Coinbase Global (COIN) 13 May 212021 Q1 Earnings call transcript

My name is Erica and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase First Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] Thank you. Anil Gupta, Vice President, Investor Relations, you may begin your conference.

you. Thank welcome first and call. XXXX the to afternoon, quarter Coinbase earnings Good

had read me Brian published CFO. Alesia all are today's on I opportunity Co-Founder you've Joining website call, and our Armstrong, Investor on earlier which shareholder our letter, and Relations CEO, hope the was to today. Haas,

risks, may factors from started, Actual at results statements. and investor.coinbase.com. could I'd get you our today's we on to these forward-looking information to remind differ IR other SEC letter that, shareholder forward-looking included vary make materially uncertainties during cause results Before statements website available like filings today's that in statements, concerning call, and we from may our is

We useful financial believe isolation results be financial certain of measures. addition today financial to to trends of measures an information operations. that discussion Non-GAAP GAAP measures for, substitute include adjusted will EBITDA, measure. Our non-GAAP provide and to and or results from our relating to, a should references investors, management condition not regarding as in a financial considered non-GAAP

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view Our next decentralized asks, how competition question Coinbase comes crypto from L, mainstream, exchanges? becomes does Alan as with more who

I'll one. Yes, that take

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innovation ton happening and of NFT's. There's a this applications. in the a a lot there's great, here we is heard cryptoeconomy, so lot of So, of third-party DeFi s with examples

them make the call easy just kind things decentralized previous is daps want trusted. of all available people answer, that for we Some or and to another and I said to them to name make our DeFi and apps, use these in of like customers,

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crypto the choosing economy. more access the economy services while crypto and exploded, are users and our So, to more Coinbase

model? Coinbase's question Are this regulation another long what from asks, currency? over have Coinbase's business Alan to on risks We any with term core associated crypto stance who L, government there is

and crypto and educational it be using and resource that Yes, economy that proactive so decided doing out want to the earliest Coinbase, wasn't have regulated going to regulation thoughtful actually a necessarily this if sought a we've even an reasonable embrace thing and we to our assumed to about tried days the to be teach is regulators for our for them regulation do, reach proactively stance a crypto be on billion yet have to the law. of And from to to always reached in people steps what in it's is and which industry. we always to required industry them we

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the while bullish we are say Thanks moving the are we priority we for I is International market would top the growth We to faster And on markets. overall. would growth in approach global in to more like always that, move than slowly question our a and Samir. like. international

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accepted Adam push becomes there how from comes than of more by be work question Coinbase cryptocurrency with and to will asks, who rather more institutions as these next the Will institutionally industry, used [ph], banking P respond? Our a individuals?

think to don't world, need it lot retail of those both important customer as both and and both and off actually money served get a with crypto using we and billion a institutions both in for institutions the to equally people of us, our to retail have the in we think of segments rather of fiat So individuals, there's than them economy are individuals, institutional, to so ground and be the it. -- really equally I

integrate a way, here I Coinbase transaction cryptocurrency in really is compliance we compliance difficult, opportunity terms we how starting think in very that meets a difficult of technology on Now, monitoring with that of blockchain mean, terms that securely of of we've lot distributed and obligations. with an do had actually how way do there's dozens to problems I banks geographically how store work to we help to blockchains, solve analytics by and our blockchains which in and a cryptocurrency, for there's in

companies through I what and to Coinbase so a solutions that these that is built can expose And product can of we're think other cloud. do we that we've doing upon, on build start called some

other with offer banks we're like API's any like imagine for can other integrate services to that of company blockchain. it use AWS starting really kind can this the to of crypto You and is and our where kind more

think for time. big opportunity a I So be that'll us over

used exchanges aren't listing debut get can coin choices? add coins or quickly new [ph] how as prices to qualify Ed quickly are issue such asked process and escalate more to [ph] M why a Nathaniel there both C and new question, this other tokens to various your parameters add what can you Additionally, coins selection that advantage?

