Coinbase Global (COIN) 10 Aug 222022 Q2 Earnings call transcript

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase Second Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] Anil Gupta, Vice President, Investor Relations, you may begin your conference.

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

Haas, you've me Brian read our President site Emilie Alesia are today's our and earlier I Co-Founder and Joining was call IR and shareholder Armstrong, letter, on published opportunity had all the and which CEO; COO; today. CFO. to hope on Choi,

concerning Actual is Before risks, results today's we may call, that during we today's from factors other get started, and our to materially forward-looking uncertainties I'd filings. results statements. that like statements. these vary to Information included remind you cause SEC may make could in differ

on Our discussion financial measures IR be Reconciliations GAAP measures. directly GAAP website. considered today financial should comparable not to, in for, include letter will financial substitute measures certain in as our non-GAAP the measures. provided a most to Non-GAAP to are addition references shareholder the

our questions. take are again to using the Say analysts. questions we will platform Technologies addition, post shareholders enable some our research in We to from live once And

it I'll for Alesia opening some that, Brian and over Brian? Before comments. to turn

right. All Anil. Thanks,

the for comments, So on to I'd three topics. touch opening like

one. asset first in looking are and this The where is we broadly cycles crypto at

momentum The about And to about second and this regulatory be topic in how landscape. the our is winning the product we're is going environment. third

start let's cycles. by So talking about price these asset crypto

fourth through. before. of people internally that and -- never Voyager public and It's Three never Coinbase. that scary, truth There's before, impact is Coinbase. that we've they go any lots none We've like things it always these especially it's the it through. with say as at Celsius, we and cycle on through a as our our as this all collapse, And bad crypto is of seen things So there's and of haven't often gone there's a But it we actually Arrows them cycle seem material learn company. and probably phrase first a as seems, seems. things we one crypto contagion as we that had every say we've good like bit gone little although this this Luna And and if

at do what keep so do down we of cycles we in Well, building. all, first Coinbase? And

And cycles, we to scaling. -- usually growing we're so in focus have up lot it's and on a

And so our doing get of debt, fresh actually to breath on of back focus down in products, our and cycles, it's existing air. in a We go paying growing down products. kind tech innovation

so on to And for to building focusing customers. of products it's that back been kind and get great keep nice

we kind make The really in XXXX do down on going strong great. downturn, sheet managing other can big been thing to expenses we is of outlast we that had any intentionally we raised to And this balance which we into that cycle. has focus a capital ensure sure closely

also We benefit markets, in down and step that's have our seen historically casual to time. back competitors over a been take

during built Sometimes previous got has there's things downturns. then to than arise like the cycle And that every prior due the those innovations and M&A landed that. one interesting opportunities higher that

and think zoom And I cycles. look of so, important it's these performance kind to across the Coinbase out of really at

as you we is had just we think important. over years, course, was in looking of results well, the crypto two one letter XXXX, I in compare over of the so, looking back cycle but QX last put And earnings to if COVID thing there our

time Our tripled verified that users in have nearly frame.

Our have monthly grown users Xx. transacting

Our Xx. increased trading total has quarterly volume

nearly Xx. increased asset platform has Our

more two services And revenue, total contributed which only was net our of X% subscription revenue, our now than our engaging years is more predictable, products. our of with X/X just MTUs XX% two up are multiple That XX% was which and has So, number to years ago. ago.

crypto cycles, that But not tells across remember or price have quarter is you business a given down if any Any you year. the be to given it or evaluate linear. really up much even could So story. different

So the that's little cycles. price a bit about

our second Let's momentum. topic jump product around to the

this So five product Coinbase, on period, very is areas. focused in

The app. the This those accounts it's is verified is so retail million for one Coinbase the first that us. users, our generator revenue XXX of one and large a or majority for

product, our second The which the is very well. up Coinbase world, which around Prime, is doing brokerage prime serving ended has institutions

established of Coinbase revenue we'll crypto something our with fourth And one business, of in is and there of start-ups is business an like have into later. with which start-ups, broadly over we self-custodial growing be similar APIs. things helping app, working major staking touches And that, materialize. and products on nicely. fifth developers, believe some a protocols Coinbase area we subscription one various which also source one, we is Cloud, to third their services the just on into there last has grown will companies products believe integrate suite Wallet, The awesome time, the our the actually this a out not and for great The we touch or and our of that AWS growth WebX, product that will call our we're but one on future thousands

bank, your you integrated if people trusted and financial products of the generally building one primary method try any your most information, easily and products. we for then products, system financial the primary help So the the payment switch that can products for up differentiate access making the one account of easiest to your Coinbase out to over use your goal your you by access verify so our open eventually there, sign And account them. is to billion them of crypto, and access your course, the you suite to of be and and these identity, X our connect

