Coinbase (COIN) shares rose more than 18% on Friday after the company’s chief executive officer, Brian Armstrong, said in an earnings call on Thursday that the stock market was facing a “tipping point” quarter to kick off 2023.
Armstrong notes that the company reported 22% net revenue growth in the first quarter of 2023 compared to the last quarter of last year, according to a transcript of the earnings call.
Coinbase also saw operating expenses decline by 24% quarter over quarter.
Says the CEO
“Q1 marked a real turning point in our financial performance. Revenue has gone up and costs have gone down.”
According to Armstrong, Coinbase reported positive Adjusted EBITDA in the first quarter of 2023. EBITDA stands for earnings before interest, taxes, depreciation and amortization and measures net income with all of these factors thrown back into the mix.
“So if you just zoom out, crypto obviously goes through a lot of up and down cycles, but the best companies in the world, including the most trusted brands like Coinbase, tend to get stronger in declining markets. This is the fourth crypto cycle that Coinbase has gone through and we have emerged stronger from each of them. So I think we’ve built a really resilient business here. We have diversified our revenue streams away from trading fees and are in a really 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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