Coinbase Global Inc (NASDAQ:COIN) described the second three months of its financial year as a ‘strong quarter of execution’ as it reported positive earnings (adjusted EBDITA), with improved financials largely driven by cost savings through staff layoffs.
The crypto exchange operator reported US$194 million of positive earnings, versus a US$151 million loss in the same period last year, revenue meanwhile came in at US$663 million down from US$803 million in 2022.
Net losses narrowed significantly to US$97 million, versus US$1.09 billion a year ago.
Coinbase said it retained its financial goal for 2023, to improve full-year earnings (adj EBITDA) “in absolute dollar terms versus full year 2022.”
Volatility in the stock price ensued as investors digested the 23-page letter to shareholders, which enclosed Coinbase's financial results.
COIN stock quickly marked a gain of over 3% in initial afterhours trade, before enthusiasm dissipated, leaving the shares US$1.75, or 1.9% lower, changing hands for less than US$90.00 each.
“Q2 was a strong quarter of execution for Coinbase and marked continued progress in our journey to build a company that is increasingly efficient and financially disciplined,” the crypto exchange said in a statement.
“One year ago in Q2 2022, we started reducing our expense base to operate more efficiently. One year later, we're proud to say that our quarterly recurring operating expenses have dropped nearly 50% year-on-year.”
It noted that a 30% cut in headcount had “paved the way for a more efficient environment where teams are exhibiting stronger execution, and yielding results.”
“In Q2, we again generated positive Adjusted EBITDA and increased our $USD Resources for the first time since late 2021, all while continuing to grow our product suite.”