Coinbase Q1'23 Earnings: More Than a Survival Story

All Eyes On the Most Important Company in Web3

GM DOers!

The crypto giant Coinbase is on the stage with some staggering stats to flaunt. 🚀

Prepare to be amazed, and proud… Because the most important company in web3 is carrying the industry on its sturdy shoulders.

Unfortunately, we can’t look onchain to get Coinbase’s earnings results, instead, we’ll have to review the old-fashioned way (for now).

💸 A towering $145B in quarterly volume traded.

🌐 A cool $130B in assets on the platform.

🌍 Operations spanning across 100+ countries worldwide.

💪 A strong and diversified team of 3500+ employees.

These aren't just numbers; they're a testament to the powerhouse that is Coinbase. 🏇

As we dive deeper, you'll see just how robust this crypto giant truly is and why that’s important for YOU and the wider industry. Let’s go!

Crunching the Q1 Numbers

In the world of business, numbers speak louder than words. 🗣

And boy, do Coinbase's Q1'23 numbers have a story to tell!

We'll dissect this crypto behemoth's earnings, not just to marvel at the figures, but to understand what they mean for the web3 space as a whole.

After all, Coinbase's success is like a weather vane for the direction of our entire industry. 💡

Now, let's unravel the numbers one by one:

💰 $736M in net revenue, up 22% Q/Q. That's not just growth; that's a rocket ship taking off! 🚀

🔽 24% decrease Q/Q in total operating expenses. Remember the January layoffs? Sad as they were, it seems they paid off in terms of leaner operations.

💼 $284M in adjusted EBITDA. If you're scratching your head, EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

It's a measure of a company's overall financial performance and is often used as an alternative to simple earnings or net income in some circumstances.

TL;DR: It's looking healthy! 🌳

🔄 $362M in subscription and services revenue, up 28% Q/Q. Yes, folks, Coinbase is not just about transaction fees. They've diversified, and it's paying dividends.

📈 $375M in total transaction revenue, up 16% Q/Q. While trading volume is important, it's the revenue that fills the coffers, and Coinbase is filling them up nicely!

💎 $130B in Assets on the platform, up 62% 🤯 Q/Q. Clearly, users aren't just trading; they're storing their assets with Coinbase. Trust much?

💪 $5.3B in USD resources. That's the kind of cash reserve that could weather any storm.

With these numbers, it's evident Coinbase is not just surviving; it's thriving. 🤩

But that’s not highlighted in the stock price 📉

Despite being up 70% YTD, $COIN is still down 83% from when it started to trade.

At Web3 Academy, we’re here to help you build and invest. Let’s talk investing for a second.

Now, we're not saying you should re-mortgage your house or take a loan from Blend to buy Coinbase stocks, but let's just say it wouldn't be the worst idea to pay more attention to it.

Just to be crystal clear: this is NOT financial advice! We're just pointing out that the chicken seems to be laying some pretty golden eggs right now. 🐔💰

Question: Do you own $COIN at the moment? Reply with Yes/No to this question! If you’re feeling chatty, also let us know if you use the Coinbase App and why/why not?

In the next section, we'll delve into what this success means for you, and the broader web3 community. So stick around 👇

The Big Picture: Coinbase's Impact 🌍

Why should you, as an investor, builder or early tech adopter, care about these numbers? 🤷

The answer is simple and profound: Coinbase's success is a proxy for the entire industry.

When Coinbase thrives, it underscores that web3 is more than just a trend - it's a sustainable, profitable industry that's here to stay. 🚀

And Coinbase isn't just about profits and market dominance - it has a noble cause.

The company aims to bring crypto to emerging countries struggling with their banking systems. 🌐

Think of nations like South Africa, where 1 in 4 people are unbanked:

Or Argentina, grappling with 3-digit inflation: 

Or Lebanon, seeing their food prices triple every year:

These are places where people need crypto, and Coinbase is stepping up to meet that need. 

It's not just about providing a service; it's about facilitating mass adoption, one small country at a time. 🌱

Wrapping Up: Time to Update the System!

Coinbase isn't just a crypto exchange or the pack leader in earnings; it's also at the forefront of the fight for regulatory clarity. 🥊

This giant is tangling with the likes of the SEC and advocating for clear crypto regulations.

An example of their initiative is the "Crypto 435" campaign, a grassroots movement aimed at educating policymakers about the benefits of digital assets.

To commemorate this fight, Coinbase has launched the "Stand With Crypto" NFT. It's not just a digital token; it's a symbol of the broader movement for crypto acceptance and a more inclusive financial system. 🏳

Because that’s what this is all about: 'It’s time to update the system.' 🔄

At Web3 Academy, we’ve minted the #102946 NFT. Have you? 🤨

If not, head here to mint yours and share it with us on Twitter.

P.S.- It’ll only cost you around $10 and all of the money is donated to vetted organizations through a Crypto Advocacy Round with Gitcoin.

That’s it for today, frens. I hope you’ve enjoyed this Coinbase Q1 Earnings breakdown. If so, make sure to let us know by liking this post. 💜

Still, you might be wondering - how does all this tie into your journey as an investor or a builder in web3? 🧐

In this next section, Kyle breaks down advice for builders and investors.

This is a new segment in all of our free newsletters.

However this advice is only available to PRO members so let's delve right in… Enjoy! 👇

PRO Advice For Builders and Investors

For Investors 📈

The Coinbase stock ($COIN) is basically a proxy for crypto and web3. 🌐

I mentioned last week how $ETH is like an ETF in the entire space, well you can loosely think of Coinbase as this too.

It’s a bit different as it has employees, expenses, and revenues, and has to deal with regulators, but you’ll notice it moves along with crypto markets.

But $COIN is widely misunderstood by tradfi investors, which is why the stock has taken an absolute beating since its IPO. Not to mention, regulatory concerns tend to make the stock tank. 📉

Coinbase is more than just a US exchange though. First, I think they will move globally, but more so I think they are making a move to become the “Apple” of web3.

They are building the UX to facilitate the masses. They have everything from the onramp to the wallet and NFT marketplace, to the wallet-as-service, to an L2 and even an e-commerce product and a payroll product for companies.

Coinbase understands crypto and web3 and they are building the features that enable the world to use it, seamlessly. 👌

I’m confident $ETH will outperform $COIN, however, I can buy and hold $COIN in my TFSA and RRSP (aka Tax-free savings accounts in Canada, every country has their own version of these). This allows me to make crypto-like gains and sell them without worrying about taxes. 💸

Disclaimer: I managed to buy some $COIN at almost its peak low (around $37), but I continue to buy at these prices (<$60).

For Builders 🛠

Watch everything that Coinbase does. 👀

There is no company with more experience and understanding of crypto and web3 than Coinbase.

These guys get it.

Watch the marketing campaigns they launch, they are brilliant.

Watch where they build, what they build and how they launch it. They are ahead of everyone else and make incredibly smart moves.

If they launch an L2, it’s because they know L2s are the future.

If they launch wallets-as-a-service, it’s because companies around the world are wanting to build in web3 and they need an easier way to integrate wallets into their apps. 💡

Sure they make mistakes too (... the Coinbase NFT Marketplace). But they weren’t wrong about marketplaces… they just couldn’t launch a token to compete with the rest of em.

Either way, Coinbase is the most important company in web3 right now and we need to support everything they do (and also continue to learn from them)! 💪

Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.

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