Coinbase Global (COIN) 21 Feb 232022 Q4 Earnings call transcript

Good afternoon. My name is Paula, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase Fourth Quarter and Full Year 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator

President, may Vice your Relations, Investor Gupta, begin you conference. Anil

Coinbase and and welcome afternoon, fourth to call. Good earnings the quarter 'XX full year

published CEO; letter, Legal regulatory all to questions our today's Armstrong, website be hope top on COO; on you've are Paul may which also Haas, Emily Grewal, read earlier joining mind, and I Chief Alesia because me opportunity and is Relations Choi, our had and Joining CFO; was the of shareholder President Officer, call Investor Co-Founder today. Brian today.

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

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

We And are our that, addition using once will enable questions we in live taking be some to research to post analysts. Technologies our from to shareholders again questions. Safe

turn So opening comments. Brian with that, it and I'll to over Alesia for

Anil. Thanks,

on themes So I in to want three touch my opening comments.

in future. reducing to operate OpEx the our more one first we're better be going is generate and how The EBITDA about to efficiently

about third crypto we to this going is are is theme the be regulatory And second about where cycle. theme The current environment. going to be the in

generate breakeven has and evolving EBITDA along that. in was market our When OpEx. but so we're to Coinbase with the to all adjusted now market reductions public, changed, let's So our cycles, start We're business operate goal roughly at crypto with a conditions. goal evolving the with across in went

our hard This of year to XX% June. We've by head we reduced worked we number follows count from also in a of of we're stock-based policy amount XX%. January, dilution In last and across did further dimensions. taking the compensation adjusted reduce head the count reduction compensation

since forward. XXXX X%. dilution going going ensure These to dilution total Our in been April that has we changes manage about public continue will of

with the changes is parting us more investing never in efficient be very space. better weather easy, with think Now as so and we us in a and sheet leader and can compensation crypto I healthy to colleagues but be it to future are helping company the ways a downturn result, this this balance positions a the continue global

really grew think I XXXX crypto of all-weather subscription see also to crypto, predictable paying $XXX a services this that major more was an in strategy revenue shows streams. course, really our of glad that and to becoming downturn our revenue to is off XXXX. million from was XXXX. I with XX% company in year-over-year This And

good So about we're me course. next, us that. like of the Coinbase. Coinbase, failures, for and I in it I will for I currently from and really bad this really those that compliance ultimately crypto, believe we've is which believe, but the the to regulatory increased company companies trust increased of headlines beneficiaries. agree activity don't crypto the regulatory space, environment a that It's and beginning, be the the FTX But prioritize assume look and want be clear, that thing to easy crypto talk with In scrutiny, I very let seen many is other regulatory wake benefit in. will at and There's of legitimate space

even when grow do would I because regulators be XX to I going that if back corners. the that be And company. to a I try come right were fast more there years rules. started the come it to ago. do really that founding company, to was to even down We might would Coinbase compliance-focused way They this going act. of cut knew going always to don't than This the decided goes inevitably crashing companies but But really difficult. And more things was it's and quickly they don't when act easier because follow you really quickly, in have eventually were to move the they

many very to way, put place actually proactively do hard coming. and greater be company regulatory a XX before things game clarity years. that the required, built the were they different We controls in playing this appropriate would In long-term the cases, last over even anticipating decided we

in and we And changing. and probably States So I at bit legislation positioned well really point, we're new of environment are clarity need talk United that more in regulation, need around we some this type I'll about but little later. a think how things the

third, cycle. crypto about So talk we let's in where this are

at now. means exuberance time, despair. that of in important signal from it's think Coinbase. an to opportunity are there's The those have for headlines. it's focused And negative and always look years, one indicators crypto to out Neither one but separate is the tends I narrative also noise Now despair we're given irrational in the flip like any fundamental two that or try space builders and in either at every the the true this who phases right we

and over you compare take ago, in years XXXX now just the have of least that if at cycle. you kind prior two to to where So or we are look

or last what look in the just You last can't the at year quarter. happened

since crypto who great a is of the XX% the going. XXXX has number work think, So future price price The doubled January average to the I of compared where that's predictor, software in and XXXX. in is bitcoin in XXXX, up of developers

crypto totally media started Twitter a wallet, things are different, That's brands need who all WebX wallet. and other are customers Nike, Coinbase and who've Starbucks, Instagram, are comes These services of where technology, number integrating their Reddit. The and to integrating products, like major into use social crypto Adidas, Coca-Cola and going a platforms those in.