So there We've really in a number nice the suite. product there's quarter. wins the a integration exciting of had into last

go as their have for they diligence seen develop largest huge institutional few through as their world. several the selected to may asset manager a took deal. is and It were actually with reasons. by BlackRock deal is partners this This them Meta close You crypto in years the BlackRock that offering. a really we of and

more it to think companies first and preferred I the of time. reasonable which And crypto is we're that largest who the offerings, will company Fortune XXX, these the in for more only of really to I platform in most into believe, situated the trusted world be their as really many be the over the partner increasingly and integrate choice to crypto. public companies the want uniquely shows Coinbase

the we multiple can can the in but customer companies so win platform, successful So a build only I also world segments. that it across think retail not we deals shows with close largest

now period. wallet most has this the a that this advanced in We've been product accelerating And crypto wallet been past self-custodial think getting self-custodial number had Our launches really also in reviews believe I our of of it's rave people market. wins pace the quarter.

So lastly, having start just the I interactions world. CFTC the SEC and numerous regulatory with I'll the touch although around on want we've regulators environment. to been And recent great with headlines, the

process. not become if So a our in us asset a May, listings know inquiry do including information the formal information, SEC will voluntary yet for for investigation. sent about We this request

been and discussion, around assets out, world, the countries legislation SEC bipartisan see the there more toward if the is we're the for welcome progress the in As to bills recently regulators U.S., inquiry are crypto. pleased we've in around Congress world several U.S. regulation. And way support. the securities all for we and discussion strong around committed it. an this a digital their Tuning both through with In that clear with making productive to opportunity with

point legislation is regulation that in to work security, crypto various such proposes legislation year several crypto some the technology a in people is common help comprehensive that the NFTs U.S. passed what be can oversight The a crypto CFTC what And few recently stable stable of asking and get sense is happening. ecosystem in weeks that on the order where probably entirely this is for crypto to they executive the middle. else what White now may regulatory passed bipartisan government to frameworks the legislation one potential When look ago, out For the innovation issues told crypto D.C. in aims year what where this in with later clarity done. frequently to others actually seem are a we considered on legislation and put work preserve United seems clear the to an We bill the of next caught the two instance, departments is that assets and as now authority the the crypto see develop between States. and we D.C. Stabenow-Boozman of parties I for together all artwork. comprehensive me and of to crypto to coin relevant commodity, forward engaging House provide a something luck, in clarify was right SEC and get with

Assets, company, seeing recent Australia, Coinbase the the Brazil as course, passage EU in a of in clarity U.K., Of seeing regulation. the we're well. Kong, and MICA and other is toward also Hong the with in similar markets moves We're or global globally, including Markets positive regulatory Crypto developments

regulations We're some for it's ways, some crypto early the since say, the have Company. better it of days crypto, the most more is leaned sort So trusted in ways regulation the but the Coinbase. in into there for strange and to in the -- most of brand is

minimum, We we're with traditional bad don't crypto innovation at level as are time who this a this to than passes champion will and with ensuring this it the Therefore, technology see We preserves us. that take industry, more with financial continue regulators field legislation any engage potential happy of world will a around that be thing. on for playing meet a services. the to and a to any treats

SEC move to request contrary, it's say to as to can share. else space have we don't forward. in have the broadly regulatory I way best particular, more the but about keep plan developments I you we we the the industry On believe in information help on anything updated the

two going the sheet, into strong in if deals look company cash the space of that, discuss to Alesia let crypto companies QX. term through with downs of balance their last here be a overarching And and many winning the offerings. Alesia, integrate is responsible up you scary, markets It's industry. largest here over over over years me plenty cycles to crypto on continuing to We're this the we're wrap to ups it the We're it's to by through on a the years, and fundamentals, before. with long but to turn been seems. just Coinbase XX down managing over as the hopefully, execution expenses hand during succeeded it as has It never message We've it So clear. focus last through product things before great seems. closely. seems as never I to bad good and the with it

