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Exodus reports $12.4 million in revenue and $1.9 million in net income for the second quarter.
Multichain wallet Exodus has published its financial results for the second quarter of 2023, revealing revenue of $12.4 million, which represents a 4% decline compared to the previous year. The net income was reported at $1.9 million.
Exodus indicated that its exchange aggregation segment was the primary contributor to total revenue for the quarter, amounting to $11.6 million. Revenue from fiat onboarding surged by 220% from 2022, reaching $561,000. The transaction volume from exchange providers in Q2 was $591.5 million, reflecting a 12% decrease from Q2 2022. The leading assets traded during the quarter were Bitcoin (BTC), Tether (USDT), and Ether (ETH), comprising 27%, 16%, and 12% of the volume, respectively.
Exodus earns revenue through API integration fees imposed on third parties. However, the number of monthly active users fell by 6% to 772,839 in the second quarter, down from 817,972 the previous year.
Exodus cash and digital assets holdings. Source: Exodus
In spite of the revenue drop, Exodus’ performance was bolstered by a 6% reduction in costs year-over-year, totaling $7.1 million in the second quarter. The company attributed the lower expenses to a decrease in workforce and cloud infrastructure costs, noting that “the Exodus team consisted of approximately 195 full-time equivalents as of June 30, 2023, down from 290 as of June 30, 2022.”
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During the bear market, Exodus also reduced its administrative and marketing budgets by 65% in the quarter, leading to expenses of $4 million. Total general and administrative costs accounted for 32.2% of the company’s revenue, a notable reduction from 87.1% in the second quarter of 2022.
As of June 30, Exodus reported holding $55 million in cash, cash equivalents, and U.S. Treasury Bills, in addition to $46.2 million in Bitcoin, asserting that it is among the few public companies with over 1,000 Bitcoin in its corporate treasury.
Among significant developments in the quarter, the company launched an integration with Robinhood Connect, enabling users to buy and hold cryptocurrencies in Exodus using Robinhood’s cash and buying power. Exodus also introduced full support for Arbitrum and Optimism, along with Matic staking.
“Thus, the next phase for Exodus is to extend our technology to other companies, often referred to as Wallet-as-a-Service or Infrastructure-as-a-Service,” stated JP Richardson, CEO and co-founder of Exodus.
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