just regulatory U.S., Even Brazil financial MiCA. is the positive the in the comprehensive Hong long legislation. UK, steps in making to are eventually. with major EU hub get We the in comprehensive I legislation the WebX. a way toward about that the crypto seen come get even Japan, vying We've crypto be every leader a side. U.S. Outside Kong, even And all very we'll think on passed

we to regulatory freedom in that in in this course, people technology, So be more billion industry. more believe the this we've increase And the incredibly that ultimately, net at this short, size. improving cases our driving we we so more beneficiary bullish technology, of can on efficiently can We crypto, use economic of in remain We're will got operating increased world. clarity. a driving or from this keep and and utility more products, benefit new

to talk Alesia about that, let our with it results. me financial So over to turn

Brian. Thanks,

First, QX our to I'm results. going recap

Our growth by net increased in quarter-over-quarter $XXX fourth quarter subscription revenue strong and revenues. services This was X% to our driven million.

transaction of we volume revenue terms In first, market share. trading gained

market, trading quarter-over-quarter. a did volume X% Our quarter-over-quarter, but decline crypto volume which decline total saw it the XX% spot outperformed

our QX. our the program $XXX a million. growth contrast, $XXX grew result, in rates total by in million. XX% the as quarter-over-quarter to in largely declined transaction XX% driven USTC reported to was revenue participation by As In This interest services subscription

increase we consistent total with outlook expenses was in to Our factors operating three billion, X% increased that There spend. which are provided. this the quarter-over-quarter contributed $X.X slight to

spend. we marketing higher had First, seasonal

certain third, quarter-over-quarter. of had Second, million awards would York a cost New a we have SEC the this settlement saw timing increased And X% DFS. settlement, we been down the Absent about $XX expenses with quarter-over-quarter.

XXXX. look zoom now at year I the and want of full out to

February QX, $XXX QX. in negative and was for our year in impact revenue improved lower the million of EBITDA recurring guardrail ago. note, to in adjusted Our lost well a were DFS quarter-over-quarter. this want EBITDA was XXXX, expenses, $XXX negative excluding This I million XXXX quarter-over-quarter, included of slightly about the million we've adjusted settlement, while lower our $XXX provided within in the of

primary was reason exchange in realized QX. lower was QX not EBITDA was a loss the fully experienced QX until foreign due we to that in that So

markets shift Crypto the is market February year-to-date to into to volatility outlook. our XX% cap now QX gears time up compared QX. XX. want improved over higher so X% I towards period. as far is Crypto same Crypto have through

January we of in generated a $XXX million As transaction revenue result, XXXX.

remain cannot this not to extrapolate They again. of all have evolved dimensions between quickly last to and caution And year's keep multiple they enough. evolve the across can these investors in the need in experience results dynamics We QX forward. mindful and we of We mind I industry QX, flux. how evolve. underscore quickly are to potential markets

we've updated our for that spirit, outlook XXXX. In approach

to outlook. most Our $XXX and we expenses. business, With outlook we providing services million. what X believe subscription and services QX be subscription revenue quarter between we're now And elements stable million reflecting expect are of revenue and our $XXX is the specifically that, and of predictable

management market fit, team we're we That to and product cost with to operating we're a back scrappier getting more are As approach and Brian we're taking small mentioned, focused discipline. sizes. our rigorously investments, on assessing means

anticipate million will and represents totaling million. results. marketing XX% $XXX million together, sales to be categories, When in and we OpEx $XXX that these reduction QX, and between the a more $XX development technology QX and For be general than this administrative will and $XX compared and expenses, And QX between reported million.

