The exchange closed the quarter with an adjusted $2.46 per share loss.
It generated $120 million in transaction revenue in January 2023.
Crypto exchange Coinbase (Nasdaq: COIN) reported a loss of $557 million in the fourth quarter of 2022 as the net revenue plummeted 75 percent year-over-year to $605 million. On the positive side, the quarterly revenue exceeded the market estimation of $588 million.
Coinbase Beats Market Estimation
Further, the latest net revenue strengthened from the previous quarter's dip of $576 million, thus coming in about 5 percent higher. However, the losses widened in the prior quarter. Additionally, the crypto exchange reported a net profit of $840 million in Q4 2021.
The adjusted quarterly losses came in at $2.46 per share, beating the market estimates for a loss of $2.52 per share. Despite that, Coinbase's share price maintained its downward momentum. COIN lost 4.8 percent of its value as the markets closed on Thursday and shed another 1.16 percent in after-market trading.
Coinbase share price after Thursday's closing
Dissecting the Revenue Streams
The company's shareholders letter published on Thursday detailed that the transactional revenue of the crypto exchange declined by 12 percent quarter-over-quarter to $322 million in Q4. On a yearly basis, this drop is even more staggering at almost 86 percent.
On the other hand, the crypto exchange's subscription and service revenue has strengthened significantly. This revenue stream generated $282.8 million, compared to $210.5 million in the previous quarter and $213.4 million in the fourth quarter of 2021. It was pushed mainly by the $182.2 million in interest income that Coinbase received.
The California-headquartered cryptocurrency exchange handled a trading volume of $145 billion in Q4 2022, which is down 9 percent and 74 percent quarterly and annually, respectively. The impact of the FTX collapse triggered the dip in this figure.
"In the wake of FTX and other crypto company failures, we have seen increased regulatory scrutiny," said the Founder and CEO of Coinbase, Brian Armstrong. "I believe this is a good thing for the space and that it will ultimately benefit Coinbase."
Recovering Demand
Further, the recent upward momentum in crypto prices is benefiting Coinbase. The exchange generated $120 million in transaction revenue in January 2023. However, it cautioned investors "not to extrapolate these results forward."
As for the Q1 2023 outlook, the exchange expects to bring subscription and services revenue between $300 million and $325 million. It also expects the transaction expense to be in the "mid-teens as a % of net revenue."
"Crypto markets have improved so far into Q1 as compared to Q4," said Coinbase's CFO, Alesia Haas. "Our outlook is reflecting what we believe are the most stable and predictable elements of our business, specifically subscription and services revenue and expenses."
Crypto exchange Coinbase (Nasdaq: COIN) reported a loss of $557 million in the fourth quarter of 2022 as the net revenue plummeted 75 percent year-over-year to $605 million. On the positive side, the quarterly revenue exceeded the market estimation of $588 million.
Coinbase Beats Market Estimation
Further, the latest net revenue strengthened from the previous quarter's dip of $576 million, thus coming in about 5 percent higher. However, the losses widened in the prior quarter. Additionally, the crypto exchange reported a net profit of $840 million in Q4 2021.
The adjusted quarterly losses came in at $2.46 per share, beating the market estimates for a loss of $2.52 per share. Despite that, Coinbase's share price maintained its downward momentum. COIN lost 4.8 percent of its value as the markets closed on Thursday and shed another 1.16 percent in after-market trading.
Coinbase share price after Thursday's closing
Dissecting the Revenue Streams
The company's shareholders letter published on Thursday detailed that the transactional revenue of the crypto exchange declined by 12 percent quarter-over-quarter to $322 million in Q4. On a yearly basis, this drop is even more staggering at almost 86 percent.
On the other hand, the crypto exchange's subscription and service revenue has strengthened significantly. This revenue stream generated $282.8 million, compared to $210.5 million in the previous quarter and $213.4 million in the fourth quarter of 2021. It was pushed mainly by the $182.2 million in interest income that Coinbase received.
The California-headquartered cryptocurrency exchange handled a trading volume of $145 billion in Q4 2022, which is down 9 percent and 74 percent quarterly and annually, respectively. The impact of the FTX collapse triggered the dip in this figure.
"In the wake of FTX and other crypto company failures, we have seen increased regulatory scrutiny," said the Founder and CEO of Coinbase, Brian Armstrong. "I believe this is a good thing for the space and that it will ultimately benefit Coinbase."
Recovering Demand
Further, the recent upward momentum in crypto prices is benefiting Coinbase. The exchange generated $120 million in transaction revenue in January 2023. However, it cautioned investors "not to extrapolate these results forward."
As for the Q1 2023 outlook, the exchange expects to bring subscription and services revenue between $300 million and $325 million. It also expects the transaction expense to be in the "mid-teens as a % of net revenue."
"Crypto markets have improved so far into Q1 as compared to Q4," said Coinbase's CFO, Alesia Haas. "Our outlook is reflecting what we believe are the most stable and predictable elements of our business, specifically subscription and services revenue and expenses."
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Executive Interview | Jas Shah | FMLS:25
Executive Interview | Jas Shah | FMLS:25
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
