Coinbase Global ( NASDAQ: COIN ) stock edged 3.2% higher after the bell on Tuesday as the cryptocurrency exchange posted Q4 results slightly above expectations, helped by efforts to diversify revenue and cut costs. Q4 EPS was -$2.46 vs. $3.32 in Q4 2021, while revenue sank 74.8% Y/Y to $629.1M, as the prolonged downturn in the crypto market ate into Coinbase's earnings. Q4 net revenue was $605M, up 5% sequentially. Transaction revenue dropped 12% Q/Q to $322M, but this was offset by a 34% increase in subscription and services revenue at $283M. Coinbase ( COIN ) had 8.3M monthly transacting users during Q4, down from 8.5M in Q3. Total transaction revenue dropped 12% Q/Q to $322M, driven by lower total trading volume - down 9% Q/Q at $145B. The global crypto spot market trading volume declined 21% Q/Q. Q4 total operating expenses were $1.2B, up 3% Q/Q, driven by anticipated seasonality in marketing spend, timing of stock-based compensation awards, and the $50M settlement with NYDFS. Excluding the settlement, operating expenses would've been down ~1%. Coinbase ( COIN ) expects job cuts announced last month and ongoing cost management efforts will result in over 30% reduction in Q1 expenses compared to Q4'22. The company generated $120M of transaction revenue in January. It expects subscription and services revenue of $300M-$325M in Q1, up 6%-15% Q/Q. Coinbase ( COIN ) expects 2023 to be a year of regulatory focus and "we believe our strong foundation will make us a net beneficiary of this new environment." Conf call at 5.30 pm ET. Earlier, Coinbase dipped after D.A. Davidson downgraded the stock on growing regulatory risks .
