Exodus’ profitability soars despite decline in revenues

Exodus, a publicly listed company whose primary product is its self-custodial crypto wallet, recently announced its Q1 2023 financial results, which showed a year-over-year decrease of 13% in revenue, amounting to $13.3 million compared to Q1 2022.

Despite the revenue decline, however, the company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to $3.5 million in Q1 2023, up from $0.6 million in Q1 2022, according to a press release.

These numbers indicate significant improvements in its operating performance, resulting in higher profitability in Q1 2023. The increase in adjusted EBITDA, positive income from operations, and positive net income all indicate that despite decrease revenue, the company has become more profitable during this period.

CEO and co-founder of Exodus, JP Richardson, expressed gratitude to the company’s 800,000 loyal customers, stating,

“We’re thrilled that our 800,000 loyal customers persevered through last year’s downturn to reach the brighter days ahead.”

Richardson attributed the company’s profitability in Q1 to increased transactions, exchange volume, and “significantly more downloads of Exodus,” combined with disciplined corporate spending.

The most significant product success for Exodus in Q1 2023 was the release of its dApp browser in Exodus Mobile. The browser enables users to access Web3 features directly from their mobile devices, including “advanced lending, borrowing, staking, [and] insurance” capabilities, among others.

Key operational and financial highlights from the Q1 2023 report include a 12% year-over-year decrease in processed exchange volume, 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 decreased by 6% year-over-year to 821,566 users in Q1 2023.

Additionally, the company recorded 660,143 downloads across Exodus Mobile, desktop, and the Web3 wallet, an 18% decrease compared to Q1 2022.

As of March 31, 2023, Exodus held $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, totaling 195 members.