Shares in both Coinbase Inc. and Block Inc. rose in late trading after both crypto-focused companies surprised with earnings and revenue beats for their quarters that ended March 31.

Coinbase reported a loss per share of 34 cents on revenue of $736 million. The revenue figure was down 33% from the same quarter of last year but up 22% from the previous quarter. Analysts were expecting a loss per share of $1.45 on revenue of $655 million.

Reflecting its efforts to cut costs, Coinbase reported a net loss of $78.9 million in the quarter, down from $429.7 million at the same time last year. Cutting costs is positive, but losing customers isn’t, and Coinbase saw consumer trading volume drop 71% year-over-year, to $21 billion in the quarter, while institution trading volume dropped by nearly half, to $124 billion.

Bitcoin was the most popular cryptocurrency traded on Coinbase in the quarter, accounting for 32% of trading volume and 36% of transaction revenue. Ethereum sat at 24% and 18%, respectively, and other crypto assets accounted for 45% and 46%. Consumer trading volume rose 5% quarter-over-quarter, while institutional trading edged down 1%.

“This quarter represented a turning point in our drive towards building a company that is more efficient and financially disciplined; a company that is able to do more for less,” Coinbase said in a letter to shareholders. “We reduced costs, doubled down on operational excellence and risk management and continue to drive product innovation and regulatory clarity.”

The numbers were well-received, with Coinbase shares up over 9% after the bell.

Block also surprised, reporting adjusted earnings per share of 40 cents on revenue of $4.99 billion, up from 18 cents a share and revenue of $3.96 billion in the same quarter last year. Analysts had expected adjusted earnings of 35 cents on revenue of $4.6 billion.

Adjusted earnings before interest, taxes, depreciation and amortization came in at $368 million, well up on the $268 million expected by analysts.

By product, Square’s Cash App saw a gross profit of $931 million in the quarter, up 49% year-over-year and up from $848 million in the previous quarter. Square brought in $770 million, up 16% year-over-year but down slightly from $801 million in the previous quarter.

For its outlook, Block said that it expected adjusted earnings before interest, taxes, depreciation and amortization of $1.36 billion in fiscal year 2023, up from its previous forecast of $1.3 billion. Adjusted operating losses are expected to be $115 million, down from a previously predicted $150 million. Block shares rose more than 2% in late trading.

Photo: Coinbase