you the recurring $XX reduced quarter-over-quarter. QX, expenses XX% have by settlement from we If million than back out more

million stock-based QX. outlook compensation stock-based $XXX This expense expense QX. compensation of of to that in Embedded of is compares $XXX expectation an million in in

down EBITDA brought million XXXX full to that cost our quarter-over-quarter. position so. reduction. includes absolute expenses than adjusted our efforts do million us approximately believe goal January in Overall, And reduction outlook with dollar more we headcount $XXX our for we've to terms XXXX. restructuring improve for versus So by is year our $XXX Separately, associated

our QX people. is to don't look to be which around which drivers, our expect compared we levels meaningfully increase X,XXX As expense we count, our largest to forward, one we of head anticipate

that to want updates going some right, go in see we context around give Q&A, we All you're XX-K to this some before to our afternoon. briefly filed I

distress guidance that like issued situations for FTX, are public crypto of Following disclosures which at included crypto companies market participants. in on new December has events financial like the SEC and failures expected certain the other ours companies XXXX, of a

disclosed some quarter. we guidance, outlined the we While much was in make about disclosures additional already did this

counterparty expanded discussion Coinbase, have could risk interconnectedness activities, impacted will XXXX similar see impact of with the you events and our how we have participants. expanded of other how the we've an So lending our company, disclosures market events

These updates response to our full the The website. MD&A and direct Accordingly, you'll be on found see can in guidance. letter new section, risk business on factors. the are

So with that, to Anil? I think we questions. can turn

Okay. Thank you, both.

questions, questions the themes. same that, to . might as are we determined with the combine and turn the touch shares, shareholder number by taking on and we we'll of most that So uploaded questions

management controls, about, perhaps The offer to with business, products an X regulatory has wait on and new question risk products offshore to they operating while first clarity U.S.? is Coinbase additional investors Big the audits international such in considered

the for question. Thanks

access world our is freedom to better in So mission by the to crypto. increase economic enabling

So be to very as expansion to our have is global to we core a how part operate. company. mission, such, continue of fulfill international we to a be going And

in had we quarter, past the a In launch Australia.

We we've and have in MiCA the launch in positive an with long-awaited by regulatory the And EU encouraged been very upcoming UK's the Brazil. developments consultation.

continuing UK to important . invest So us They're business. and really Europe. you of see expect parts the can our in to

going coverage. offering jurisdictions you way will risk compliant products with referenced, our us good always management on focused safe, We're lean audit. as working we maximize a to And into to in with, and help be sound global

focus international but area today, beyond. here continues to announce to for a us and be in nothing there's XXXX So

Thanks, Emilie.

operating during to XXXX operating at Coinbase trading times Alesia? a volumes question, times? updating and of like Next breakeven such from P&L at considered or the in XXXX target its those has during year-to-date profitability loss

had preview Brian's the like a questions feel comments. I opening into

we future. in the So building not changed our can are But approach Brian a comments, is as overnight. and we yeah, this his opening change we make have shared towards

to all giving we to cycle, conditions, over generate be roughly say is time, aspire Coinbase over company EBITDA used are breakeven but very an we say all-weather which would market focused now in we a company. to a So on can that

compensation, adjusted improve to or coming work to build continue I absolute our EBITDA, year-over-year. volatility. going Specifically, in while as stock-based EBITDA to dollar performance is focus for in And And the comments, we're XXXX, our shared SBC, our streams with adjusted my is goal improving down, too. our terms on opening is less revenue to

expense performance, focused think stage will overall performance. So we that long-term on and the are set for we financial

expand Coinbase the with platforms will compete like Next question, stocks Brian? to Robinhood?

take that one. I Yeah, can

we're We don't still necessarily solution So a people make no. space. the there. that the traditional space. feel answer leader our could want today, And short in opportunities securities we of know lot of crypto, how trade the is We so There's in I best a dimension. there's in on go are sure differentiated be to WebX number places the that would

to for can trade be if that tokenize or pretty have wrap is think, exception trading, to that additional could share of, global think traditional There I or fractions them a and for found making for customers an securities, interesting, native, that easily which instance, some us. way unlock more I is more we It could our XX/X more they capital. people access could a functionality, to of crypto would

to we'd several like U.S. working the it that hospitable with to but We But change. in ago, of make to right broker-dealer right work acquired that now SEC the type we're years something currently regulatory dormant the not product. to is it's a And actually license active. environment now. It's

that I just that the really to make I think like to in think term. that, short allow something and register people securities, wrap and that in I something simple also interesting it pretty go happen traditional cryptosecurities, future. don't we'd But could us -- be would pursue will the that like and for could

