Coinbase Global (COIN) 4 May 232023 Q1 Earnings call transcript

Good afternoon. My name is Christie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase First Quarter 2023 Earnings Call. All lines have been on mute to prevent any background noise. After speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

like Investor call Relations. now Gupta, to turn President, Vice to would over the Anil I

You begin may your conference.

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

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

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

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

once using our Technologies to Say shareholders again the platform questions. enable to post are We

will take we our questions live addition, In research analysts. from some

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

Thanks, Anil.

do helpful is Coinbase the out Coinbase most important and crypto to it's remind out everyone increase and that. economic to why to is think I And our So world. the exists think We always mission our at with zoom vision. mission freedom there in technology

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background, that areas with touch I most just on So want for QX. that two relevant are to

lean QX. business this this down again, by is And positive one a how adjusted we've innovation, even secondly, really be going in had how in to pace environment. more the first in efficiently going operate we've product of market about shifted The EBITDA down in about market, talk driving impressive to we're more operating a to

and So financial costs our marked let's Revenue down. operating point talk performance. about in QX turning efficiently. real a more were up was

call. our at better quarter-over-quarter. we adjusted last mentioned as of expenses in positive increased had total net decreased I EBITDA So in Coinbase we market XX% is We're The this positioned operating adjusted QX. while all generate to quarter-over-quarter, net conditions XX% revenue EBITDA result on earnings that

frankly, that a we we even goes had every with, a making, we're by in every data door to in We things investment work with the XX% close to expenses our more company. efficient look dollar vendor company. can parts in and how storage And we every reduction we ourselves technology quarter-over-quarter, top ask a cut headcount to every do And take utilization force out vendors the the at rebuilding five optimizing be January. do less of substantially and like We to in stack cloud. more conducted CPU from the reduced our costs

additional nimble footprint our We also in teams. real with more scrappier reduced took general, just estate approach achieve to savings. much a And

sheet of product. nimbler, we've balance incredible of team, with we an USD to And All to of a course, this, billion efficient resources. have this ship amount of continue still of more strong $X.X able been

here. topic second my that's So

talk continuing product the crypto to how space. Let's drive we've in innovation about been

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source could of revenue time. over subscription think I interesting be and a this really services

crypto their out launched which important next custody something there It we of offering. Base This which most wave the the unlock us Layer part for an really crypto ways important adoption. is a to any X our one is going Coinbase way our services. is of We called of important scale we And launched help be into integrate to solution blockchain. wallet-as-a-service, helps business

of stronger up is that one each So and in cycles, crypto, stronger through, the brands them. and best down including get most down the just to tend Coinbase, crypto in companies markets. obviously, Coinbase trusted fourth has emerged but through out, zooming This go the many world, cycle they we've the after been like

from stream a financial think in EBITDA We've and adjusted strong business really with we've trading resilient positive a here. we're in I So built position our really fees, diversified QX. away revenue

-- financial details financial With over to more turn me our in our that, Alesia let discuss results it detail. to

Thanks, Brian. our market XX% multiyear increased it's with increased trading and And Meanwhile, to in volume that crypto crypto lows. asset the X% the quarter-over-quarter. going quarter-over-quarter. note cap start volatility volatility at important I'm market quarter. crypto to Average remained asset conditions

made grew trading share trading volume and trade-off revenue I'll and on market in about the intentional by roughly in focus discounts, on overall quarter-over-quarter. an flat, a volume over Consumer institutional talk and line those U.S. And spot the market with we some to side, removing X% was minute.

