Coinbase Global, Inc. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue & Profitability: Net revenue for Q3 2022 was $576 million, a decline from $803 million in Q2 2022. Adjusted EBITDA improved sequentially to a loss of $116 million compared to Q2's loss of $151 million. Net loss also improved to $545 million from $1.1 billion last quarter.
  • Trading Metrics: Trading volume decreased 44% quarter-over-quarter, driven by ongoing macroeconomic headwinds.
  • Monthly Transacting Users (MTUs): Declined 6% quarter-over-quarter to 8.5 million. User activity is shifting from trading to non-trading actions like staking and earning rewards.
  • Subscription & Services Revenue: Revenue in this segment grew 43% sequentially to $211 million. If crypto prices had remained constant with Q2, growth would have been 82%. Growth primarily driven by rising interest income amid a favorable rate environment.
  • Cost Management: Operating expenses fell 38% sequentially (22% excluding impairments), reflecting focused cost containment efforts.
  • Balance Sheet: Coinbase closed the quarter with $5.6 billion in USD liquidity and $483 million in crypto, providing a strong cushion amid ongoing market volatility.

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Operator: Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase Third Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator instructions] Thank you. Anil Gupta, Vice President, Investor Relations, you may begin your conference. Anil Gupta: Good afternoon and welcome to the Coinbase third quarter 2022 earnings call. Joining me on today's call are Brian Armstrong, Co-Founder and CEO; Emilie Choi, President and COO; and Alesia Haas, CFO. I hope you've all had the opportunity to read our shareholder letter, which was published on our Investor Relations website earlier today. Before we get started, I'd like to remind you that during today's call, we may make forward-looking statements. Actual results may vary materially from today's statements. Information concerning risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings. Our discussion today will also include references to certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in our shareholder letter on our IR website. Non-GAAP financial measures should be considered in addition to, not as a substitute for, GAAP measures. We are once again using the Say Technologies platform to enable our shareho

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