Coinbase reported weaker-than-expected results in the first quarter due to falling crypto prices, weighing on spot trading of digital assets, one of the company’s main revenue drivers.
Here’s how to do it coinbase Based on a survey of analysts by LSEG, results for the quarter ended March 31 compared to Wall Street expectations:
Earnings per share: $1.49 loss vs. 27 cents profit (estimated) Revenue: $1.41 billion vs. $1.52 billion (estimated)
The company, which operates the largest U.S. cryptocurrency market, posted trading revenue of $755.8 million, compared to analysts’ expectations of $805.2 million. Subscription revenue was $583.5 million, compared to expectations of $619.3 million.
Investors were bracing for a sharp slowdown in trading volumes following a slump in crypto prices at the beginning of the year. Bitcoin It increased by 12% in March, but fell by 22% in the first quarter.
Primarily known for its crypto trading platform, Coinbase is diversifying its revenue streams through subscription and services businesses, including revenue from stablecoins and staking. Investors are looking for evidence that Coinbase can still make a profit even when trading dries up. We also look forward to a progress report on when the company’s non-trading business will be large enough to offset the cyclicality of trading fees during economic downturns.
Following this week’s announcement that Coinbase will cut about 14% of its workforce, or 700 people, investors will be listening closely for commentary on margins and management discipline. The company noted that the layoffs were part of a broader AI-driven restructuring effort and cited the weakness in cryptocurrencies as a contributing factor.
The latest job cuts confirmed expectations that weak trading conditions could continue into the second quarter.
Read Coinbase’s full shareholder letter here.
This story is developing. Please check back for future updates.
