Coinbase’s fourth-quarter revenue for 2022 beat expectations, but year-over-year total revenue is still down 57% year over year.
Financial statements for the fourth quarter of 2022 showed that the revenue of the largest US cryptocurrency exchange Coinbase reached $ 604.9 million, beating observers’ forecast of $ 589 million.
Even so, the exchange’s revenue for the whole year 2022 is still down 57% compared to 2021, dropping from $7.3 billion to $3.1 billion.
Coinbase’s report also showed that the exchange’s after-tax profit reached negative $ 124 million in the fourth quarter, as expected. In 2022, Coinbase saw a loss of $371 million, down from $4 billion in profits in 2021.
Another parameter worth noting is the on-chain staking yield, which the exchange recorded at $62.4 million, slightly below the estimate of $63 million. In addition, Coinbase’s total staking revenue increased to $275.5 million from $223 million in 2021.
In terms of operating expenses, Coinbase said expenses last quarter were $1.2 billion, up 3% from the previous quarter. In 2022, Coinbase’s total costs were $4.5 billion, up from $3.7 billion in 2021, citing more hiring than necessary. The exchange had to conduct a large-scale staff reduction between 2022 and early 2023, this decision will help businesses optimize 30% of the budget for the first quarter of 2023.
In addition, the report revealed that the US-based exchange holds $4.425 billion in cash and cash equivalents.
Responding to the media, Coinbase Vice President of Investor Relations Anil Gupta said that the reason for the drop in revenue this year is because of the drop in trading volume on the exchange, most investors have chosen to “step back and HODL-ing” during a volatile period in the past year.
Despite a turbulent year, Coinbase said it remains optimistic about the market’s resilience. The US exchange also said that it is preparing a series of development plans in 2023, starting with capitalization stabilization from losses in 2022.
Shares of Coinbase fell 4.8% in trading on Feb. 21 because of poor financial results, according to TradingView.