Coinbase Earnings: Some Takeaways – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

This content was originally published on Ellie Frost’s Substack.

In case you missed them, below are the main results from yesterday’s earnings.

  • $1.8 billion revenue
  • $1.1 billion adjusted EBITDA
  • $730–800 million net income
  • $223 billion assets on platform
  • 56 million verified users (VU) and 6.1 million monthly transacting users (MTU)

What does this boil down to? I had three main takeaways and questions regarding trading take rate, users and 2021 projections.

Trading Take Rate

We are only provided a total revenue of $1.8 billion. If you arbitrarily take this and the $335 million volume, you would get an impressive ≈54 bps as Q1’s take rate. Huzzah! Does that definitively mean that the take rate remained high because retail users came in force? No.

There are three lines of revenue: transactional, subscription, and other. Note that “net revenue” is considered transactional and subscription. However, these three lines of revenue all have different drivers.

Source: S-1 Filing

Source: S-1 Filing

Transactional revenue is based off of trading volume, which is largely driven by volatility.

Subscription revenue is custody, staking fees, and so on, so it is largely driven by assets under management (AUM).