amounted to $284 million. The company’s total assets exceeded $5.3 billion.
Overall, according to the report, Coinbase’s economic performance has improved significantly. Adjusted loss per share was $0.34, compared to a $1.45 expected loss. At the same time, in Q4 2022 it was equal to $2.45.
The company managed to achieve this by rigorously optimizing costs. In January alone, the exchange laid off about 950 people and closed its office in Japan.
The restructuring strategy cost the firm $144 million but paid off. This is how Coinbase CEO Brian Armstrong commented on the report:
“This is the fourth crypto cycle our company has gone through. And after each of them we became stronger. We have changed the business to operate more efficiently during the downturn, which is reflected in our adjusted earnings.”
One of the company’s major achievements this quarter was its entry into the Bermuda market. Investors expect the offshore presence to have a positive impact on the firm’s earnings, as well as broaden its audience reach.