revenue volumes our across this Against reached $XXX and a that first record net show we quarter. the really growth revenue, through XX% in We're the prime happy application we to volume backdrop, generated board. increase in trading quarter-over-quarter saw million

crypto Transaction revenue the crypto we million. Consumer to XX% where market. to Fiat XX% is also faster increased volume are the and quarter-over-quarter revenue market market quarter-over-quarter fiat grew spot to grew generated where the in than revenues strongest the and majority $XXX we of in is trading market. the it's

is back Institutional revenue pricing our market grew certain by our part. XX% of Again, roll quarter-over-quarter clients. on and maker for this intentional aspects trade-off an this was decision discounted our driven to

million, was this and contributed staking Ethereum $XXX with quarter, across our This and quarter-over-quarter market outlook Subscription by revenue, and in to increase high and cap, a XX% prices the range. driven grew Bitcoin exceeded better-than-expected in end which strong services revenue particularly the custody. growth of notably

saw also by revenue, in particular, growth rates. in We interest driven USDC which higher our income, was interest

million we've side. expense is expense declined since reduction. January seen the the of XXXX. in one-time operating of XX% related to of headcount total $XXX million. Switching charges shared, lowest as this Included to level includes This restructuring Brian $XXX expenses quarter-over-quarter number to our QX

operating and declined and fees XX% including and quarter-over-quarter. have collectively technology would When general I look and at recurring administrative marketing, expense, sales development,

note, and it's declined $XXX to important quarter-over-quarter million. generated of of Combined, return $XXX a adjusted $XX positive EBITDA XX% net stock-based results Lastly, to to for million. million me a loss these compensation

of ongoing cash of to management. shared saw Brian financing quarter-over-quarter, We and the items, and want declined our in million direct note while during we corporate billion and products. and USD a trusted is included this commitment quarter $XXX crypto that we $XXX cash result I $XXX million spend one-time that this risk with believe deployed to resources. quarter the of inflows $X.X towards our ended brand we custodial million

bank experienced no in We To banking QX, touch as or loss maintained usual on we the briefly operational throughout funds, of turbulence. the failures and operations. corporate customer maintained and excellence business risk largely we

to is rebuilt we've maker XX/X instant our As clients. layers of which infrastructure component lost a today, access restored banking to services, we settlement, redundancy replaced of we've our market critical and

XX%, In is and Next is to market extrapolate to which and I reflected to market asset $XXX in caution revenue, last, our We I Crypto run QX. decrease Coinbase This at these these QX. market market April, cap results. capital approximately while or increase, dynamic our XX%. up QX continue here cap million. April volatility seen remain crypto Again, to scenarios investors volatility where from outlook compared average for turn cap flat could levels. have not transaction was down to need we've diverged in want to

want I predictable So business. more the shift to elements and of our talk about

revenue levels million. cap the market in crisis. services April fell around directly We is which the with QX This expect largely QX correlated $XXX to be average USDC subscription driven from in by and XX% banking decline

and will that be and between technology and sales marketing million. anticipate between we million will general million $XXX QX, million $XX For and and expenses $XXX development $XX be and and administrative

a administrative legal We to higher associated expenses our expense and general in lease short-term termination. expect expenses rent higher due with and the increase

to are turning increase execution just some marked changes that controlling anticipate control and efficient financial headcount. We expect Overall, seasonal pleased what point We our Brian marketing to our our more repeat really want what effort any a results. for we also a associated and can with quarter. said and QX in We're to I company. NBA with real operate our our to sales partnership spend the meaningful don't

Anil, back Q&A. you for to

you Thank Great. both.

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

deck to is a the first Brian? Coinbase So build is, Base, question uses that planning

Yeah.

of a the if Coinbase specific don't So the people know, don't that Layer have at build all for is We any kinds is helping allow scale solution moment. Base applications. different to our X and at deck to effort developers build Base, blockchains

the from to Base actually is to just get build goal Our testnet ecosystem mainnet. main and

testnet, still with expectations So I And people in things of are trying Base and it it, that's build just still little I that hope build possibilities. future, bit. out. people's the many all to temper is to one to of a actually want kinds on we're able

think is time, is The such this able of crypto-forward same like in innovation the been breadth At the exchange Coinbase. just of of to of derivative a is aspects out comment example now. make launching last centralized really come that's our see that innovation on-chain, great I'll effort we've Base our company to we're right awesome I space. really international the been a do that's our entering

to cool really been the see the it's innovation breadth now. So right happening of company at

