Coinbase Global Inc (NASDAQ:COIN) missed first-quarter revenue estimates as trading volumes dropped on its cryptocurrency trading platform and swung
Coinbase Global Inc (NASDAQ:COIN) missed first-quarter revenue estimates as trading volumes dropped on its cryptocurrency trading platform and swung to a loss, pulling its shares down about 16% after the close of regular trading.
Total trading volume fell 44% from the fourth quarter of 2021 to US$309bn, with monthly users down 2mln to 9.2mln. The company said the trading volume decline was consistent with the broader crypto spot market, which also dropped 44%.
First-quarter revenue sank 53% to US$1.17 billion, missing market expectations of about US$1.5bn, as Coinbase swung to a net loss of US$430mln from a US$840mln profit in the last quarter of 2021.
US-listed Coinbase also reported a weaker start to the current quarter.
“In April, we saw continued declines in both crypto asset volatility and crypto asset prices, which we believe are associated with weakness in financial markets,” it said.
It expects trading volume and monthly users to continue to decline in the second quarter.
However, the company said its full-year outlook remained “largely unchanged”.
“We plan to invest significantly, yet prudently, throughout this year to continue building the future of crypto,” it said.
Coinbase said it was encouraged by the increasing role crypto plays in the world, and believes it is “at a point in our evolution where need to continue investing to drive growth and help grow our sector”.
www.proactiveinvestors.com