Coinbase’s Reports Significant Drop in Q1 Results
Coinbase Global (COIN) first-quarter revenue was announced on Tuesday, missing analyst estimates, as its overall trading volumes dropped 44% from the last quarter.
As analysts’ average estimate was $1.5 billion in revenue for the first quarter, the Nasdaq-listed crypto platform fell short significantly with only $1.17 billion.
To make matters worse, Coinbase also incurred a quarterly net loss of $430 million, while turning a $840 million profit in the previous quarter.
Numbers went down across the board with trading volume and monthly transacting users (MTUs) both seeing a significant drop.
Q1 ’22 financial results are in.
Check out our letter to shareholders here
https://t.co/4oxQcGt4yh
— Coinbase (@coinbase) May 10, 2022
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Looking ahead to the second quarter, Coinbase said it is expecting lower MTUs and total trading volume compared to the recently released first quarter figures.
In a statement Coinbase said that its plans for 2022 remain unchanged and that it is committed to invest significantly in “building the future of crypto.”
“While we are navigating uncertain and volatile markets, we have a decade of experience to draw from and will continue to invest wisely to drive long-term growth.
We continue to expect that during a prolonged and stressful scenario for our business, we will aim to manage our 2022 potential Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) losses to approximately $500 million on a full-year basis.”
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Source: igaming