So time. towards work it's something have to over we'll

crypto compete question, other users us Next platforms purchase trading allow that with line Coinbase fees? does to Alesia? to how without

for Thanks question. the

to that products zero out true comment I start there no So just are fee there. a want with

really our Some monetize but no not post that monetize via on fees to where transparent back fee the end zero like the do but platforms. Coinbase others the there are users, fees we are

a of crypto today from assets trusting They are revenue they safe our products are and retail most and an transaction engage use, integrated platform and easy our we with because generate to activities. range base. them do customer So giving our of we're to

So your you you participate Coinbase stake, you crypto can on can can a spend card. and

And are things. a do this customers product different that willing many premium pay to can believe You is our for. we

just have also we trade can product, fees. Coinbase subscription without But a for where One, you

experimenting definitely different models to and offer So to we services our are ways with different our customers. monetization

our compress to but long-term, As offering. placed on are And in we to approach, see due is pay to we fees after think value for trusted that we the that XXXX, over before, and will more to compliant there that willing said we believe have yet crypto. people a platform, regulated commoditization, premium coming

crypto Coinbase is regulation? lawmakers alongside shape working Next to question, Brian? U.S. how

Yeah.

D.C. week, spending I'd of I've been top was And is this priority for lot I my last So say a in time just year. actually. there policy

crypto last relevant when I So met was we are there just that say, on comprehensive a senators support, week, with of different getting a legislation for there bipartisan lot crypto There's would out actually pass. working bills. of number I

economic of et a this that all consumer have And lot recognition cetera. growth, there's of built that a America. important need national desire here of just for wake excitement the it's And technology. reasons: we a in the they stronger also kinds to There's There's FTX, people potential of in about feel lot for of protections. this security,

So see very to that. pleased was I

a legislation. at with, has I of the bit already that I they in cetera, U.S. take bill. realize that moving others the kind The they looking and et think is UK, now. what also They're seeing put right are Singapore, behind EU little their and spoke on folks dimension like comprehensive this passed the can crypto in that

them even what's and more more so I million asking as activate very them. spending actually about crypto important States the But time is they're used or many -- in think XX who United we passionate I'm people can that to have in go that of So roughly D.C. than crypto, and the

encouraging to and built contact be with protection America we say consumer to about innovation want it's so strong and industry the asking them potential. in this to And preserving representatives them

I clear in used and this pretty becoming So United in by need a make be of election a that to to it's we think the a going it in the one think, -- lobby in issue, powerful big households is now States, upcoming really constituent. a XXXX, Crypto that I lot let's instance, five and say, for voters. is for

organize been So the happen we're for here giving candidates even right we We've come do in course, have and in about users crypto can this customers policy different helping to scores actually Coinbase app one part just our The by issues them. our of information company whole them. out of represent to to together the really industry going and space. all there. But that make is --

advocates. more We've hired So that there's lots crypto policy incredible key donating team. We're doing. to an we're

SEC, sent on Shirzad, we today a wrote be sort of out petition Faryar Sachs Goldman various should of the areas clarity of Head with coleading Policy, from regulated. many detailed groups. in law how the where he and trade We're the to that clear Our really came requesting pointing policy. working actually crypto We it's regulation not was more where

page I go We on to have a our public which website, policy encourage people check out.

a do lot can a And there's company. we think So I major for myself the here. and focus it's

you anything Actually, Chief Legal Officer, Paul, want to add here? do our

Coinbase, engagement. Yeah. regulators to ultimately and have to we solutions the Happy compliance with are economy. we and Brian. develop working plus to of put a grow that sensible, them that committed XX-year regulatory to, help consumers record protect first crypto remain And

Regulators constant investors to give in but, public those policymakers should rule-making course, and of regulators as in of the standard consumers agenda D.C. conversation that follow to the and, as well, particularly just not conversations, with and In course, is We are the our clarity, will well. course all very these of undertake clear. industry

in of economy, exist today. our laws in just small people digital a is whether It's or the sneakers buy the have are able and number line a not or Securities lines The to order to or about everything crypto in tomorrow low law the of it be this, right. a crypto, crypto. That's value trade. security. the baseball we not that shouldn't get as bottom future. security doesn't not turn assets everything And like or That's why elite it's only to these into cards in just

entire And the existing petition the modern SEC that area we we so could that rule-making same July July, comprehensive provide into clarity suggest in outline the issues XXXX, industry. filed in to the a assets. SEC engage And digital securities in with in last with spirit, for each existing or which should order rule-making for an and the that in applying

