Revenue from the 2019 consensus conference is down more than 40 percent from last year

According to The BlockreportsRevenue from CoinDesk's consensus conference is down more than 40% from last year.

It's been blockchain week in New York, and it's all about Consensus 2019. This conference is hosted by well-known overseas blockchain mediaCoinDeskTo hold.

Last year, the platform took the cryptographic ecosystem completely in the wrong direction (think endless ICO group roundtables, ridiculous blockchain apps and glorified ponzi schemes). So much so that this year, new competitors have emerged to try to eat Coindesk's tempting lunch. One of the most notable competitors is Magic Crypto, a very straightforward conference that bills itself as "anti-consensus" and sells for about a tenth of the price of consensus, focusing on cryptography. That, it seems, could hurt CoinDesk's bottom line (and the market).

According to theCoinDeskAccording to my own figures, about 8,800 people attended the 2018 consensus conference, while only about 4,600 attended this year, a 48 percent drop in attendance. We can also estimate the annual revenue consensus by taking into account factors such as the number of tickets sold, cost of tickets, sponsorship amount and sponsorship cost. All of this is public. Most of the convention's revenue comes from ticket sales. CoinDesk gives away about 15 percent of its tickets to sponsors and another 15 percent to journalists, speakers and vips. That means only about 70% of participants paid for the tickets. Regular tickets cost $2,000, and discounts are offered for group purchase students.

If we assume that the average price of a ticket is $1,500, ticket revenue will be about $3.2 million in 2017, $10.2 million in 2018 and just $4.7 million in 2019.

Another source of revenue is from sponsors. Under the auspices of the conferenceAccording to shang, sponsors are divided into five categories. The most popular type is Block 1, which starts at $10,000, Block 2, which requires $25,000 or more, Block 3, which is quoted at $50,000 or more, Block 4, which is priced at $85,000 or more, and Block 5, which is worth $150,000 or more.

Based on the number of sponsors and these offers, we found that the consensus revenue from the sponsor segment was approximately $2.6 million in 2017, $5.4 million in 2018, and $4 million in 2019 from sponsorship revenue alone.

Based on these hypothetical back-of-the-envelope calculations, then, the 2017 consensus conference will generate revenue of about $5.8 million, $15.6 million in 2018 and $8.7 million in 2019. That means revenue from consensus is down about 44 per cent from last year, but still 50 per cent higher than in 2017.

The estimates for Consensus's 2018 revenues are in line with CoinDesk's reported 2018 event revenues of $21m, including two smaller events, Consensus Invest and Consensus Singapore, which will gross just over $5m.

CoinDeskIt was primarily a media company, with activities like Consensus accounting for about 85 percent of its revenue; It also assists in the creation of content on the site and could help the company turn a profit last year. Of course,CoinDeskThere are two other sources of revenue: advertising revenue from websites (about 10 percent) and licensing from Korean, Japanese and Chinese brands (about 5 percent). That brings CoinDesk's total revenue to $25 million in 2018.

Kevin Worth, chief executive of CoinDesk, said last week that "revenue is going to decline this year" and that "profitability will depend on the rest of the year." That suggests CoinDesk is spending more than the $9 million estimated by Consensus NYC, which is reasonable given that the company employs 40 full-time employees and the high cost of hosting events.

But Kevin Worth points out,CoinDeskThere are no plans to cut jobs this year, and Digital Currency Group, which owns more than 90 per cent of CoinDesk, is "prepared to invest further in the business to expand". There are also rumors that CoinDesk's market price is just $70 million.

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