Unconfirmed: What $1.8 Billion in Q1 Revenue Means for Coinbase’s Direct Listing - Ep.227

Unchained

Laura Shin

News, Tech News, Business News

4.6 • 1.3K Ratings

🗓️ 9 April 2021

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

Larry Cermak, director of research at The Block, discusses the upcoming Coinbase direct listing in light of the exchange’s recently released Q1 revenue hitting an impressive $1.8 billion. In this episode, Larry talks about: significant takeaways from Coinbase’s Q1 results (1:04) how Coinbase was able to increase its non-transaction revenue in Q1 and why he thinks the exchange gets away with charging higher fees than its competitors (4:14) why retail consumers are investing in crypto at such a high clip (8:36) how Coinbase compares to its competition -- and why competition will drive transaction fees down (11:23) whether it matters that Coinbase has so little Bitcoin on its balance sheet (14:52) what he still wants to know about Coinbase after its S-1 filing and Q1 results 15:36) products and services that Coinbase should acquire to round out its crypto offering (17:10) his expectations for Coinbase’s stock performance (17:50) why investors may not be interested in NFTs (19:37) how the crypto markets will perform in 2021 and how that might affect the COIN price (20:43) Crypto New Recap (22:40) Thank you to our sponsors! Download the Crypto.com app and get $25 with the code “Laura”: https://crypto.onelink.me/J9Lg/unchainedcardearnfeb2021 Check out InterPop, a superteam redefining the future of NFTs and fandom! https://hellointerpop.io/?utm_source=Unchained&utm_medium=episode-sponsorship&utm_campaign=interpop-launch&utm_content=interpop Episode links: Larry Cermak https://twitter.com/lawmaster Coinbase Q1 Results Coinbase Details https://investor.coinbase.com/news/news-details/2021/Coinbase-Announces-First-Quarter-2021-Estimated-Results-and-Full-Year-2021-Outlook/default.aspx Larry Cermak Analysis https://twitter.com/lawmaster/status/1379527265021743110 The Block https://www.theblockcrypto.com/genesis/100749/final-notes-ahead-of-the-coinbase-direct-listing?utm_source=research&utm_medium=email&utm_campaign=2021-04-08 John Street Capital https://twitter.com/JohnStCapital/status/1379526362692788227 Direct Listing Information https://www.cnbc.com/2021/04/01/coinbase-direct-listing-set-for-april-14-after-sec-approval.html https://www.coindesk.com/coinbase-sec-form-s-1 Related Podcasts Gil Luria https://unchainedpodcast.com/is-coinbase-stock-a-good-buy-this-analyst-says-yes/ Jeff Roberts https://unchainedpodcast.com/coinbases-s-1-the-number-that-may-make-the-exchange-nervous/ Link to the Crypto News Recap: https://unchainedpodcast.com/happy-birthday-satoshi1/ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi everyone, welcome to Unconfirmed. The show that reveals how the marquee names in
0:07.8	crypto are reacting to the least half headlines and can see inside scoop on what they see
0:11.6	on the horizon. I'm your host, Laura Shin, a journalist with over two decades of experience.
0:16.6	I started covering crypto five years ago and as a senior editor at Forbes was the first
0:21.0	mainstream media reporter to cover cryptocurrency full time.
0:24.4	You may have heard about Interpop, a super team laser focused on the emerging landscape
0:28.8	of fandom. They are tapping into the latest innovations in NFTs to revolutionize gaming,
0:34.6	collectibles and comics on tasos. Learn more at hellointerpop.io.
0:40.4	Thecrypto.com app pays you up to 8.5% interest on your Bitcoin. Get $25 when you download
0:46.4	thecrypto.com app with code Laura. The link is in the description.
0:51.7	Today's guest is Larry Sermack, Director of Research at the Block. Welcome Larry.
0:56.3	Hey, happy to be here. This week Coinbase dropped its first quarter earnings ahead of its
1:01.8	direct listing next Wednesday, April 14th. What were your big takeaways from the Q1 results?
1:08.2	Sure, I mean, there are a few things. I think almost everyone expected that the revenue numbers
1:14.6	would just be much better than they were in the previous quarter. But still, I think almost
1:19.5	everyone was shocked by the $1.8 billion figure. Even I expected slightly less, I think I was
1:26.7	projecting something like 1.45. But I think mainly just people outside of crypto that don't really know
1:33.8	how the revenues are tied to volumes and how crazy the Q1 has been. I think those have been the
1:39.6	ones that have been the most shocked about this. I think it opened a lot of eyes for a lot of
1:44.8	people. I think that was the intention from Coinbase to publish this right before they actually
1:49.7	list because they had the best quarter ever by far and they outperformed the entire last year
1:56.6	by 0.5 billion. That was really the biggest takeaway. But there were a few other ones. Another
	...

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