Crypto exchange Coinbase reported $605 million in net revenue in Q4 2022, based on its latest earnings report published after the bell today.
Since Coinbase's earnings report was released, COIN shares briefly jumped 3% to $64 before falling back to $62 in recent trading.
The exchange's latest figures show a 5% increase over the previous quarter's figure of $576 million, and a touch above analysts' estimates of $588 million.
Based on company filings, more than half of that revenue ($322 million) was generated from transactions, while the rest came from subscriptions and services ($283 million). The former increased 12% from the previous quarter, while the latter increased by 38%.
However, on an annualized basis, net revenue fell from $7.4 billion in 2021 to $3.1 billion in 2022 reflecting slower activity across the entire industry.
"The series of events that took place in the crypto market during 2022 worsened the already weak macro situation," the company reported. "However, Coinbase and the crypto-economy have proven resilient, and the long-term fundamentals remain strong."
The Coinbase company has taken other steps to reduce expenses in 2023, including a 20% reduction in the number of employees and other cost management efforts. By the end of the quarter, it expects a 25% cost reduction from Q4 2022 when excluding the NYDFS settlement.
The report also states that 2023 could be a "crucial year for crypto policy in the United States and abroad." Conversations on the subject have gained more attention following the fall of FTX last year.
"Coinbase has concerns about actions that seem more designed to be punitive and reactive than to address the interests of real users and the reality of how crypto works," the company said.
Coinbase CEO Brian Armstrong spoke out against the SEC's recent crackdown on staking service Kraken, which he believes does not violate securities laws. His company also denied that stablecoins like BUSD constituted securities after the SEC issued Wells' notice to asset issuer Paxos.
