Today after the bell, Coinbase reported its financial results for the first quarter of 2023 and far exceeded expectations. In the first three months of the year, the US cryptocurrency exchange generated net sales of $736 million, net loss of $79 million and adjusted EBITDA of $284 million.
Analysts had expected a much smaller revenue of $655 million and a larger loss for the company in the first quarter. In after-hours trading, shares of Coinbase are up just over 7%.
To be sure, Coinbase’s results are a welcome data set for both crypto bulls and investors in the business.
Let’s see how Coinbase beats analyst estimates and what it forecasts for the coming quarter. Can the company sustain its return to adjusted profitability? What does it say about Q2 crypto trading activity?
Coinbase’s Q1 2023 Results, Explained
Comparing Coinbase’s Q1 2023 results to year-ago totals, we see an odd set of numbers. Yes, Coinbase’s Q1 2022 revenue was much larger ($1.17 billion) than what it posted in the most recent quarter. In contrast, the company’s net loss in the prior year period was much larger ($430 million) and adjusted EBITDA was much smaller ($20 million).