SEC and is We're the stop too that going until And It's very that will forward. not we're do late. not to importantly, engaging appropriate hopeful path others the rule-making recognize they so.

point, final standard One answers just as proposed safeguarding that get for public to crypto the Coinbase. in We custodians process as to these follow qualified recently, is notice the SEC of a issued see a a signal that SEC and willing such order recognizes right. rule-making assets rule with

Great. Thanks.

company question, valuation there Next if load reduce buybacks low are to initiate becomes overall any the plans enough. stock or debt Alesia?

question. the for Thanks

So what our I would constantly evaluate most is we with accretive share capital. way the you that allocate to

up So company our to can the period P&L ability as a options is to to something being at, us, where EBITDA focus available today, a shift we've maximizing and an through our have conservation we cash generate But the transition on in opportunity navigate we maximizing to we P&L we stable have has volatility that from about. and our down market. looked talked in that more this

business, with at buyback around the this to buyback debt don't share only have right a time use stock program. we while So we or

not we means and that don't of behalf a while formal net the pay program, we have employees that market. taxes shares the is that do on awards buyback end those out we point equity settle What our in do employees. would generally to up I

to effectively result, went million approach. we X bought shares we've over just due this So as back a since public,

of So into put effect market. reducing amount it this stock dilution buyback, shares that of of outstanding a has our while reform and reducing the we've the

funds cracked service what next can the their is, Paul? differentiates as from down Our with And you a being Coinbase will SEC, assurances Kraken by a theirs? affected? question staking service investors as not what staking give that be upon

by available stake Kraken. products assets Coinbase's news. that fundamentally to staking the offer differences The yield and Staking our on rewards. not continues and are that products this The we the The they earn Coinbase affected different to customers continue action against matter. were reinforcement from so be described securities, at products in are staking are not Coinbase to

Coinbase, including of customers always the highlight customer them, few remain of all Just one their we assets, assets and tokens a times, there. to and to of ownership title first all At hold to foremost, course, retain tokens. on And one. user

that financials are to They're On difference important is the and we have in of that just returns. decide And any transparent with at to tethered Coinbase, because, public the protocols customers health our fully not publicly center. realities. traded Coinbase network disclosed Another commissions to is determined all. We pay into company returns are financials. have right Coinbase simply fees a can't take our our audited customers course, deep critically, insights a by our

assets The that critical has that its is we disclosures. to such to what disclosed they're in Coinbase agreement. when Coinbase bottom have And user happens our users, do retail always line access information staked. staking customers as proper for

Rules, in making regulator order would distinctions expects. very public have to the real federal we what in provide a a And understand complaints think court shouldn't to clarity. parse these clear

recover value initial from the the is what going its do to is, to IPO? stock question of Coinbase next Our Emilie?

I'll long-term on generating take value. focused Coinbase that, yeah. is

category isn't market. has player time. crypto still leaders tech market will or the come are economic over past This in specific. Coinbase high-growth like of We reset all years, a much And over for future a as regulated we've other our such, the And in new leading like it companies, potential year. nascent and much experienced

for one, management a absolute so our best efficiency; growth on, outcome and regulatory users. investing value particular, our That landing products for product three, focusing two, in our positive cost crypto and and said, the core we that on in laser-focused we offer are services; driving shareholder ecosystem are positive and, energy the users and

cryptocurrency go can big feel in you that Brian? making role Coinbase do mainstream? question, a Next play

is people goals a X of which want freedom, get have would were that me starting our to of to one that a is crypto economic tell mean, economic real we on Coinbase to globally, scale increase billion we mission global freedom. impact I absolutely. around Yeah, to the

blockchains So to we We it I areas. think happen a big important in it's a to I across margin, Coinbase more of And And many be one happening to a and mean, been to great happens I scalable. There's -- number work scalability. there's need the dimension. get the lot a there's play of that where on help important couple different is role areas but on that. has think developer able teams have doing to going of that.

