today after the bell, Coinbase reported its financial results for the first quarter of 2023, far exceeding expectations. In the first three months of the year, the US cryptocurrency exchange posted net income of $736 million, a net loss of $79 million, and adjusted EBITDA of $284 million.
The analysts had expected much lower revenue of $655 million and a larger loss for the company in the first quarter. In after-hours trading, Coinbase shares were up just over 7%.
Certainly, Coinbase’s results are a welcome data set for both crypto bulls and investors in the company.
Let’s explore how Coinbase beat analyst estimates and what it forecasts for the coming quarter. Will the company be able to maintain its return to adjusted profitability? What does it say about Q2 crypto trading activity?
Coinbase Q1 2023 Results Explained
If we compare Coinbase’s Q1 2023 results to totals from a year ago, we’re presented with a strange set of numbers. Yes, Coinbase’s revenue in the first quarter of 2022 was much higher ($1.17 billion) than what it posted in its most recent quarter. In contrast, however, in the same period last year, the company’s net loss was much higher ($430 million) and its adjusted EBITDA much lower ($20 million).
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