Coinbase Q1 revenue falls 10%, misses estimates amid a slump in trading activity
The post Coinbase Q1 revenue falls 10%, misses estimates amid a slump in trading activity appeared on BitcoinEthereumNews.com. Coinbase, the largest publicly traded cryptocurrency exchange in the U.S., reported a 10% drop in first-quarter revenue, missing Wall Street expectations. The company blamed the dip on reduced trading activity despite a broad recovery in the crypto market. The total revenue in the quarter was about $2.03 billion, below analysts’ estimated $2.2 billion, a 10% decline from the previous quarter. The price of Bitcoin climbed to nearly $100,000 during the quarter, but the rally did not prompt enough user activity to lift trading revenue. As a result, transaction revenue declined, settling at $1.26 billion below the estimated $1.33 billion. Historically, this core segment was the company’s bread and butter—it underperformed as retail investors remained cautious and institutional activity slowed. However, Coinbase managed to rack up points in its stablecoin sector, with revenue rising 32% Q/Q and the average USDC balance across its products jumping 49% Q/Q to $12 billion. Total revenue rose to $2.03 billion from $1.64 billion a year earlier. That still missed analysts’ expectations of $2.1 billion, according to data compiled by LSEG. The company earned an adjusted net income of $526.6 million, or $1.94 per share, for the three months ended March 31, compared with $679.2 million, or $2.53 per share, a year earlier. Higher expenses drive down Coinbase earnings The earnings report also disclosed that operating expenses spiked 51% year-over-year to $1.3 billion. The spike was fueled mainly by increased marketing expenses and write-downs related to crypto assets held for operational use. The higher outlays weighed heavily on profits. Coinbase recorded an adjusted net income of $526.6 million, or $1.94 a share, well below $679.2 million, or $2.53 a share, in the same quarter last year. The company said that macroeconomic uncertainty and reduced trading demand were among the factors that had affected user engagement. However, market…
The post Coinbase Q1 revenue falls 10%, misses estimates amid a slump in trading activity appeared on BitcoinEthereumNews.com.
Coinbase, the largest publicly traded cryptocurrency exchange in the U.S., reported a 10% drop in first-quarter revenue, missing Wall Street expectations. The company blamed the dip on reduced trading activity despite a broad recovery in the crypto market. The total revenue in the quarter was about $2.03 billion, below analysts’ estimated $2.2 billion, a 10% decline from the previous quarter. The price of Bitcoin climbed to nearly $100,000 during the quarter, but the rally did not prompt enough user activity to lift trading revenue. As a result, transaction revenue declined, settling at $1.26 billion below the estimated $1.33 billion. Historically, this core segment was the company’s bread and butter—it underperformed as retail investors remained cautious and institutional activity slowed. However, Coinbase managed to rack up points in its stablecoin sector, with revenue rising 32% Q/Q and the average USDC balance across its products jumping 49% Q/Q to $12 billion. Total revenue rose to $2.03 billion from $1.64 billion a year earlier. That still missed analysts’ expectations of $2.1 billion, according to data compiled by LSEG. The company earned an adjusted net income of $526.6 million, or $1.94 per share, for the three months ended March 31, compared with $679.2 million, or $2.53 per share, a year earlier. Higher expenses drive down Coinbase earnings The earnings report also disclosed that operating expenses spiked 51% year-over-year to $1.3 billion. The spike was fueled mainly by increased marketing expenses and write-downs related to crypto assets held for operational use. The higher outlays weighed heavily on profits. Coinbase recorded an adjusted net income of $526.6 million, or $1.94 a share, well below $679.2 million, or $2.53 a share, in the same quarter last year. The company said that macroeconomic uncertainty and reduced trading demand were among the factors that had affected user engagement. However, market…
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