Coinbase Global, Inc. stock research
FY2023 Q1
Coinbase Global (COIN) Gross Margin — Quarter Ended Mar 31, 2023
Revenue grew compared to the previous quarter, while cost of revenue fell, leading to an increase in gross profit and an improvement in gross margin. Relative to the same quarter a year earlier, revenue was lower but gross profit rose because cost of revenue was significantly lower, resulting in a much higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue grew compared to the previous quarter, while cost of revenue fell, leading to an increase in gross profit and an improvement in gross margin. Relative to the same quarter a year earlier, revenue was lower but gross profit rose because cost of revenue was significantly lower, resulting in a much higher gross margin.
- The most notable observable driver is the reduction in cost of revenue, which decreased from both the prior quarter and the year-ago period, outpacing the change in revenue.
- Compared to the immediately preceding quarter, gross margin strengthened as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin improved markedly because cost of revenue accounted for a much smaller share of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
92.9%
Gross profit
$717.8M
Revenue
$772.5M
Cost of revenue
$54.7M
Quarter-over-quarter change
n/a
Year-over-year change
+36.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $772.5M | $717.8M | $54.7M | 92.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+36.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver is the reduction in cost of revenue, which decreased from both the prior quarter and the year-ago period, outpacing the change in revenue.
Compared to the immediately preceding quarter, gross margin strengthened as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin improved markedly because cost of revenue accounted for a much smaller share of revenue.
Monitor the trajectory of cost of revenue in future quarters to assess whether the current low level is sustainable; the filing notes the company's liquidity and capital resources, which may be relevant to maintaining the cost structure.