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to where many doubt sometimes that because there's The them but that that that day up, last by review -- debut we so also thing about process. well, able keep going sorry, I'll all just the no going here add we're in we those we assets listings. there's which the we're coins, world be unless these and we asked to be a question to accelerate at, the one mention call not to accelerate process So need site, we things look are quickly we to

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get So, time can and and from through and it, so about go there's get real submit way any we've backlog it through and of making their had can that need that to hundreds of asset demystify our we we there, hopefully feedback asset we'll submit there process issuers request, more a issuers a through. team accelerate assets

Our user years? is What growth next base question seen efforts in put remain Ryan this asks, from into year? And advertising anticipated comes the constant trajectory D as this for significant of What I've in being [ph], the who are growth coming Coinbase to Coinbase expect growth? does late.

that glad our you've I'm advertising. Ryan. seen Thanks,

less sales if at spent our we on XXXX. XXXX revenue marketing, X% look and historically, financial than So, you results of for and

we in some of investments shareholder And As trends investment have planning at in app we're to QX is top our are to beginning levels. been traction, XX our we've to these And also, from to evidenced apps here, quarter-to-date iOS been weeks make having shared our early QX outlook, our XX% in spend and MTU update what Android. two XX% net the letter increase revenue. increasing by free our up significant our our that QX we're as has our seen see signs on over to

these and sales marketing into are our efforts paying off. we So seeing

overall in scenarios could market. be. which a earlier, trajectory the growth don't just Coinbase you price of at shared years. in our would on I that volume outlook thing are price other point, influenced with our this is this we've specific the coming As as revenue, remain the provide the of on we shared about revenue the crypto economy note to on coins the in of potential constant conditions, growth out question asset And provide expect growth, the there's your what of we in trading turn historically, volatility, Bitcoin, number really volatility platform, our crypto has lot reflects our by MTUs

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Great.

turn we'll Erika, from it over So to analysts. questions the

Your Lisa Instructions] the [Operator of first from MoffettNathanson. comes Ellis with line question

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Your with next Kyle from question is Voigt KBW.

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Thanks. I’ll address that question.

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with is Hill question Kenneth Capital. Loop next Your from

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maybe feel free please jump start in. to And Thanks. and I'll Brian

So, services today US and and UK of Europe. in suite products and in a we full the offer in the

market regions significant not step similar of you We Europe services. crypto when that's do efforts in in the to world countries, our we're more rest and countries to outside that's more XX% is so offer and global marketing suite full addressing where users those do most what and to do fee and UK to of the our can really what disclosed -- offer the mentioned, We looking we the Coinbase when at as time was in and the I and crypto benefits that add XX% to US. comment we of those and approach that So, countries. we've that of earlier, do platform, today, this we in more more is the of that have provide services that we the expand

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Mark is Palmer question from next Your with BTIG.

on that How assess prime product what my demand? And prime the prospects you the taking if hedge your new of could as institutional are? your lending well take brokerage funds brokerage for fund insight mutual you you on from complexes. seeing Yes, thank give Thank to you. for and question. would aspect you on are demand from some what large side kind product get its the Wanted of

Great, maybe in. Brian, I'll jump and again start please here

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Thank you.

Your Harshita Bernstein. next is Rawat with question from

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we're one you the I really question. Erica, kind innovation see a a future you're at like you'll the hopefully days more gives of the sense think have and internet, in early that seeing for it very we of, the and So of time of of some opportunities just as I is, ton well. think

Owen comes Oppenheimer. with question from Lau final Your

thank taking Good my afternoon for question. and you

quarter almost I months far I second I so but be three think doubled in your think cash trading it's early strong. to billion still seems think in $X to days, your volumes balance and

back initiating what So like Coinbase, in as of priority the price, a if you stock reinvesting think capital how fundamentals there's management would between about is and the And disconnect things buybacks a regarding whole, business, you. buybacks? that? M&A, to even the the Thank

Thanks the for question.

Our focus is growth. on

through Our acquisitions, we'll that so through investing makes expanding our where focus investing sense spoke organically expanding about through geographically growing earlier. that and And is as growth, with that and product in hiring, on in product suite do we our technology our organically MTUs, roadmap. both in do we'll

profitability time, volatility focused balance low, think could for in time, capital as prepare point our high we revenues at and we high our in to in to profitability, any that use and support dividends product revenues shared and cash going where sheet growth. we're diversification all the there. want are is amazing but are we are lot future a a potential when earnings we of to or ensure When up term, long these decline share you, repurchases there are get deploying at winters balance build need to and on periods We environments, this in in suite this that in we some that sheet other of cash see nor crypto not until revenues. us to revenue our invest have we on high and that investing the because in for And of that we actions, with have revenue for we're for the building we've can

Okay. you very Thank much.

everyone with we our joining you and forward you us for speaking thank on call. Well, today look next Great. to

does Thank This conference you. conclude today's call.

disconnect. now may You