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1) Some notes from

's Q3 earnings! s27.q4cdn.com/397450999/file

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2) First, how have they (and others!) done recently? Well, they're the yellow line. They had a mediocre Q3, but they're probably in line for a good Q4!

10:49 PM · Nov 9, 2021Twitter Web App

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3) So how did they do? Well, they made $1.2b of revenue and $600m of EBITDA. As always, that is nearly all retail; average retail fees were 1%. On the mobile app, average fees were probably higher, and that was probably where most of it came from.

SBF

@SBF_FTX

Nov 9, 2021

4) How about the other ~20% of their reveune? Well, ~8% ($80m) came from 'blockchain rewards', which here mostly means staking revenue (e.g. ETH2). But: they also booked $1978 of "transaction expenses", mostly from ETH2 staking. Because it was *gross* revenue. Net was lower.

SBF

@SBF_FTX

Nov 9, 2021

5) And the expenses? They're paying ~$4b/year in expenses. ~60% of that is 'Tech' or 'G&A', both of which seem to probably most be headcount? There are ~2.7k full-time employees, so ~$1m/year/FTE.

SBF

@SBF_FTX

Nov 9, 2021

6) But the most interesting is 'Other operating expenses', a cool $500m/year. And those seem to be user compensation from downtime. That's a lot of user compensation!