Analysis of Coinbase Q1'23 Earnings

Coinbase's quarterly trading volume remained flat QoQ while down (~53%) YoY. Retail volume increased +5.0% QoQ, down (72%) YoY. Institutional volume slightly decreased (~1%) QoQ while down (~47%) YoY. 

Net revenue increased +21.7% QoQ, still down (~37%) YoY. Transaction revenue grew from $283mm to $362mm QoQ. The increase was primarily driven by retail trading fees which increased to $352mm from $309mm. Subscription and services revenue growth was fueled primarily by a +32% QoQ increase in interest income.