And tooth country? are moving move outside the what a and would the what and U.S. nail from are, U.S. the did? before leaving prospect have number operations willing we the of question Coinbase the specific So implications customers, thinking be Next if Brian? shareholders plans making Are operations implications to of is some a fight the for outside questions of you is, about U.S. we move and of out the be? of if U.S.? you to how would

Yes.

rule there crypto a this here committed the to bipartisan There's right. create spot this that company actually we're around really support take When new important. space. or in U.S. getting and I other let the this the law come number U.S. pretty get clear I a would the book think important That's other financial to America the create So countries on clear, in for of major legislation they're I top And prevails really the founded here. the is U.S. world, of because go to in I saw that it's really hub United in every much to I'm right. And vying XXX% optimistic rule me strong DC, States Congress for visit be

company. U.S. than we're rhetoric U.K. right the passed frankly, the this EU that to optimistic, lead that so actually And U.S. And little the Singapore, the we're already they're It's et But global in really cetera., crypto actually seeing right. it's But point. or Hong legislation, the Kong from now. think a or different. of get has so kind I going this at is comprehensive a more

started we So America. in

we the mandate we serve capital people about have have company, around can. to to where every We a international, be a going big an year. we multinational want make many we're Obviously, allocate as world as to and our to choices

But at the to now where and leading I we crypto going greatest responsible do is think they're believe. have follow financial clarity to that all can rules the the so ROI. centers, create we could working look And right U.S. and suit, yeah,

a next App, Our is to expected is like Alesia? profitable question Cash when company be PayPal is or Coinbase

for Thanks the question.

we performance asset went that historically our with we volatility price business business cycles. when our public, commensurate there's and crypto that So shared had been in

the So have we net past income where had net and had income periods had in had we the we've we loss. in where periods positive, been lost -- past

we was working EBITDA focus the setting we operating a hard more in we quarter, our intention believe can about goal expenses positive evolve the QX point goal where goal. future mentioned conditions. we And turning market we conditions. And really in place forth. can to lowering generate stages spoke to positive where and towards these as all That business are that EBITDA set remarks, all to believe we prepared a been we our efficiently. a to get And was adjusted on the Last generate with that we've our in market

taken We're details macro well growing I our And that we pleased to too want revenue going in expense benefits this we're invest down the cost structure from business. we deep for are basis. be last, shared spend which on a and and our prepared goal XXXX, we've cost emphasize is, path that in adjusted EBITDA to driven ensure lessons different that I us the comments. here is improve quickly revenue by that the to see prudent revenue what efficiencies, on that and increased believe seeing year-over-year have going of in diversification my of hit the all continuing is to we forward. We're will drivers. improved to serve believe to also But to

Okay.

from questions the SEC. several received we up, Next shareholders regarding

What SEC if SEC for expect doesn't pass time? bill Paul? securities. all this and do would other tokens be the to crypto, plan you court clarity. operate Coinbase Bitcoin Etherium than Coinbase the to how business during for of rule and in Should what So that the you are the be investment years that any the Congress do fight occur. all protect on Coinbase have many should Will impact able to stakeholders

Let me transparent beginning that at share plays including out process about as to investors, we're the can. being that course, our we this We stakeholders, just committed as our of with time. to all information the over engagement say customers, regulators, our SEC, our as with want of much

like. Coinbase itself, they clear As might about as the our their ongoing for what as we the with concerns engagement commission, been not despite engagement are with unfortunately, specific have

bring would potential same court set schedule case. sure. will It lengthy, SEC that a would we the order we resolve fully chose And that of And course, case to factors depend so type the that I litigation be have of matter. and upon of There difficult time, It expect during apply. line at whatever speculating the are SEC from a period time the to to operational be that we be fully much. time to of any It's refrain too for that in might face. required could is especially the the number predict that would, to

