Coinbase just dropped the Q1 earnings and outlook. As expected higher revenue than in the entire 2020.
Q1 summary:
• ~$1.8 billion revenue
• Adjusted EBITDA of ~$1.1B
• Net income of $730-800M
• 56M verified users (+13M)
• 6.1M monthly transacting users (+3.3M)
Growth over last quarter
• Revenue —> 207.6%
• Net income —> 312.9%
• Traded volume —> 272.0%
Assets on Platform are ~$223B and $122B of that is coming directly from institutions.
Coinbase expects meaningful growth this year driven by increased institutional interest but admits that its insti revenue is inherently unpredictable
This is not unexpected but just to illustrate how crazy the growth has been, this chart says it all
As expected, the ratio between volume and revenue has declined from 0.67% to 0.56%. This is simply because way more volume also means way more market makers and fees get skewed lower. But the ratio is still higher than I expected, which means more retail has come!
Talk about another absolutely bonkers chart of monthly active users
Unfortunately, this is about everything that Coinbase has given out right now. We were hoping for a more comprehensive update. If you want to read our analysis of these numbers tomorrow morning, become The Block Research member.
One last thing I will add since I'm seeing a lot of that - projecting revenue forward by assuming constant volume growth makes no sense to me. Coinbase volume is incredibly cyclical and if markets slow down a bit, it's totally possible we even see a decline. Just watch volume
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Coinbase is dropping their Q1 financials today. The revenue figure alone will blow people away. Based on my model, Coinbase will generate $1.45B in revenue Q1; about $1.13B coming just from transaction revenue. That's 13% more than the revenue of the entire 2020.
We can get pretty close to the actual numbers IMO because we have the perfect data for volumes and previous ratios. My assumption is that the ratio between tx revenue and volume drops from 0.55% to 0.35% because more volume will be market makers and therefore lower fees
If it doesn't drop as aggressively as I think, the revenue number would actually be even higher. This is what I'm expecting though and it's gonna make a lot of people take the direct listing more seriously.
Interesting situation going on with ForceDAO. Liquidity has been withdrawn, price is down 90%+ and there are indications that it could have been a white hat "hack"
I would highly advise not to trying to trade this though. There is a lot of unknowns still. It looks like there were two exploiters and the one who returned FORCE didn’t drain the UNI pool. Not sure if they are associated
1. Great browser wallet 2. Top notch block explorer 3. Native stablecoins 4. Robust infrastructure provider and API 5. Strong developers and incentives 6. Data analytics suite 7. User funnel and cheap onboarding
By looking at these parameters, nothing comes close to Ethereum and likely won't for quite some time.
EVM-compatible chains obviously have an advantage since porting infra and developers is easier.
If you do want to diversify exposure beyond ETH though, I'd suggest focusing on these parameters. The better they are fulfilled, generally the better the chance of success will be. Take a very non-tribal approach and focus on where the wind is blowing, not where it's at now
CZ is right now doing an AMA on Clubhouse and there were like 10 random people already asking questions and not a single one about the CFTC.
Someone just asked. CZ: “The reporting already said there is no misconduct by Binance. As a business, we must maintain no comment policy on regulatory issues. In general, we maintain very collaborative relationships with regulators around the world and have an active dialog”
“Some journalists want to get some clicks and sell some ads. Max Baucus also just joined us so we are actively trying to work on these regulatory relationships”