Thanks, briefly to Brian. I'm year. the we on areas going of these strength touch of then market to share and our new adapt focus briefly recap the for conditions remainder the outlook as and QX,

to recap in First, Down which results. are QX. headwinds, our create reflected financial markets QX

that pleased only as million. million note were And totaled We're compared X to MTUs Our MTUs lower see QX. or X to engaging decline products. with we was XX% X% non-investing our

about seeing but behavior non-investing we'll that in MTUs staking a participating shift talk as so And but less in and are definitely we're other increasingly trading later, products.

and very better behavior billion we've in this pro-style shifts makers, more what and and influenced makers shift transaction the traders retail markets prior activity. to volume is time, down we traders million, Over in concentrate tend $XXX to that respectively. we consumer consistent market volume, today, Much exchanges were then in but takes platform. to revenue and down huddlers. market traders. And customers that trading turn, for Both look the products where products building total heavily to to and volume, concentrated are This of financing shift place seen forward metrics from volume, XX% a in pro-style market was a $XXX retail derivative with are was offshore by prevalent. amongst compete Our market XX%,

May in insolvencies. crypto Terra investors and Lastly, events there surrounding traded Luna around volume the subsequent credit as a spike was of trading collapse

spike. not insolvencies of do QX our as and up and XX% see a volume nor we're notably have as of these million We this revenues, were the to services listed which we have headwinds, result, subscription year-over-year. really and Luna $XXX did happy exposure growth not these in Despite participate to

depth of we net as $XXX pleased million. roll out breadth way of price a you trend platform. have quarter-over-quarter revenue also product at experiences shareholder at adjusted, growth subscription to and with We look our was pretty if our different our linear that line, Combined, shared continue we're in letter the to QX freeze see and you and i.e., to historic at price revenue services look on as

Our And that, $X.X billion, heavily million. adjusted by EBITDA want call was to loss out here impairments. loss but our was $XXX net non-cash was I impacted that

those net of our been our Excluding below of the impairments, our We have assets million. those of crypto loss take value when the $XXX carrying fall non-cash value value ventures would assets. investments impairments or

write-ups the don't point. if take we recovers that Importantly, above market

writing intra-quarter, to dropped even are it down period lowest as lows, sell crypto until if up intra-quarter, the point that it asset. we and recovered it the impairment during So to then never reached taking that reporting

operating market forward. our on and P&L efficiently now so, move the switch and our And that's more balance is about to conditions I Coinbase these on gears and talk impairments we're how we on how sheet. to non-cash focused want impact as of adjusting

side, steps all want On we general from to the expenses administrative our in of XX% time of expense employee $X.XX including $X.XX to our announced prior to $X that our taken the will range streamline year the highlight billion, full take but is lowering that $X.XX structure, realize we development outlook which for we've and to some We June. to of are reduction expense down financial cost several billion. technology impact billion and billion fully it our to actions,

prioritize, pause, areas On the the we've product on the side, we're maintain key Brian approach focusing outlined taken earlier. of and that five and

performance guardrail. for is loss XXXX. acknowledge we QX, on within initiatives the conditions. don't cautiously of MTU to conditioned working expense may are end But is our we're based are enough, we the about events see million outlook, market July expenses providing communicated may change those that Clearly, our range updated that of guardrail crypto event within we EBITDA our able meaningfully not deterioration the ability XXXX below to the We we we be our approach levels behaviors In see deteriorating the we that further low significant this we're exceed operate the market to That that these on the and in and stressed took $XXX another capitalization quickly customers. adjusted in guardrail. optimism optimistic or our not in hard of operate we reduce

we're as However, build going despite short operate term, more you future. efficiently we for to to want the to that we commit

with and strong financial three just position are our primary at Lastly, some risk. close I we our factors want look There assess to comments durability. that about capital to our strength and

