Q&A（Question-and-Answer Session）is a session after the company's prepared remarks where institutional investors and analysts ask management questions. In this dialogue, you may find some valuable information that might affect the stock price in the following weeks.
Now let's look at some key points from Coinbase Q4 2022 Q&A Session Transcript $Coinbase Global, Inc.(COIN)$
Q:You highlighted your goal for 2023 is to improve full year adjusted EBITDA in absolute dollar terms versus 2022. And then that you're setting your sights on positioning the company to generate adjusted EBITDA in all market conditions. So it seems like after the current 25%-plus expense reduction, you believe this is a reasonable goal. Just curious on the revenue side of the equation, what are the revenue scenarios kind of underpinning that? And what's the revenue threshold that would make that goal achievable?
A:So as we shared in our outlook, we're really focusing our near-term outlook on things that we control. So our subscription and services revenue, we believe converts $300 million to $325 million in Q1 and which has healthy growth off of the reported results of Q4. We've also seen a lot of volatility in our transaction revenues, and we continue to see volatility as we saw that crypto market cap was up 40% quarter-to-date in Q1 [technical difficulty] transaction revenue to be volatile. It could be up, it could be down. It could be static over the year. We are preparing for that range, and we are prepared to grow subscription and services against this more moderate expense base.
There are scenarios that we could be EBITDA positive this year. But the goal, because we're preparing for the worst and hoping for best, is to ensure that we improve EBITDA year-over-year. And that is what we're setting at this point in time. We will continue to update you as we get more data points as we go through the year.
Q:If I can sneak in another one just quickly for Paul, the SEC -- or SEC Chair Gensler continues to say that he wants crypto firms and crypto products to register with the SEC. What is the risk to Coinbase or the downside of registering either firm or products with the SEC?
A:Coinbase is certainly familiar with registration with the SEC. And then, of course, as a publicly listed company, we were required to complete an S-1 back in April 2021. We're also quite familiar with the Chair's comments regarding registration of individual products and services. To the extent that registration is appropriate because, first and foremost, products and services qualified securities under the federal securities laws. Coinbase is quite open and eager to seek a path to registration where one is being available.
I think it's fair to say that at this point in time, the path to registration for products and services that may qualify as securities has not been open or at least readily or easily opened. So that's proven to be challenging. But we're always eager to pursue a registration where it makes sense, and we will continue to engage in conversations and dialogue where we have an opportunity to do so with the SEC or anybody else.
Q:If you could just take us through the integration with Aladdin and how we should think about monetization progressing there? Is that going to be primarily from Citi?
A:So we don't have a material update around the integrated Aladdin. As we announced, we are now in and on the back end, but the monetization is going to be that customers who have Aladdin can also serve in the Coinbase. So we're hopeful that what this does is put crypto side by side with other stocks, bonds or tradable assets of hedge funds and asset managers.
And it enables them to risk manage to have operational control commensurate in crypto that they could in other asset classes. And so those customers were also onboard onto Coinbase base and trade on our products and services and monetize on our platform. And then there's going to be, obviously, some sort of commercial agreement between us and BlackRock. We haven't provided public information on at this time.
The above Q&A are highlights that are edited for brevity. Click here for the full Coinbase Q4 2022 Earnings Call Transcript.
If you want to know more details, you can click here to re-watch the Coinbase Q4 2022 Earnings Conference Call
Comments