Exodus Reports Q2 2023 Financial Results: Revenue Declines but Company Maintains Profitability
Summary:
Exodus, the multichain wallet, discloses its Q2 2023 financial results, revealing a 4% decrease in revenue year-over-year. However, the company reports a net income of $1.9 million. The majority of revenue comes from its exchange aggregation business, while Fiat onboarding revenue shows a significant increase. Despite a decrease in monthly active users, Exodus reduces costs by 6%. The company holds $55 million in cash and $46.2 million worth of Bitcoin. Exodus integrates with Robinhood and expands support for Arbitrum, Optimism, and Matic staking. CEO and co-founder, JP Richardson, highlights plans to provide technology to other companies.
Exodus, the multichain wallet, unveiled its financial report for the second quarter of 2023. The company's revenue in Q2 reached $12.4 million, marking a 4% decline compared to the previous year. However, it recorded a net income of $1.9 million. Exodus stated that a significant portion of its total revenue, amounting to $11.6 million, came from its exchange aggregation business. Additionally, Fiat onboarding revenue increased by 220%, reaching $561,000. The volume of exchange provider transactions during the quarter stood at $591.5 million, reflecting a 12% drop from Q2 2022. Bitcoin (BTC), Tether (USDT), and Ether (ETH) were the top assets traded in the quarter, constituting 27%, 16%, and 12% of the volume, respectively. Exodus generates revenue through API integration fees charged to third parties. Nevertheless, the monthly active users for the second quarter decreased by 6% to 772,839, as compared to 817,972 in the previous year. Exodus reported a reduction in costs by 6% year-over-year, amounting to $7.1 million for Q2. This reduction was mainly attributed to a decrease in headcount and cloud infrastructure expenditures. In terms of headcount, the Exodus team decreased from 290 to approximately 195 full-time equivalents as of June 30, 2023. Despite the challenging market conditions, the company managed to reduce administrative and marketing expenses by 65%, totaling $4 million. In Q2 2022, these expenses accounted for 87.1% of the company's revenue, but in Q2 2023, they represented only 32.2%. As of June 30, Exodus held $55 million in cash, cash equivalents, and U.S. Treasury Bills, in addition to $46.2 million worth of Bitcoin. The company claims to be one of the few public companies with over 1,000 Bitcoin in its corporate treasury. Notable developments during the quarter include the integration with Robinhood Connect, enabling users to buy and hold cryptocurrencies in Exodus through Robinhood's cash and buying power. Exodus also expanded its support for Arbitrum and Optimism, and implemented Matic staking. Looking ahead, JP Richardson, the CEO and co-founder of Exodus, stated that the company's next focus is to provide its technology to other firms through services like Wallet-as-a-Service or Infrastructure-as-a-Service.
Published At
8/24/2023 9:55:00 PM
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