Coinbase and Block surprise with beat earnings and revenue

Shares of Coinbase Inc. and Block Inc. rose in late trading after the two crypto-focused companies surprised earnings and revenue for their quarters that ended March 31.

Coinbase posted a loss per share of 34 cents on revenue of $736 million. Revenue was down 33% from the same quarter last year, but up 22% from the previous quarter. Analysts were expecting a loss per share of $1.45 on revenue of $655 million.

Reflecting its efforts to cut costs, Coinbase posted a net loss of $78.9 million in the quarter, compared to $429.7 million in the same period last year. Cost cutting is positive, but customer loss is not, and Coinbase saw consumer transaction volume drop 71% year-over-year to $21 billion in the quarter. , while the volume of institutional transactions fell by almost half, to $124 billion.

Bitcoin was the most popular cryptocurrency traded on Coinbase during the quarter, accounting for 32% of trading volume and 36% of trading revenue. Ethereum was at 24% and 18% respectively, and other crypto assets were at 45% and 46%. Consumer transaction volume increased 5% quarter-over-quarter, while institutional transactions declined slightly by 1%.

“This quarter marked a turning point in our drive to build a more efficient and financially disciplined business; a company that can do more for less,” Coinbase said in a letter to shareholders. “We’ve reduced costs, doubled down on operational excellence and risk management, and continue to drive product innovation and regulatory clarity.”

The numbers were well received, with Coinbase shares up more than 9% after the bell.

Block also surprised, reporting adjusted earnings per share of 40 cents on revenue of $4.99 billion, compared to 18 cents per share and revenue of $3.96 billion in the same quarter. last year. Analysts planned adjusted profit of 35 cents on revenue of $4.6 billion.

Adjusted earnings before interest, taxes, depreciation and amortization came in at $368 million, well above the $268 million expected by analysts.

By product, Square’s Cash App reported gross profit of $931 million in the quarter, up 49% year-over-year and from $848 million in the prior quarter. Square brought in $770 million, up 16% year-over-year, but down slightly from $801 million in the prior quarter.

For its outlook, Block said it expects adjusted earnings before interest, tax, depreciation and amortization of $1.36 billion for fiscal 2023, up from its previous forecast of 1.3. billion dollars. Adjusted operating losses are expected to be $115 million, down from the $150 million previously forecast. Bulk shares were up more than 2% late in the session.

Photo: Coinbase