Exodus, one publicly listed company whose primary product has recently been its own crypto wallet announced the financial results for the first quarter of 2023, which showed a 13% year-over-year revenue decline, amounting to $13.3 million compared to the first quarter of 2022.
Despite the revenue decline, the company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to $3.5 million in Q1 2023, up from $0.6 million in Q1 2022, according to a press release.
These figures indicate significant improvements in operating performance, resulting in higher profitability in the first quarter of 2023. The increase in adjusted EBITDA, positive operating income and positive net income all indicate that, despite declining sales, the company is in this period has become more profitable.
Exodus CEO and co-founder JP Richardson thanked the company’s 800,000 loyal customers and stated:
“We are thrilled that our 800,000 loyal customers have weathered last year’s downturn to reach the brighter days ahead.”
Richardson attributed the company’s first-quarter profitability to increased transactions, exchange volume, and “significantly more Exodus downloads,” combined with disciplined operating spending.
The most significant product success for Exodus in Q1 2023 was the release of the dApp browser in Exodus Mobile. The browser allows users to access Web3 features directly from their mobile devices, including “advanced borrowing, borrowing, staking, [and] insurance options, among others.
Key operational and financial highlights from the Q1 2023 report include a 12% year-over-year decline in exchange volume processed, totaling $645.6 million.
Bitcoin, USDT and Ethereum were the top assets traded, accounting for 27%, 15% and 11% of the volume respectively. Monthly active users were down 6% year-over-year to 821,566 users in Q1 2023.
In addition, the company recorded 660,143 downloads across Exodus Mobile, desktop, and the Web3 wallet, down 18% compared to Q1 2022.
As of March 31, 2023, Exodus had $101 million in digital assets and cash, including $41.3 million in Bitcoin and $54 million in cash, cash equivalents, and Treasury bills.
The number of full-time equivalent team members at Exodus decreased by 28% year-over-year, to a total of 195 members.
