Crypto exchange Coinbase posts Q1 earnings surge
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The news: Coinbase more than doubled its revenue during the first quarter as a resurgence in cryptocurrency prices boosted business for the largest US crypto exchange.
The numbers: Revenue grew 116% to $1.58 billion ($2.4 billion) year on year, and up 72% quarter on quarter. Net income totalled USD1.17 billion for the quarter, compared to a loss of USD79 million in the prior corresponding period.
Adjusted EBITDA for the quarter was USD1 billion, a 253% climb year on year, and more than the entire of the previous financial year.
Coinbase said it generated over USD300 million in transaction revenue in April alone, but said it continues “to urge caution in extrapolating these results.” It also expects around USD525 million to USD600 million in subscription and services revenue in the second quarter.
The company's shares dropped more than 2% to USD223.3 in after hours trading on the Nasdaq after closing 8.93% higher during Thursday's session.
The context: Coinbase was buoyed by Bitcoin soaring to record highs in March, while the second-biggest digital asset Ethereum underwent its first major upgrade in over a year.
The crypto industry also saw an influx of institutional investors since the Securities and Exchange Commission (SEC) approved eleven US spot bitcoin exchange-traded funds (ETFs), many of which have partnered with Coinbase as their custody partner.
Meanwhile, Coinbase faces an ongoing legal battle with the SEC, after a judge ruled in March that the US regulator's claim that the crypto exchange engaged in unregistered sales of securities could be heard by a jury at trial.
The source: Coinbase earnings release