the as USD It includes enhanced at with end letter same total includes QX, of our help which we sheet in we billion First, really cash USDC, $X.X look balance equivalents. it. provided how operate cash the understand We and the disclosures in at This you we cash. resources. shareholder had our to and

about We cash our asset. and would think coin so at are in way it as that stable treating in fungible we the to Coinbase and USD as like cash to look at daily you same operations a

no a losses financing take exposure activities, insolvencies. management. counterparty to our to risk had client from we prudent We've credit approach or no Second,

activities withdrawal We have assets financing had how taking have never broaden can a changes or we a blocked of crypto we gated for nor credit we believe from our we off continue to access ecosystem our clients. today, forward. there stand in products that any and our risk client our the We the apart is going to way strength clients within this and in this anybody operate platform, be

the of regulation, positioned to believe build We but touched crypto to for global regulatory and development on there's also digital of alongside working and enables lot that the wave Brian here. a committed innovation. framework adoption addresses workable we're but we're risk uniquely economy Third, towards a this, policymakers

questions. that, with let's So turn to

Instructions] comes Owen [Operator with Your Lau first line Oppenheimer. question from Please of the ahead. go

current trouble, also expense some million if term. winter and benefit the this for of other next Coinbase for resource year? maybe if control, last? crypto can maybe some So Coinbase if be also run to winter it are time, loss to be to based in around manage adjusted does another net And and year of last, to crypto for companies may in understand continues on EBITDA take confident and and this the lasts terms I quite how allocation current what $XXX volume this you that trading But longer trigger unfortunately,

Thanks for the I'll It's Owen. question, take Alesia. this one.

as these share And our in across the we into is expanding cycle nascent bringing some we're our that with that the back philosophy April, of in shareholder really the that days for looking from crypto in this you we So on we're S-X of our platform, business growth, days operating in shared our breakeven users building across opening we our we're approach to the cycle. But going new of our founders ecosystem. and letter. we're the letter last think important depth and breadth we to products it's early that we're way

so, we've and generate those the able profits those we're we're to profit, business. taking and do reinvesting been show And we historically, into

what we different a winter. over scenarios. stress out crypto so and we then have look two plan years. that we lasted And scenarios, multiple We Historically, at to do expenses forecast we multiyear make four can revenue for winters sure is

set do we scenarios clear $XXX historic a operate us where winter to of that into all operate that a we never so This through went a guardrail are those those. we loss. to And would can to we crypto see at we million if in we look a did exactly It's cycle. year,

constantly that scenarios, and plans take ensuring view. long-term contingency our we're so updating our we a can And updating

that manage through that will we a with management multi-period prudent can expense make balance So downturn. but investment, sure we

in we to for not XXXX future. this think are right green in we to given We and what we the to the We're products looking adoption and expense have our shoots, for of an looking every year, as every against or a continue profit make about but then opportunity. we seen the progress that that have in services seen when continue would to yet growth show but in the believe the outlook quarter be, right believe not investing

Gupta. is jump I'll back This in. Anil

we the think call on accident. I reordered

Q&A. go ground So some state shareholder for rules I'll our and back

we to quickly wanted Before principles. just I dive Q&A, our reiterate into

the the shares, same together First, the by number to questions most on that answer uploaded of going might questions themes. we're touch and we determined group

to answer listing not we answered updates. the questions the third, are plan Second, related And no will if avoid we've we in new do assets. questions of potential to past there

still For don't we example, issue plan dividend. to a

I'll the Q&A shareholders So Brian, with that, our with and start from Alesia. Emilie

light The as in and is first and the well events, security question of for some that's the mind center industry market exposure top of the leverage turbulence. at the products counterparties shareholders, their especially of we assets to have recent as many safety recent Alesia? of of

