Crypto exchange Coinbase exceeds revenue expectations in Q4 2022

ambcrypto.com:

Cryptocurrency exchange Coinbase has exceeded revenue expectations for the fourth quarter of 2022, but its transaction volume continued to decline.

The exchange’s net revenue for the fourth quarter stood at $605 million, exceeding the $589 million estimates of the Wall Street Journal. This revenue is 5% higher than the revenue of the previous quarter of $590 million. The details have been shared in the Fourth Quarter and Full-Year 2022 shareholder letter released by Coinbase.

Transaction volumes fell 12% from the previous quarter. However, Coinbase attributed its 5% quarterly revenue growth to a 34% increase in subscription and service revenues.

Along with the rise in Bitcoin’s [BTC] prices, Coinbase shares have risen significantly by 78% in 2023, but are still down 67% year to date. Subscription and service revenues, a company priority, increased 34% quarter over quarter to $283 million in Q4. Subscriptions and services accounted for nearly half of total revenue in Q4, owing primarily to interest income of $162.2 million.

Though Coinbase has stated that its staking products are not securities, staking revenues fell compared to the previous quarter. This was because a drop in crypto prices outweighed an increase in staked balances across all crypto tokens.

— Brian Armstrong (@brian_armstrong) February 8, 2023

At press time, Coinbase was being investigated by the Securities and Exchange Commission (SEC) for its staking products. This is similar to the probe that resulted in crypto exchange Kraken agreeing to a $30 million settlement with the regulator.

The SEC shutting down Kraken’s staking service in the United States