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Sensor Tower · Abraham Yousef · February 2023
MMM: Coinbase EPS Exceeds Expectations
Coinbase's 4Q22 revenue and EPS exceeded expectations, but the platform saw a significant drop in transacting users, with monthly transacting users declining 26% YoY in 4Q22. Sensor Tower also reported a 50% YoY drop in MAUs for Coinbase's mobile app. In contrast, Mercado Libre's evolution into a super app has broadened its portfolio of products and increased its customer touchpoints, resulting in an 11% YoY growth in MAUs across both its mobile apps in 2022.
Key Takeaways:
Coinbase’s 4Q22 revenue and EPS beat estimates, but also reported a significant drop in transacting users, as the crypto winter extends further in 2023
Usage on Coinbase was down notably after lapping the Nov’21 collapse of bitcoin; reported Monthly Transacting Users (MTUs) declined 26% YoY (-2% QoQ) in 4Q22 while Sensor Tower MAUs for Coinbase’s mobile app fell 50% YoY (-11% QoQ)
In addition to losing total users, Sensor Tower is also indicating fewer “power users”: the average Coinbase user opened the app 4.5 days/month in Jan’23 (vs 7 in Jan’22 and 8.4 in Jan’21)
The evolution of Mercado Libre from simply a marketplace app to a super app, akin to APAC-based companies such as Sea Limited and Grab, has broadened its portfolio of products and increased its customer touch points, allowing it to better weather macroeconomic volatility. This includes the growing strength of its FinTech arm, which offers POS services and a credit card for merchants and consumers
2022 user growth was an acceleration from 2021 growth, in spite of rising interest rates, record-high levels of inflation, and a decline in consumer spending on retail goods: Per ST estimates, MAUs across both the Mercado Libre and Mercado Pago mobile apps grew a combined 11% YoY (vs 4% in 4Q21) while Mercado Libre’s reported Unique MELI active users increased 18% YoY (vs 11% in 4Q21)
For more information, request the full report from reports@sensortower.com.