Thanks question. for this

common were just my financial crypto-specific overleveraged like the we've duration issues entities alike, opening with that issues. And no spoke business against in I controls mismatched types assets. XAC, those for major had So concerns going quarter. market. remarks, more as we to view, want a and seen financing be these Voyagers across is note Those and these under we longer flaws are inflection And of lending foreseeable the credit-specific these credit industry. deliberate first Further, seen solvency think these the on TradFi than the these were Celsius, building events a at of to lessons are in have a we us, illiquid events passed practices risky surrounding insufficient are liabilities focused have these To actually I to TradFi Coinbase said and and taking now of Many in point these risk of nature. I engaged others, were about. are into and in crypto second rather entities. shocked the in with exposure credit some consideration. that -- credit-specific crypto not prudent entities but short-term firms our reflection or that sustainable

withdrawals. I not have blocked remarks, As client mentioned my any in we

independent without management with had approval. have to is holding our our with any and beyond provides do on this choice. talk security in any customers We protected not then consent. Coinbase. minute first the lending customer Coinbase of And the protection expressly for institutional to retail for access about assets Article to is segregated design. making We've to big out our want product our We're choose not changes I UCC the risk one. not assets assets our a in X, and their a is call. do principle just not the clarified was customer agreement one clients. safety highlight rehypothecating. as known We're legal What protection it coming crypto for prior this those to customers' decisions of gears is same are customer our switch our to assets available recently what assets a topic without as Customer of our strongest applicability and risk well and to assets. credit customers. retail the user because customers And legal We're

we recently that to Our have Graywell, we you place assets. to a it. a all feel crypto would with very approach that have I Officer, ago industry-leading post we Paul a read assets, But few encourage on good blog very Chief and safeguard detailed Legal for weeks mechanism customer protection in put the penned

Great.

Brian? expressed price a shareholders public. question What's next since the the price Our to of share disappointment back plan with that on performance our number track? is stock going have get

Yes.

what down looking focus We can don't factors frankly, control. on get of it's customers. management short-term we ensure sure focus obviously, is those we disillusioned can we what's technology the macroeconomic the when think by building right? to cases or course, And I just on making we this important distracted between creating broadly, crypto and or for that not So what We control? of compelling staying our great and We downturn. on our our use don't crypto thinking. don't even Well, control distinguish we our do can we're on customers. So market control in to at more make really products the and forefront closely available markets can in to in expense focus our control

So that cycle. believe make situated tools work in us I products the new going innovate develop share capture we're is disproportionate today and doing really to up well the and to next to

centers to how Several faster. other question and lowering particularly innovating Coinbase have next shareholders moving share, Emilie? competition. are intends exchanges to differentiate be asked perceived on Our gaining compete, fees as to their be and and seem

the Yes. question. Thanks for

unpack a Let's bit. that

trading still So trading And that in that by users it counterparties high-volume tend derivatives aren't moving and core XXXX. Celsius and there some of of in periods makers didn't And We we is finally, during notably such of this we in the yet we to market hibernate passive the as that we products Luna is that to is above those note We crypto no was similar lot believe XXXX. QX, to are there because revenue exposure amount activity transact and less. a explanation saw of had U.S. with comfortably true hanging that also we're XAC, events And our should that core we our that robust choosing like transact, currently to other customers in thanks assets who lows investing was we ways, relating crypto downturn And and participate didn't traders that per and happy and are of Voyager are is is much larger offshore for that QX behavior new and and what around diversification in. MTU to process. these XXXX a U.S. and retail in that in seek to, it's the asset that episodic There's overseas customers our found as volume less support for observed management uncertainty. staking. began with engaging note average still then available last that another driven important risk listing

spending focused way talking expansion. and new we're actually move moving to to the Brian countries, that that's time trip share international conversation about committed we we is overweight safe That's the for focusing the over innovation that Coin so a why is the derivatives including through we're live And Now market share the on we on made our regaining customers, forward though, in offering them, reason the and D.C. is but way cycles are on in U.S. compliance and we Longer XXX-plus U.S. was the our that. compliant and and in term, continued just are

