Coinbase’s latest results provide mixed feelings 🧐; Mastercard is winning the Web3 Wars too 😎; Tech giants are doubling down on Web3 🚀

FinTech is Eating the World, 23 February

Hey Everyone,

Happy Thursday! Today’s issue is the best one yet as we’re looking at Coinbase’s latest results that provide mixed feelings (a closer look at the number + why the bullish case for Coinbase is still valid), Mastercard, which is winning the Web3 Wars too (Visa, you here?), and tech that giants are doubling down on Web3 (learn from them!). Let’s jump straight into the amazing stuff 🌶

Coinbase’s latest results provide mixed feelings 🧐

Earnings call ☎️ Crypto giant Coinbase COIN 0.00%↑ just shared their financial results for the previous quarter and provided the full-year data. While the company was trumpeting how it was "largely resilient" last quarter, the devil is always in the details.

Let’s take a look.

The numbers 📊 Here are the key numbers you must know:

• Coinbase’s 2022 net revenue came in at $3.1B, that’s -66% year-over-year (YoY).

• Q4 net revenue was $605M, up by 5% quarter-over-quarter (QoQ).

• Transaction revenue continued its downtrend in Q4 (fell 12% QoQ to $322M), but the slide was offset by an uptick in interest income. Q4 interest income came in at $162.2M and was up by 79% QoQ 😳

• Subscription and service revenues, an area of focus by the company, grew 34% QoQ to $283M in Q4. Subscriptions and services accounted for nearly 50% of overall revenue in Q4, mostly thanks to interest income.

  

• Coinbase’s user base continues to shrink. The company said it had 8.3M monthly transacting users (MTUs) during the fourth quarter, down from 8.5M in the prior period.

• The company reported a Q4 net loss of -$557M and a 2022 net loss of -$2.6B. Ouch 🤕

What does this tell us? 🤔 In short, Coinbase’s latest results are definitely mixed. But let’s look at the big picture here + see why the bullish case for Coinbase still holds.