Cryptocurrency exchange Coinbase posted a smaller loss in the first quarter, reflecting cost-cutting and diversifying sources of income.
The company took advantage of its agreement with One River Digital Asset Management to grow the product offering in subscription and service revenues, while also launching digital wallets and other products.
“We are also seeing the benefits of increased cost efficiency and have drawn profound lessons from very rapid growth and believe we will be conservative with our spending going forward,” said Alesia Haas, Chief Financial Officer.
Coinbase reported a loss of 34 cents a share, while analysts estimated a loss of 1.35 cents, as investors cautiously returned to speculative assets after a brutal sell-off last year.
Trading volumes more than halved to $145 million, while retail trading volumes, which were key to making Coinbase a household name in 2021, fell by 72%.
Earlier this year, the company said it would cut 950 more jobs in its third round of mass layoffs since last year.
Haas said the improved cost structure will help the company meet its 2023 goal of improving core earnings year-over-year.
The company reduced operating expenses 24% from the recent quarter and reported expenses of $607 million, far below the previous range of $625 million to $675 million.
“Everyone was expecting disastrous results and it doesn’t look like a disaster for Coinbase,” said Dave Weisberger, chief executive officer of CoinRoutes, an algorithmic trading platform for the digital assets sector.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