SEC, set but out ultimately is a court rule process repeatedly a to to course, the the decide thing see that for and that. we're protect asked say that determinations whether value to just support not of could And to I'll going be standards for last made we're entire plays given of that we've all Coinbase making have the authority. tokens for just value are securities. not be SEC shareholders. security. believe is them clarity. on not of going Those get a process will going that out, does begin course, to legislation in up which, figuring course, industry, investments is not law. are of this or the continue we does a regulatory And which as the to And token It do to to The going itself What

jump in a is notice Paul shared a these this, take questions. and was issue can clear Wells impact about the other assets not made which an serves talk it little of they the to way just to as I bit that manage our to Maybe to of to number among our business us big -- number I but it things, reiterate scenarios with a proactively worked business. and different left But part a management impacts business, of our assure guess. want ongoing you we identify the of to we we're commitment evaluate different that so risk have and and to

represented trading that listening I to that X% you assets. staking represent I revenue. want want Bitcoin those transaction I that attributable to business and of our want the net Ethereum volume just remind international. of remind to also this call to to everyone everyone of is revenue XX% majority roughly under remind and our

while So platform, is meaningful looking from diversification. many notice our that revenues we we and looking different to the revenue have a grow for on SEC, we're this are

laid scenarios running of any at deliver on ability confident these operate scenarios year, adjusted feel objectives which point, EBITDA is on our to year-over-year basis. we improve and this out So financial the through to for and that we're we've a this in really

Okay.

combining additional couple of So a questions.

what's new the Next down and years? features map the are the for product one kind of road is coming pipeline five what next

that I Yeah. take can one.

ready, they're not pipe, new mean, down try preannounce only announce to try We ever coming the vaporware. features on things. specifically we when just not So them I to

broader period. longer of about putting think about things So on we on I'll map over the here question the the time road types a that just try to focus

crypto how see over talk answer time. we that, to I'll So evolving about

crypto of Now people both the of derivatives, as that asset course, in spot lot trade, want as with are launch around still our so the a exchange. also features started class international trading, to an with and we that you and heard market

new as will update financial of adoption, we to think phase crypto services crypto second a type crypto the or be system. The technology a about financial really as of

products you've staking, commerce, et payments us making around global launch so cetera. And there seen easier,

will the the then the crypto of we phase about of And future powering think crypto adoption, Internet. third be

this but games, So systems, now et governance things crypto. WebX, from is related There's all like called and could a with identity, financial social, are not decentralized to of that applications include commonly voting long even at everything necessarily cetera. new services tail being it built

So this most developers. we different to try we're to trusted segments, And the doing retail, make them customer multiple is inject all of the the institutional that easiest the common across into by use. to products theme and our way, and

And design. from things. in there out of lot great to can from come having can compliant, so great having We support, great come space. brand trust the It trusted most the be customer having try a cybersecurity, being

I think we've accomplished that.

also products try And to to make the use. we our easiest

don't be that what's underneath all It's using can to even really They people wires. mean but the doesn't through can't a underneath, move in complexity copper they from complicated understand crypto happening electrons on people electricity, that of from can like benefit switch. light so benefit it. have how don't simple, products, turning And understand if kind those

network of the and through more is road cases, can billion financial day. compelling trying just this help map. system eventually think we way products get utility the ultimately, so really scale that the crypto, the we accessing drive more And our So to create every we're the open people X about product use

our final take before analysts. question moving to prepared the over Okay. We'll

for update final the is any from regulations. you, platform on crypto the So question Brian, Say

Yeah.

