The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Lisa Ellis - MoffettNathanson LLC - Analyst
: Hey, good afternoon and thanks for taking my question and for doing this call. Great content already covered. I wanted to ask a follow-up on the
question about how you are I guess partnering potentially with some of the traditional digital wallets and retail brokerages that are beginning to
offer crypto investing to their consumers?
Are you finding you are engaging with these players like more as competitors or more as partners? I mean, you called out in the shareholder letter
that you are seeing interest in like white label versions, I guess, as sort of a Coinbase inside type of model. Kind of what's your overall strategy as
we seeing this like pretty rapid ramp of crypto capabilities at traditional brokerages? Thank you.
Question: Kyle Voigt - Keefe, Bruyette & Woods, Inc. - Analyst
: Hi, good evening. Maybe just one on the retail transaction fee rate in the quarter. It came in closer to 120 basis points versus where you were at
last year at around 140 basis points. Was that driven by Coinbase Pro users hitting higher volume tiers? Or was it simply a mix of volume shifted
towards the Coinbase Pro users versus the Coinbase.com users?
And then if can you just also, if it was driven by that volume mix, just wondering whether you are seeing any migration of customers from Coinbase
to Coinbase Pro? Or was it just about those existing Coinbase Pro users simply trading much more? Thank you.
Question: Kenneth Hill - Loop Capital Markets, LLC - Analyst
: Great. Hey, good afternoon, everyone. I wanted to go back to that question on geographic outlook for Coinbase. Alesia, I think you said you are
moving a little more slowly in other regions, just given you are taking a more regulated approach. I was hoping you could talk to maybe a little bit
about maybe what countries have the most mature regulatory environment? I think about a quarter of your revenues today come from rest of
world.
And then kind of as you think about expanding outside the US, how do you kind of pitch the sales and marketing effort there? Maybe where your
brand loyalty isn't as strong or regular safeguards aren't quite as important to customers in maybe some of those other markets. Thanks.
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MAY 13, 2021 / 9:00PM, COIN.OQ - Q1 2021 Coinbase Global Inc Earnings Call
Question: Mark Palmer - BTIG - Analyst
: Yes, thank you for taking my question. I wanted to get your take on what kind of demand you are seeing on the institutional side for your new
prime brokerage product from hedge funds from large mutual fund complexes? How would you assess that demand? And if you could give some
insight as well on the lending aspect of the prime brokerage product and what its prospects are? Thank you.
Question: Harshita Rawat - Bernstein - Analyst
: (technical difficulty) front row seat in the development of the crypto ecosystem. You've coined the term crypto economy. I know it's a hard question
given the early innings that we are in, but can you talk about some of the most powerful applications of crypto over the next 5, 10 years in terms
of [DeFi] [to the value payments]? And how can Coinbase participate as an on-ramp to the crypto economy? Thank you.
Question: Owen Lau - Oppenheimer & Co. - Analyst
: Good afternoon and thank you for taking my question. I think it's still in early days, but I think your cash balance almost doubled to $2 billion in
three months. And the second quarter trading volume so far I think seems to be strong.
So what is the capital management priority regarding reinvesting back to the business, M&A, buybacks, and things like that? And if there's a
disconnect between the fundamentals of Coinbase as a whole in the stock price, how would you think about even initiating buybacks? Thank you.
Question: Owen Lau - Oppenheimer & Co. - Analyst
: Okay, thank you very much.
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