lower they stable want terms of just Also, through it fees. have don't and with think it They I don't paid. can sort living, trying to use. works can benefit They less, Coinbase know a want a it, can to but and things works, understand really like earn they they how of transfer in how just even underneath, intuitive. switch. crypto they to cetera, to and those here make easy we currency, Many access a usability, to from just to role but play people funds make many et want has people to so get want easier they light electricity

role lastly, advocacy, And regulatory on think play have policy. just important environment, here I education, then to an we around the

to try mark and can X billion we lot help user that to beyond. get to a crypto do there's So

overall, when what And your increase do share? loss? what the connection plan burn, is What your Coinbase reduce market One, developing next question Last in to is cumulative Coinbase NFT? to new before what's analysts, Two, NFT. time Emilie? differently Okay. you it will platforms? to we turn your over plan the

adjacencies XX% core, strategic opportunities. venture XX% So we to XX-XX-XX, XX% allocate our to resources, and

to best way. initiative And a looking in the serve XX% were always of to customers expand We our that of products are NFTs venture portfolio example an our in bucket.

medium long-term continue opportunities And to we here. see and

we've and any So NFT but Starbucks, team Meta, we're we're There's Hauser a social means. throwing in of by including we're Bush. more the is NFT opportunities, got who of lean are XXX product a it experimenting on a Nike lot companies very that not towel customer And Fortune with -- creating a now, experience. proud

continue a do, we resources have but of We limited work invest to lot want to to there.

in do in to the a and way indicated letter, we expanded we're more investment so couple there of and possible. out something new was terms in we're efficient lean, but just of efficient with experimental a that just and has example most an to get shareholder products, more rigorous it unproven that something approach as way smaller in of in and operationally team we back investments, a to very going way that So sizes much to do a the in things bigger. started be USTC an folks getting taking of

Okay.

with Paul, the from that, live research questions let's take some So switch analysts.

Thank you.

from Your first Oppenheimer. comes of question Owen Lau

taking Thank you for questions. my

about question So a expansion. have I international

customers. So lot yesterday, trading Hong SFC retail consultation a a to propose of digital assets assets Kong put out for virtual paper on trading platform. They

related quick the topic. two questions here have to I So

one Coinbase regime? approach this how is, license will this Coinbase The first for or will apply

wallets. on no trust stored assets knowledge, point a this? many operate the with in Coinbase money The on that be second and platform wholly-owned is world can meet be this to has to Can virtual your high the based And hot of compliant bar? in whole more the X% client client a are exchanges than Thank requirement you. seems how subsidiary

Yeah. example you is I entity financial and Paul this or don't Coinbase pleasantly good want an just great regulatory hubs date. of think that say to what I that around Kong see as progress of general But this detail currently in anything which detailed Hong if I Kong, trend. anybody have do the done towards making Hong those, We'd exciting surprised is the a to are add have really look this see a of been know, clarity. is you that clarity in we -- that country else, don't I've today one question. mentioned like currently there in those it's a in to I we really have don't to we've met requirements, to would general, is -- mean so but world, of anything?

I add of platform majority is would thing on holding do a storage. the of cold our Other funds practice vast in have we

very one mechanisms wallet the And a assets has in a number which so place for is risk, a of years we to have hot in think cyber do requirements. Coinbase also that subject of operated to now. of or keep TrustCo small amount I

And our we to business definitely that in chose lean parts we if of build on market. there's could that so

strategy, on don't we outlined focused we regulatory building having countries you At our provided, But international announcements to time, broad markets our structure, go in that on in in. have adding currently to years, portfolio. us. go attractive previous like deep. point conditions have we're clear broad We're Our any as a become this additional and we in the countries

time at that as to our can country a indicator that list, adding were we So at the we a comply go ability that into positive we our of assess countries and standards. look would to with new those

much. you Thank very it. Got

comes Your line the next of Ryan Devin question Securities. of from JMP

in this Devin. Hi, I wanted actually Michael standing a is for ask question. Falco, to quick

to then the market setting year You XXXX. terms XXXX highlighted to generate your that positioning And in EBITDA goal EBITDA in your versus all improve company sights adjusted full dollar absolute you're for conditions. is on adjusted

expense XX%-plus So reasonable a it the believe you seems current goal. this after is reduction, like

of side that revenue that? what's revenue the of that make on the kind underpinning threshold scenarios what revenue the achievable? are And the curious Just equation, would goal

question. Great

shared control. we near-term outlook our things on as focusing So in that we're we really outlook, our

difficulty] and quarter-to-date $XXX in that we of see transaction down. revenue could the a has could of volatile. of lot which we XX% services be continue revenues, be volatility to market and cap be it million believe results seen also QX was be could in $XXX million the QX. We've over [technical our volatility crypto healthy we It to converts our subscription up, static and growth reported So It as revenue, in saw transaction QX off year. up to

