Multi-chain wallet Exodus released its financial results for the second quarter of 2023, with revenue of $12.4 million, down 4% year-on-year. Net profit amounted to $1.9 million.
Exodus said its exchange aggregation business accounted for the majority of total revenue for the quarter, totaling $11.6 million. Fiat’s on-line revenue is up 220% from 2022 to $561,000. Exchange provider volume was $591.5 million in Q2, down 12% from Q2 2022. Bitcoin (BTC), Tether (USDT), and Ethereum (ETH) were the most traded assets during the quarter, accounting for 27%, 16%, and 12%, respectively. % of volume respectively.
Exodus generates revenue through API integration fees charged to third parties. However, monthly active users fell 6% to 772,839 in the second quarter from 817,972 a year earlier.
Despite the decline in revenue, Exodus’ results were strengthened by a 6% year-over-year decline in costs to $7.1 million in the second quarter. The lower headcount and cloud infrastructure spending led to lower expenses, the company said, adding, “As of June 30, 2023, the Exodus team had approximately 195 full-time employees, up from approximately 195 full-time employees as of June 30, 2022. It was down from 290 people in 2019.”
During the bear market, Exodus also cut administrative and marketing funding by 65% in the quarter, resulting in $4 million in expenses. Total general and administrative expenses accounted for 32.2% of the company’s revenue, down sharply from 87.1% in the second quarter of 2022.
As of June 30, Exodus held $55 million in cash, cash equivalents and U.S. Treasury bills, as well as $46.2 million worth of bitcoin, making it one of the few publicly traded companies to hold more than 1,000 bitcoin in corporate vaults .
In a major development this quarter, the company launched an integration with Robinhood Connect, allowing users to buy and hold cryptocurrencies in Exodus via Robinhood Cash and so-called buying power. Exodus has also added full support for Arbitrum and Optimism as well as Matic staking.
“So the next step for Exodus is to offer our technology to other companies, often referred to as wallet-as-a-service or infrastructure-as-a-service,” said Exodus CEO and co-founder JP Richardson.
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