crypto It's that custodians the common is think here like the financial I amongst should crypto, regulated. exchanges pretty hubs actors going update consensus that centralized to broad is stay. So in not and there is anywhere, be the the general they It's a sense. and

to needed is for to new that there's view think these a crypto broad centralized ensure I to players that legislation is be use. safe going

around Australia, clear and Both the pretty is back bills structure the earlier, creates powerful. MiCA, in Hong out They've front for EU crypto coins from on both those, following from and Kong, called I D.C. U.K. essentially a are in this. market a have things comprehensive got trip Brazil, the working mentioned of entire I draft works all rule the stable like in single It's legislation book direction. are that just this Singapore, region. adopted on As

countries to technology. think And really broad really also a bipartisan important the U.S., new crypto as so I not this safe protects to that embraces update mean, That's way have keeping investors miss and support pick that really embracing the financial case. for the seeing investors system. legislation I and even of it's in a between technology generation we're this next

the U.S. a frankly, And adults these XX% in bit demanding we'll And crypto. is the is grassroots I optimistic it, advocacy now U.S. elections. in of helping citizens this there. mean, U.S. I'm of from ways behind, now shape here trying have the crypto. crypto major one little -- think are get is countries the do right? used Those It's I effort of help constituent to a still own around that, Coinbase of all the people. lagging that become but XX% adults actually And we're a of

really voice. a be powerful and can It constituent

advocate, people every is champion things raised crypto now XXX congressional single their launched we who up XXX, a that. which [indiscernible] and I be districts, like an those to donating, for congress town have districts one that. So halls, like for signed to have want and going after hand people, people It's of XX,XXX we things crypto the we've named in said,

their hand also And the crypto We called an community With to to sensible On want say, Stand something which NFT and it's I support Native and people was for Crypto. regulation. launched a industry the way raise in Chain,

had those now so far. NFTs we've XXX,XXX over And so of minted

us sort out for chain. a this been of great that's roll on to So way

to that's to towards and just stay, where zooming So go. going I major sensible mean, is is moving is crypto yeah, here we're market crypto think seeing I out, this every regulation, that

Okay.

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

the line from Budish comes of question Benjamin with Barclays. first Your

about in the Coinbase the with sort engagement the really I'm hasn't retail do question. you wanted retail reasons so think terms taking volatility and your Hey, in major about crypto between business thinking guys. just prices. much of talked what sort Thanks ask curious, engagement. divergence about Alesia, you growth of tracked the cap are market I why to of for and asset

And I guess, the trading kind experience lines, like kind on we're well? suggest more that that that kind the resilience may a And yields the you comment think your same from if as of more trader of advanced going would along can sustainable seeing from lot versus simple almost it traders. wonder how you I forward? of be

Thanks for the question, Ben.

crypto So prices. historically, highly and between correlation retail transaction seen with and volumes revenues, we've volatility correlated our asset

And that so but you with has multiyear change volatility remarks, at time. at in been factors prices shared increase, the still seen in one we of my is have volume opening asset we the crypto And this attribute lows. as I to that

staking really customers our we’re new and see excited the products. with engaging are our ways, to we However, engagement so in

the of our see to quarter-over-quarter. excited subscription We’re growth services revenues

excited we’re institutions the I And prime by as platform the quarter. in mentioned, reached highs all-time growth, our on with we really the

continuing roll continuing to to from cannot is the focus engagement conditions with predict on impact new our new innovations. diversification do volume out and engagement. about of platform. and big The growth products getting we is focus and these but our our consumer that a they Brian overall, But the that talked side have good precisely, revenue So trading trading the the market things are we’re see

line from comes the John with question Company. of next Needham Todaro Your &

quarter for my the and Two mind. here, don't if on taking Congrats questions. thanks you

then take volumes. of prior on the kind increase what First really to rate one, of just that and that question. a But kind bit explain hitting the question And is there? on second little

you pick but decentralized it reconcile with customers that a more how of time, and some other encouraging those volumes? wondering cannibalize strategy on exchanges chain, exchanges up some customers move Coinbase of to might the to Just same encouraging at is

I'll questions. maybe you. pass the and to then it first Great I'll one, over Brian, do

we in on increase decision. side, the remarks, back and that pricing, side discounts makers my the the institutional opening rolled on as take our certain in regards mentioned on So to an institutional pricing rate and with for the I market based we saw

our we QX side and as and transaction product side, well. increase pricing different the saw consumer what's had consumer of our the driving began in the into whatever due increased trading, But and in to trading Consumers best. in quarter. can our a frequently choice an types QX, trades year We're trade suits results simple have that On certain on to quarter. which that's simple in in spread late rolled between assessing on them the from we increase advanced they the last an choose

