The results are another bad news for the crypto markets
Coinbase released its earnings for the first quarter of 2022, and the results will do little to improve the current lackluster mood in the crypto markets.
The company revealed that it generated $1.17 billion in revenue, well below the $2.5 billion it took in in the fourth quarter, and well below analysts’ forecast for the first quarter of 1 .5 billion dollars.
Meanwhile, Coinbase posted a quarterly loss of $430 million. The size of the loss – its first as a public company – was also unexpected as analysts had predicted its earnings would be close to breakeven.
Despite the disappointing financial results, Coinbase issued an optimistic note in its first quarter letter to shareholders.
“The first quarter of 2022 continued a trend of both declining crypto asset prices and volatility that began in late 2021. These market conditions had a direct impact on our first quarter results. But we are entered these market conditions with forethought and preparation, and remain as excited as ever about the future of crypto,” the letter read, ending with #wagmi — a crypto acronym for “we’re all going to get there.”
The company had warned investors in its last earnings release to expect weaker results due to an expected decline in trading.
While the recent turmoil in the crypto markets will likely boost Coinbase’s revenue as the company benefits from volatility both ways, this activity took place in April and May and is therefore not reflected in the numbers for the first. trimester.
Coinbase stock, which at one point last year eclipsed $350, has been in the doldrums for months and has fallen dramatically in recent days during the broader crypto market selloff. Prior to the earnings release, it was trading around $73.
Coinbase executives will provide more earnings details and answer questions from analysts during an earnings call scheduled for 5:30 p.m. ET.
This post will be updated with more details shortly.
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