We are preparing more we grow for and against expense base. services that this range, moderate prepared are to and subscription

ensure the setting EBITDA we're improve we scenarios because this for we're year-over-year. are hoping we And for positive goal, that this worst in best, that point There that could year. to and be at what time. is preparing EBITDA the But is

the through points we data as get We as will year. go to continue update more we you

thank you. Great,

comes Your Kenneth question of Securities. of line the next JPMorgan from Worthington

historically leap The industry question. And for on Hi, had with number robust for ecosystem. has of innovation the DeFi and the crypto technology. of Thanks for big popularity cases NFTs, forward crypto the at developers, the continues large in investor use a the good Maybe for pace a and Brian, afternoon. development has in businesses Coinbase example. been and taking based

And for XXXX are there cases excite on or as DeFi XXXX, of the particularly use broadly, As what crypto? and next see to the NFTs that you leg you use level forward do or in cases look big you? maybe developments

Yeah. Well, okay.

to just I future, a M&A when predict influences So on to front. it little careful trying the the be if have you're especially anything

you're here. keep pretty let correct. broad But my comments So me just

the We investors been in have space.

I industry. to and think this to big a we other companies, trend build big And recognize but that own of going the we're also going also beginning products. We're going is we're our to invest. buy

and And so build, three, we do all invest. buy

We is It that, looking excited cycles. it I services, identity down popular which new that types beginnings exciting, financial got forward, areas You of were new of platform, but and app allows prior type of a of exciting. money the mentioned allows couple a in and crypto to think that like also right? move A of some decentralized of just things new or form of beyond just kind about, DeFi areas we're NFTs. had these

a where to then you identities by decentralized networks. you if between people social And identity it's can do and of to create the owned can tech social companies, kind those have and have things one have graph access of start their not like big own interesting decentralized information,

have rank you these or similar PageRank if with sort to associated different algorithm, pages Google the but identities, of each FICO Internet, will, of decentralized can decentralized You something score, you which like for on those have reputation reputation of kind the identities. a even could

one So that just in. among I'm that's interested area, many

space There look where focusing of on And that's time weekend, now. the time, a predictor I we at to engineers coming are the look in brightest even in what the this actually has really start-ups the if are out. you that generally a landscape they're you future. continued their of as think of good their try grow I down. And at think on young developers, free That in mentioned, to market are coming operating lot hacking

crypto measure, that by is so well. And quite doing

SEC? SEC you. SEC of in quickly continues with Okay. downside or the firms Paul, either Thank Gensler one say and for products is If to the registering to -- firm or products crypto wants just Chair I risk another the or to register that the can sneak crypto he SEC. with the What Coinbase

of in the S-X certainly complete SEC. registration individual regarding quite qualified listed a open being the federal the products with to extent were to an We're And publicly the is Coinbase we services securities services. familiar as course, and comments is required To securities Well, then, XXXX. with under seek foremost, registration where quite April available. and familiar company, with because, to and eager path registration is of Chair's registration Coinbase back a also that products and first laws. one appropriate is

the point it's not to has think to qualify path or as readily in services opened. least been securities fair open I products that that this and say time, easily for at or may registration at

to to that's to so in have continue the registration engage where eager an makes we're and pursue opportunity where be else. But proven dialogue we always to or with we do and sense, So a SEC conversations will anybody challenging. it

Great, thank you.