Yes. Thanks, second exchanges decentralized John. and encouraging to volumes to that. we move On your question are like about things

centralized So to decentralized for be both look, I categories. those market a Coinbase play exchanges think there's going big and and wants to in of both

chain. have really be can't that still they a exchanges, centralized the achieved on scalability So

be think I over going derivatives liquid long see I with don't market. to long, -- going that that's We're a is world and going very to the a see for really all going time. so to And deep away. that spot

on any providing to and well. sure to At think offer or we’re decentralized exchanges advantages want that providing some like interesting to exchange to doesn’t do opportunities us that the something customers want, be as there the It that. And monetize as benefit what well. side I will exist long doesn’t customers decentralized same interesting as time, make as we pretend we’re

the comes Oppenheimer. from of Owen next Your Lau question with line

Thank taking question. you my for

regulation to has ability new all actually More crypto of may out it in to there you positive on launch internationally? respond EBITDA in how But to Thank has both So current developments soon, SEC impacted And how your come will bills much petition. the locally Coinbase going the products, positive much are impacted regime think some please I you. generate regulatory could adjusted side. your talk conditions? and about confidence

please take Why Emily, Paul, first the please, add in. Brian don't I and stab

So our not by map product impacted been notice. has road the Wells

Exchange, pleased just to product are the innovation asset a We including to our in from active with to have, International acquiring market. Brian protocols quarter derivative you, the shared this launching an [indiscernible] management product first very as of week,

the So we offerings about of continue about this feeling to and winter very we through that are building can excited breadth have.

time, we’ve previously, we financial the really beginning anything are improve able at a on but objective. to share scenarios, And and as set from see this feel adjusted at that on usual, forth the derail year-over-year business to goals we EBITDA we as of to the don’t that us this which basis. would is we we at run shared deliver about good being And that time year,

Sandler. Your with next question comes from the line Piper Rich of Repetto

you team, Good for and thank evening, taking my Brian Yeah. question.

regulatory to And before Page -- XX, And could legislative of side letter, on the but could end see XQ. the stay in Brian, that we on say, action on we question, the you believe say shareholder sorry important. is the we real you it

So precedent to end legislation you any regulatory that trying towards plan? will Wells case, that lastly, Thank any will that and clarity you. the more provide could bipartisan with clear? And whether you that, the since on been XQ. how that detail give engage (ph) getting notice? and And any have the or any And XRP more details? just of on do with Ripple statement then Would the we're think SEC able the you have that the

can't being on over Paul, to to I something get new we it legislation. don't turn the timing that worked reveal help like that jump and ahead have that but clear that obviously, predict on I that sensitive rule [indiscernible] of go through are book supportive there. of certainly may real we're over the legislation, And to mean, But anything you. a Yeah, happen. seeing Paul, want be in in. there U.S. various motivation parties exactly,

seeing earlier, forward draft initiatives. United basis together to and Brian, on legislation on out and you Just other a own the bipartisan and pointed hopefully, seeing as We're we're also with coming quarter, the here largely not legislative that, move in underscore the but and States United U.K. only their coming jurisdictions the ahead move want proposals States. in moving outside

in time progress but that no line is all legislation, in United just the world. while seeing States, appears not So certainly we're certain, jurisdictions over the it in

and as that that the we crypto able to sense just them provide whole fully Coinbase we’re clarity since about for remain to place time, are conversation as we to the order needs Wells, be SEC wherever makes necessary, question case dialogue I the clarity or with court that And litigation. the in crypto reason may in should well SEC is in to move engagement also may and forward then and same take with it if any we appropriate. action always another speak And any will that through defending committed, at in if a confident to face the industry, not an open as with we

