Exodus Reports $12.4 Million Revenue in Q2 2023
Crypto wallet company Exodus announced a revenue of $12.4 million in the second quarter, experiencing a 4% decline compared to the previous year. Despite the revenue dip, Exodus achieved a net income of $1.9 million, influenced by cost reductions of 6% year-over-year. The company attributed a significant portion of its revenue to its exchange aggregation business, accounting for $11.6 million during the quarter.
Main Breakdowns:
- Fiat onboarding revenue surged by 220% to $561,000 from the previous year.
- Volume of exchange provider transactions in Q2 dropped by 12% compared to the same period in 2022.
- Bitcoin (BTC), Tether (USDT), and Ether (ETH) were the most traded assets, contributing 27%, 16%, and 12% of the trading volume, respectively.
- Monthly active users experienced a decrease of 6% to 772,839 in Q2.
- Exodus holds $55 million in cash, cash equivalents, and U.S. Treasury bills, along with $46.2 million worth of Bitcoin in its treasury.
Exodus managed to streamline its costs, resulting in a 6% reduction in expenses. The company also significantly trimmed down administrative and marketing allocations by 65%. As a result, general and administrative expenses represented 32.2% of the company’s revenue, lower than Q2 of last year.
Exodus’ CEO and co-founder JP Richardson stated that the company is now positioned as a leader in the digital wallet space. Richardson highlighted significant technical and engineering achievements during the quarter, including product launches such as Robinhood Connect, support for Ethereum Layer-2 solutions, and the introduction of Matic staking in Exodus Mobile.
Hot Take:
Despite a slight decline in revenue, Exodus’ cost reduction efforts and achievements in the digital wallet space are commendable. The surge in fiat onboarding revenue and the company’s large BTC holdings indicate its potential for growth and stability in the crypto market.
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