Coinbase delivers strong first quarter earnings after cost cuts

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Coinbase earnings beat estimates, interest income from USDC nears $200 million

Interest income rose to $240 million, of which $199 million was derived from USDC.Stay updated on Pro Crypto Ecosystems news by locking ACS tokens with The Block.No wallet? No problem. You can set one up for free. We recommend Torus for first-time users.Coinbase reported first-quarter revenue up 22% as cost-cutting measures paid dividends. Shares popped 7% in after-hours trading.

Interest income rose 32% to $240 million, above estimates of $205 million, of which $199 million was derived from USDC. In the fourth quarter, interest income totaled $182 million, of which $146 million was USDC. The cryptocurrency exchange said revenue for the first quarter was $736 million, coming in above the $658 million estimate of analysts surveyed by FactSet. EBITDA was positive $284 million, better than the negative $36 million estimated.

Subscription and services helped drive this growth, said the firm's vice president of investor relations, Anil Gupta, in an interview with The Block following the release. Subscription and services revenue, which included staking and interest income, was $362 million, above estimates of $316 million.may have a more outsized impact on Coinbase's revenue as the year progresses, Mizuho's Ryan Coyne told The Block ahead of time.

Staking accounted for $73.7 million, above the $71 million estimated by FactSet. It did, however, lead to an increase in transaction expenses as rewards are paid out to users, the firm noted. Staking was under the microscope during the first quarter. Kraken reached a $30 million

 

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Coinbase's trading volumes dwindle ahead of earnings, retail volume could have 'bottomed out'Coinbase will share its first-quarter results on Thursday after a quarter dominated by regulatory oversight.
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