Shares of Coinbase (COIN) rose more than 18% on Friday after the company’s CEO, Brian Armstrong, said in an earnings call Thursday that the exchange had a “turning point” to start 2023.
Armstrong notes that the company experienced net sales growth of 22% in the first quarter of 2023 compared to the last quarter of last year, according to a transcript of the call.
Coinbase also witnessed a 24% quarter-on-quarter drop in operating expenses.
Says the CEO,
“Q1 was a real turning point in our financial performance. Turnover increased and costs fell.”
Armstrong also says Coinbase had positive adjusted EBITDA in 2023 Q1. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and it measures net income with all those factors added back into the mix.
“So zooming out for a second, crypto obviously goes through many up and down cycles, but the best companies in the world, including the most trusted brands like Coinbase, tend to gain strength in down markets. This is the fourth crypto cycle Coinbase has been through, and we’ve come out stronger with each cycle. So I think we’ve built a really resilient business here. We have diversified our revenue stream away from trading costs and we are in a very strong financial position with positive adjusted EBITDA in the first quarter.”
COIN is trading at $58.24 at the time of writing.
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