Your MoffettNathanson. comes SVB of from question next Ellis Lisa

now us. crypto be have for I Hi, policy terrific. highlighted lot there guess, question. A policy. here expect XXXX you times you more a that and taking There's follow-up to pieces Thanks I for significant a broadly, moving my -- know regulatory the on front, front, for year of several

things year? the or constitute would view, like next the top your win what a over four three in on are that regulatory the or policy overall, front So

Yeah. expectations I want little bit. temper Well, a to

new -- have passed, to United think for at stars any lot I time kind of gets and in a that government. States least it's of legislation happen, to the good reason, for align

don't over quite we're this good. pushing happening specifically are but I year, the going -- of that. think what know exactly to don't keep I chances that we on are So time, the chances

amongst around that audited, There's I had see consensus that making a I've That to bring just we is that folks back into legislation do a new looking one them we on with, were sure at. one. broad good simply to to spoken areas some funds and things want mean people practices would that could progress Congress, that were one win, there's front. perimeter I the number of stablecoin that regulatory think there. be and to the some best different a great are pretty generally And of

in could the how the even artwork to between use other security, else crypto likes I up was back SEC, and entirely sort which definition of stablecoin NFTs. something think we really is commodity, assets. And what's around an territory is one like to carve Howie the crypto computers how CFTC I of what's the the apply what or XXXXs, clarify created kind really and updated of existed, test, digital before think does the this a

that I would piece. be think another core

of and KYC trading great rid there's and other things I laundering program services number and anti-money traditional of best financial from procedures have practices apply a that a kind any of think And of get around rules that. again, there just, like wash the reasonable kind let's

probably the not. then that would the get of I or a fit think stuff we are then think And how So regulatory couple d in if about could could help. that things working, perimeter all we those DeFi

But so that get of the some first looked different and things are the all early be stablecoins probably could And these areas be ones at. looked to would at.

else or anything? want to anybody Paul add

rule-making July would be the in The commission the the on regulatory protecting some in is help need digital file as an and have input nnovateon rule-making frankly, hand, we more commission to everyone just in then We the so order consumers the an asset not clarity the opportunity between that than digital outlined answered questions like on only right anyone we an and last we interest a petition that for excellent and thing dozens to year, as back SEC XX that investors, to mentioned add, Coinbase with that Brian, earlier, provide space. bring with one promoting think balance the industry, be in and start initiate things requested, I can did dozens, but and achieve assets, to the to of believe would to other.

Your next from the Pete, Pete line open. your Citi. comes Christiansen is line question of of

you I'm me? sorry, can hear

hear we Yeah, can you.

Okay. All right.

much that Citi? quick how follow-up. modest you Then us primarily remind from think I -- is how just about Just a have

product. and in cut We we on you Pete, monetization, sorry, which out. a so but identify heard I'm question couldn't

Sorry.

the there? monetization about just going through If should integration Aladdin Is primarily how with from to that progressing us Citi? be think take and you could we

for clarifying you I'm Thank question. sorry. your

Aladdin. material don't integrated have we a So the around update

we Coinbase. and announced, that to the be have is monetization we in going the the also Aladdin on who back can As serve are now end, but customers in

by So hedge hopeful side crypto that of stocks, does or asset and we're what put bonds other tradable this managers. with is side funds assets

in asset it risk to crypto control commensurate could enables them And manage classes. that they operational have other to in

there's onto our us between agreement And going customers and products onboard and were then of also be, And trade BlackRock. so on platform. our Coinbase monetize commercial and services base on and those some to obviously, sort

time. provided this at haven't on We information public

finally, at would company. your the kind Brian, like on take of hear helpful. love the now then pulse And I That's to right

obviously, of been around. Now lot just volatility on a there's your second all restructuring,

on perhaps comment basically could the of employee of sense is under there, the your you engagement if these faring wondering Just people how pulse conditions?

on just touch Yeah, briefly. I can that

actually, good. overall pretty think engagement I is

We happen of see have who a really about people And they world. mission. lot to just passionate are want the the in this

And have the crypto company through but been gone have before. the cycles been people mean so at through fourth some of I've of through, before. them cycles crypto the one this I is many

it's Coin through and past they've first it going like was seen irrational people exuberance relatively share people a and by they've scary. people But something to the It's They're were when kept unfazed about their this, little it. time had maybe only building. who when

have up to wrong appreciate the of done. the there's people are realizing in come who the out it work space reason kind down to true time in are for some get and real some the to people people kind builders actually wash in of sometimes you less better, that ended Because was noise, what who cycles. I And down all the think cycle, the it's

So happens markets. innovation of a down best in lot actually the

you. Thank helpful. That's

Okay. Well, we're today's for out of call. time

to thank call. speaking us, and our forward we to for next you you So again on joining look

concludes you. today's Thank This call.

You disconnect. may now