Can see engage crypto customer between I think here, that makers should I've also very just customers terms in thinking the Emilie? cohorts behavior and And in been question. do about about we talk part that institutional of jump way is it of the fee as customers, we different retail new Prime. our the are many to high-frequency our traders market and Coinbase beginning in I

the platform. on customers. and card do they're we you They our and range staking things of Coinbase to generates on breadth revenue our grade and retail because products safe, trust DApp increasing use, from your with to them an and assets integrated So activities today, platform listeners of Coinbase give our can most as in many a our like know, spending of crypto NFTs, wallet, our of access to easy

seen other being product. side not premium that that We the are for a differentiated that pay not a We okay seen like fee feel we have need have to services change are willing to service. and model. on with And we've premium fee compression versus the date, customers to and retail

fee will to fees doing One have we fees. is like, They ways, term, so we a long continue at which pricing shift to when no diversified why product, experimenting we're giving services and we're in in revenue, but product a spread, we in where to with with a bundling QX. will the with experience. over net subscription that to a services term. the compression happy together started see better pay subscription build and market But the increasing trading Coinbase fee volumes of that's still products gears short our be and monetize that where makers, an platform. client is for highest This this a I to other become with do set compression, XX% a But on look is example, group believe In we're and be trade of no our think there our there all segment these percentage fact, users the opportunity the

in So group And competition talk as lowest we our shareholder competitors' see for We to on based candidly this this group, on receiving on institutional But that of are volume-based breadth is more this is Coinbase retail more But products who's we tiers market about aggressively customer offer. the customer fees time while an they're maker something coming Prime that that at letter. be pricing. and already later. increasing a our of talk important this lower gain compete products the the And compete is services platform. over in we and that for and looking volume. building will to we would we and fee that to extensively can that focused about we

Yes.

thing main add versus is about think terms things. it in three I think differentiating only of I here the competitors, I would as

to down we cybersecurity, the the everything first our preventing It do, brand, products that is to customer not going -- regulation. compliance, in pack The comes sketchy. comes customers to down I and lending And what support, that option being that into down comes industry. to we're all for think, doing say great

pillar the good most a I there. is being think option trusted So first

use. of is thing around ease second The

want products. we billion So new eventually X the try use. economy everybody often this too accessing to crypto to people way to to And have make again, our We world. in still difficult crypto is through accessible

building industry I product we're think leading so And if the an one-stop And simpler integrated and will. product sort simpler. and of suite you we're lastly, shop, our there making continually

new there. trivial already Coinbase somewhere, methods, to not may you if So and to to do have have store payment a your it's set to you account, has you up balances somebody crypto your get a may have account connect KYC,

to So over we these you Coinbase have a switch it of or products just once and make account, any easy services. try

place, creating that's So one or an trading like you in kind any whether borrowing or activity want of paying crypto or something you get NFT. or staking can

time. over us for differentiator powerful very a is shop one-stop so And

All right.

is. we're revenues prices? question are What asset from tangible to Alesia? linked our the to and next taking other Our trading revenue crypto steps diversify

with, want I first, Sure. we're crypto a company. start to

growth revenues likely But of so is us. QX also in our ago, hard letter, markets; diversify years our broad shared the invest started we're has our is our which A to of from see with product working from we're these all and driven driver XX% correlation the in income we from underlying some our are X% the activities an revenues this revenues. coin. services, stable to that significant from products, in will XXXX. that USDC to platform reduce this crypto up in. So and to area in We're for shareholder our in coming in a up have couple to as even always as and year-over-year volatility starting however, we of subscription we growth down This adoption and XX% big see also invest market, now mix net stacking interest continuing

shareholder some that areas streams what So if time. the add our of see we'll products or that developer we outlined revenue product think actions our we're with in in you over at within Coinbase diversified Cloud look the WebX, we making terms of to you continue letter,

particularly for Brian? bit wallet Coinbase looking to we into is question next and the it Our of our platform. if strategy on integrate have clarity core plans a

Yes.

So talk Wallet. bit Coinbase I'm about a to happy

their own we've strong on don't behalf. of lets And you self-custodial is for of our those app Wallet us apps. For app, custodial store instead seen our it self-custodial assets both having and customer that who crypto users store demand it meaning know, their

so And the these across broad get segments different of want both of types of coverage for functionality. who us user to important kind it's

smart just a that. is or are latest of development, us is think a funds. want a whether broadly a on in DeFi few customers people growth. use interacting to onboard Wallet really NFTs what's called to allows or software which with WebX, reasons since important now the to area for more area it their own regard briefly allows being us contracts in that of strategically. And touch the One accessing to big to exciting is or Coinbase access development the will crypto, we be that's countries storing treated that world. it really in different like It's product So And customers also our many around customers

