Coinbase Global Inc (NASDAQ: COIN) reported weaker-than-expected results for its fiscal first quarter on Tuesday. Shares sunk more than 15% in after-hours trading.
Key takeaways from Coinbase Q1 earnings report
- $430 million loss was significantly worse than $388 million net income last year.
- Per-share loss came in at $1.98 versus the year-ago EPS of $3.05.
- Revenue tanked 27% YoY to $1.17 billion, as per the earnings press release.
- FactSet consensus was for 1 cent of per-share loss on $1.50 billion in revenue.
- Trading volume of $309 billion in Q1 was down 44% sequentially.
- Lost 2.20 million monthly transacting users in the recent fiscal quarter.
The Nasdaq-listed company cited low volatility and prices for crypto assets for weak results. According to Coinbase, Bitcoin and Ethereum combined represented 45% of overall volume in Q1 versus 32% in the prior quarter.
What Coinbase expects for the current fiscal quarter
Coinbase expects trading volume and monthly transacting users to sink further in the current financial quarter. It also warns the subscription and services revenue could modestly slide in Q2. In its letter to shareholders, the company said:
We’re encouraged by several key developments, including 54% of our MTUs engaging with a non-investing product in Q1. In the first quarter, the most popular non-investing product adopted by our users was staking.
A day earlier, BTIG’s Mark Palmer said Coinbase could eventually be a $500 stock.
The post Coinbase Q1 results: ‘we’re encouraged by several key developments’ appeared first on Invezz.
Source: https://invezz.com/news/2022/05/10/coinbase-q1-results-were-encouraged-by-several-key-developments/