Exodus, a multi-chain wallet provider, has released its financial results for the second quarter of 2023, revealing a revenue of $12.4 million, marking a 4% decline year-on-year. The company reported a net profit of $1.9 million.
Exodus attributed the majority of its total revenue for the quarter, amounting to $11.6 million, to its exchange aggregation business. Notably, its online fiat revenue surged by 220% compared to 2022, reaching $561,000. However, the exchange e provider volume during Q2 decreased by 12% from the same period in 2022, totaling $591.5 million. The most traded assets on the platform during the quarter were Bitcoin, Tether (USDT), and Ether, accounting for 27%, 16%, and 12% of the trade volume, respectively.
The company generates revenue through API integration fees imposed on third parties. Despite the dip in revenue, Exodus managed to reduce costs by 6% year-over-year to $7.1 million in the second quarter. This reduction was attributed to lower headcount and cloud infrastructure expenses. In comparison, Exodus had around 195 full-time employees by the end of June 2023, a decline from the 290 employees it had in 2019.
To navigate the bear market, Exodus also slashed administrative and marketing expenses by 65% during the quarter, resulting in $4 million in expenses. General and administrative expenses in total represented 32.2% of the company's revenue, a significant drop from the 87. 1% seen in the second quarter of 2022.
As of June 30, Exodus held approximately $55 million in cash, cash equivalents, and US Treasury bills, alongside about $46.2 million worth of Bitcoin. This makes Exodus one of the few publicly traded companies that hold more than 1,000 Bitcoin in their corporate vaults. The company recently integrated with Robinhood Connect, allowing users to purchase and hold cryptocurrencies in Exodus through Robinhood Cash and buying power. Exodus also expanded its support to include Arbitrum and Optimism, as well as Matic staking. Looking ahead, Exodus aims to provide its technology to other businesses, often referred to as "wallet-as-a-service" or "infrastructure-as-a-service."