own a users builders in personal So storing it's decentralized a handful version and monetize is and by data WebX users' often orchestrated their but owned creating of that tokens, data, community-governed by is more private and way, the different by these a today's Internet. -- is crypto more something access Internet generation next and companies largely that run their of being it's that centralized the

startups we're and lot venture seeing dollars building and companies of So apps. new a entrepreneurs also and

called are DApps, these WebX. decentralized Sometimes or in apps,

really important Wallet And all this so people for way to functionality. of is access emerging Coinbase a

crypto that our primary strategy doing often fact, while an In account the they're important for to people that we way in be it now WebX. financial with economy and say is is the

mentioned over quarters. I we've to remarks, the opening number last improvements of few Wallet in my app a As made the

across different For Layer instance, more bridges now different seven utilize Xs, change without Coinbase to wallets. or blockchains support all Wallet enabling and we in apps users than multiple of this

new We redesigned also really on a seeing customer in Wallet and from reviews, great responses online. rave tech totally stack that QX, we're

now we chatter. the of positive wallet the that and it's believe self-custodial on a seeing we're So lot best market,

our The use distribution, platform. people prefer to core integrate have a and installed. asked have about Wallet core apps to really Coinbase a second our of the lot app. has app part of this They of we will course, how lot of And two question want to retail don't custodial into

to in wallet And a long Coinbase have available that had in now new place. we functionality spent or our this requirements that to this, called computation, technical app. we have we MPC, great a inside uses enable which make it is to And what's time we bring investing the retail call main the app. much details, Wallet of that worked same the into getting our that that's too we're in we've that, stringent wallet-type met really security cyber doing hard so without all into we multiparty technology it But DApp about core a It some functionality. of

where We but now like XXX% with mentioned And Wallet they just our to applications, have different that to people DeFi, able be all enabling third-party do them we of these would can I these marketplace app, brought WebX, customers. NFTs seamlessly. earlier, the the it of things interface to try in it's

as matter So the much technical don't the customer as details experience.

us moving to empowering really able our of we're and functionality. been excited provide customers It's space. about in quickly, that And to some this attract customers. I'm to really keep this helping we've think glad so retain I these new going it's experiences more and more

Brian. Okay. Great. Thanks,

let's switch now the please. and back So go our live questions from that, to Sarah, gears with analysts,

you. Thank

comes MoffettNathanson. question Your Lisa Please from with Ellis go ahead.

my the thanks to where Good Page for bridge wanted thought on actually taking the of super for the That was is helpful. I with question. Thanks This of for you my it's XX Coinbase? $XXX cash that's on decrease about in and of one, burn Maybe at kind quarter, that's you sort available. the Alesia, million bridge afternoon and shareholder this I question. letter of additional disclosures. go shows cash the how think in down direction

than to think of exact I but this math, have that. slightly similar do back the exact sort know QX, at don't looking it's I I because number or higher

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the question, Lisa. Thanks for

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question of with Your Worthington Please from line the ahead. JPMorgan. go Ken next comes

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Stephen from with Cowen. Your of comes next line go the Please Glagola question ahead.

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question. the for Thanks

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question next Ryan of Your JMP Securities. from Please comes line the Devin with ahead. go

of just on last bit little a question. a follow-up Maybe that of line

prices, months. over if maybe slightly crypto past look at they're we So up the

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hindsight. to And so it's a until change hard we see directory very true it truly it's see in if in

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one for more have we question, Sara, please. time

Sachs. from Goldman Our Will of final Nance with line go the question will come Please ahead.

question. for Good evening. Thanks taking the

revenue. on in shareholders question then there Stock-based over time? about of you stock-based exercise thinking a half I And just wondering, grants And anything you're dilution trying the one, high appreciate on from that coming are about business -- more limiting Just stock-based broadly, guys more how manage just at are nuanced over that thinking there things to efficiently. comments comp. founder two, the in comps all experience prices? or is non-cash how the comp running

for question. Sure. Thanks that

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and dilution Our grow manage goal profits effectively. is and to price grow stock

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next with on Great. we our look and forward quarter. you us, Thank joining to again you for speaking call

call. This today's concludes

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