with The comes of MoffettNathanson. the from next line Ellis question Lisa

three should future little a you in sort long-term on vision. the spectrum? the revenues across strategy Terrific. of this Thanks my taking for your you. Can in how question. think your pillars the showing both letter I you how Page to align XX bit elaborate we product about on investments Exhibit and outlined shareholder like the outlined of and Coinbase's they Thank and now

question, the for Lisa. Thanks

as an phase, So we eventually as today, which see and class. where to. we are revenue can products highlighted alluding earned the by in first our what you majority is the that's the And crypto that of is we asset consider you're

this those custody coinbase.com, prime is business, trading trading is market, customer So consumer facilitates the our which which what and the liquidity and platform, front-end spot the includes for experiences.

new and that portfolio larger believe become looking interest are but will don't outlooks, revenue streams products. revenue constantly give listed at a with long-term that you our revenue earlier as venture products, these to we diversify streams, and our that in we here see time, many looking part our we actively and of can other stage. strategic We've have previously consider core, our are in shared stream. you are over We things We

QX, about subscription in to revenue, saw of and we revenue for like quarter. services Just XX% get total the

We that are beginning have revenue dollars. and little green what many shoots, revenue other new subscription to generate small we and call streams services

some lead a we products engage at will not customers I that in don’t stronger platform to perform where diversified to to have diversification other and some with an able today. in this you can specific portfolio will But give perform many some goal to the give services. that And market is and drivers number conditions. that an We’re market outlook have conditions get will our time. overall But different better a different

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

times Good by increased capacity of sort the over indicated What retail orders? do ultimately will time? spread what And regulators Hi. determining you Coinbase number widen have gives on evening. that a this comfort adjustments over the spread Alesia, for for further time. that are spread to you be then you Thanks maybe Coinbase spreads question. of okayed Paul, trading retail quarter. for taking right How

the Thanks question, Ken. for

different frequently assessing transaction types. So we're for pricing

experience. imply of the So doesn't book spread trading simple customers applied with choice their our customers interacting It trading to best. suits for products which directly where example, advance fewer are to experience the and have the order

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U.S. Tiger from the Securities. with Pei Your Bo of next comes line question

for Thanks management. Hi, questions. my taking

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non-compliance Coinbase do the become resident, you apps will example, sure offer on of how For U.S. not some [indiscernible] target if services base make to U.S. regulators? Thanks.

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

much. very Thanks

on question exchange. a derivatives international the Just

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Genuity. Canaccord Vafi line And Joseph the of your comes with final question from

Hey, guys. Good afternoon.

we'd and I interested X circle perhaps could And on rollout also the the back, on there maybe kind Just you're then financial working you're view just thinking of enablement. to us a some front? just of in what on that your Brian, Thanks. your on And original thought you things give comments and here strategy? Layer

that comments, our a did crypto it's is and around really most we the how opening about to we think talk technology out and update economic there how do the think system. in I mission to technology increasing important freedom Well, the Yes. financial

who infrastructure, I enablement I kind empowerment. and to, think, Look, access there's referring lot what don't good to So of have a good that's world people mean of around financial you're financial right? around the today

them. of a unlock is can potential many the just grease economy That of friction both back skids to And and you growth of This in -- use cases that you ways kind crypto. ways. settlement set speak, by the there's classes it and in whole lower holding can more be the money really various thing cases, different can if way, asset use non-financial really of efficient for move tokenize make this it and many become them to financial the times payments are if and

people's basic also rights It and property freedom increases like just things with that.

idea who now really powerful so is cellphone And planet, access an really a the on Internet humans to the they for start now has thing. financial and good majority a it's world. that sound connection, get get a That's It's -- can infrastructure. powerful anybody really to of the good, which

leave And yes, my thoughts. I'll it are there. . those high-level So

to -- speaking we us today, our next Okay. all Great. Well, you forward and look speaking in to joining again again thank to you you for call.

today's call. concludes This

now disconnect. may You