Coinbase saw 66% decline in transaction revenue in 2022 but remained “resilient”

Feb. 21, 2023 at 10:39 pm

By Mike Dalton

Coinbase saw its total trading volume for 2022 decline by 50% year-over-year.

Coinbase published its end-of-year shareholder letter today, Feb. 21, in which it described its financial standing for the previous quarter and for the entirety of 2022.

Coinbase publishes revenue, shareholder data

Coinbase said that it saw its total trading volume for 2022 decline by 50% year-over-year. It also saw its transaction revenue for 2022 fall by 66% by the same metric.

The company said that it nevertheless remained “resilient … despite major shocks to the system.” Coinbase attributed its decline in performance to two high-profile collapses: that of Luna and Terra in May 2022 and that of FTX in November 2022. These events caused the crypto market to lose 64% of its value, in turn affecting Coinbase’s own revenue.

The company’s net full-year revenue (which includes more than just its transaction revenue) fell from $7.4 billion in 2021 to $3.1 billion in 2022.

Coinbase also noted that it has diversified its revenues into subscriptions and services, allowing it to experience increased quarterly revenue. The company’s fourth-quarter net revenue in 2022 was $605 million. Though that number is down significantly from $2.49 billion in Q4 2021, it is up 5% from $576 million in the third quarter.

The firm’s net loss per share was $2.46 for the fourth quarter of 2022 and $11.81 for the entire year of 2022.

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