Coinbase misses Q1 estimates, trading volume drops 44 pc
Coinbase missed revenue earnings by nearly $400 million, and posted a Q1 net loss of $430 million compared to a net profit of $840 million from the previous quarter.
Despite pessimistic estimates from Wall Street analysts, American cryptocurrency exchange reported lower than expected revenue, larger than expected losses and a 44 percent decline in trading volumes in Q1 compared to the previous quarter.
As the prices of cryptocurrencies have been tumbling from their highs in late 2021, Coinbase's public market capitalisation has also taken a hit. It fell about 15 percent in aftermarket trading due to the announcement, and is down 71 percent year-to-date.
Analysts' average estimates expected the crypto exchange to hit revenues of $1.5 billion for the quarter, along with trading volumes of $331.2 billion. Instead, Coinbase reported a revenue of $1.17 billion and trading volumes of $309 billion. In addition, the company posted a net loss of $430 million compared to $840 million net profit in the previous quarter.
In a statement accompanying the earnings, Coinbase announced that they are still focussed on building the future of the company. They have recently launched an NFT marketplace, as well as filed for the ability to offer securities in the future.
Edited by Anju Narayanan
