Today after the bell, Coinbase reported its Q1 2023 financial results, handily beating expectations. In the first three months of the year, the U.S. cryptocurrency exchange generated net revenues of $736 million, a $79 million net loss and adjusted EBITDA of $284 million.
Analysts had expected a far slimmer $655 million in revenue and a larger loss from the company in the first quarter. In after-hours trading, shares of Coinbase are up a little more than 7%.
Certainly, Coinbase’s results are a welcome dataset for both crypto bulls and investors in the company alike.
Let’s explore how Coinbase beat analyst estimates, and what it is forecasting for the coming quarter. Can the company keep up its return to adjusted profitability? What does it say concerning Q2 crypto trading activity?
Coinbase’s Q1 2023 results, explained
If we compare Coinbase’s Q1 2023 results to its year-ago totals, we are presented with an odd set of numbers. Yes, Coinbase’s revenue in Q1 2022 was far greater ($1.17 billion) than what it posted in its most recent quarter. In contrast, however, in the year-ago period, the company’s net loss was far greater ($430 million) and its adjusted EBITDA far smaller ($20 million).