Coinbase Employee Count, Revenue And Profit Per Employee

Cryptocurrency. Pixabay image.

Coinbase Global (NASDAQ: COIN), one of the world’s largest cryptocurrency exchanges, has grown rapidly since its inception in 2012.

With its headquarters in San Francisco, the company has expanded to serve customers in over 100 countries.

As of 2023, Coinbase has over 3,000 workers across its various offices, making it one of the largest employers in the blockchain and cryptocurrency industry.

The company prides itself on its diverse and talented workforce, which primarily includes engineers, designers, marketers, and customer support specialists.

This article provides regular updates on Coinbase’s employee count, offering an insightful view of the impact of employees on the company’s continued success.

Let’s take a look!

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Adjusted EBITDA: Coinbase calculates the Adjusted EBITDA as net loss or income, adjusted to exclude the following items:

– provision for or benefit from income taxes,
– depreciation and amortization,
– interest expense,
– crypto asset borrowing costs,
– stock-based compensation expense,
– crypto asset impairment, net,
– loss or gain on investments, net,
– other impairment,
– restructuring,
– gain on extinguishment of long-term debt, net,
– change in unrealized foreign exchange,
– fair value gain or loss on derivatives,
– non-recurring legal reserves and related costs, and other adjustments, net.

Coinbase uses the Adjusted EBITDA to evaluate its ongoing operations and for internal planning and forecasting purposes. It believes that Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance.

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Employee Count

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Coinbase’s total employees reached 4,500 by the end of fiscal 2022, the highest number ever recorded, before declining to 3,400 as of 3Q 2023.

Since fiscal 2019, Coinbase’s total number of employees has increased by 500%, reaching its peak at 4,500 by the end of fiscal 2022.

In 1Q 2023, Coinbase announced and completed a restructuring, named “2023 Restructuring”, impacting approximately 21% of the Company’s headcount.

The 2023 Restructuring was intended to manage the Company’s operating expenses in response to the ongoing market conditions impacting the economy and ongoing business prioritization efforts.

As a result, approximately 950 employees in various departments and locations were terminated.

As of 3Q 2023, Coinbase’s employee count declined to 3,400, down 24% over 2022.

Despite the significant decrease in employee count, Coinbase’s total number of employees in fiscal 3Q 2023 was still 172% higher than the figure recorded in 2020.

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Revenue Per Employee

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Coinbase earned approximately US$628,700 in revenue per employee in the first three quarters of 2023, the lowest figure ever measured since 2019.

In fiscal 2022, Coinbase earned US$708,250 in revenue per employee, down significantly from the US$2.1 million in revenue per employee measured in fiscal 2021.

Despite the significant employee cut in fiscal year 2023, Coinbase’s revenue per employee was still considerably lower than the peak in fiscal year 2021.

Coinbase achieved its peak revenue per employee of US$2.1 million in fiscal 2021.

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Operating Profit Per Employee

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In this section, Coinbase’s profit per employee is measured according to the operating profit, a GAAP measure extracted from the company’s income statement.

As presented in the chart, Coinbase’s operating profit per employee has significantly declined after peaking at US$825,000 in fiscal 2021, reaching -US$81,000 in the first three quarters of 2023.

Coinbase’s operating profit per employee was significantly down in 2023 compared to 2021 but much better than 2022.

As seen, Coinbase’s operating loss per employee of -US$601,000 in fiscal 2022 was much worse than the -US$81,000 measured in 2023.

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Net Profit Per Employee

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In this section, Coinbase’s profit per employee is measured according to the net profit, a GAAP measure extracted from the company’s income statement.

Coinbase’s net profit per employee was approximately -US$52,100 as of the first three quarters of 2023.

In fiscal 2022, Coinbase’s net loss per employee totaled -US$582,000, totally reversed from the net profit per employee of US$971,600 reported in fiscal 2021.

Coinbase achieved its peak net profit per employee of US$971,600 in fiscal 2021.

The primary concern is that Coinbase’s net loss per employee will get much worse in 2023 than in 2022.

Judging from the result as of the first three quarters of 2023, Coinbase’s net loss per employee has significantly narrowed, down to only -US$52,100.

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EBITDA Per Employee

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In this section, Coinbase’s profit per employee is measured according to the adjusted EBITDA, a non-GAAP measure extracted from the company’s annual report.

Coinbase’s adjusted EBITDA per employee recovered to US$192,150 as of the first three quarters of 2023, significantly improved from the EBITDA loss in 2022.

In fiscal 2022, Coinbase’s EBITDA per employee measured at -US$82,350, implying that the company incurred a significant loss per employee.

Coinbase achieved its peak profit per employee in fiscal 2021, measuring US$1.1 million in adjusted EBITDA per employee.

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Conclusion

To recap, Coinbase had 4,500 employees as of the end of fiscal 2022.

In 2022, Coinbase reported revenue of US$3.2 billion. This translates to a revenue per employee of approximately US$708,000 in 2022.

Furthermore, Coinbase has been profitable for several years, with a net income of $3.6 billion in 2021. This translates to a profit per employee of approximately $972,000 in 2021.

However, the company’s profitability per employee took a dive in 2022, down to -US$582,000, the worst figure ever measured since 2019.

As of 2023, Coinbase’s revenue and profit per employee recovered significantly from the slump in 2022, thanks to the company’s ability to attract and retain top talent as well as the recovering crypto market.

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Credits and References

1. All financial figures presented in this article were obtained and referenced from Coinbase Global, Inc.’s annual and quarterly filings, earnings reports, news releases, shareholder presentations, etc., which are available in Coinbase Investor Relations.

2. Pixabay images.

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Disclosure

References and examples such as tables, charts, and diagrams are constantly reviewed to avoid errors, but we cannot warrant the total correctness of all content.

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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