GoKawiilCoinbase posted lower-than-expected results for the first quarter as crypto prices fell, weighing on one of the companies' major revenue drivers — spot trading in digital assets .
Here's how Coinbase performed in its quarter ended March 31, compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.49 loss vs. 27 cent profit (estimated)
$1.49 loss vs. 27 cent profit (estimated) Revenue: $1.41 billion vs. $1.52 billion (est.)
Coinbase shares were recently down 4% in postmarket trading.
The company, which operates the largest cryptocurrency marketplace in the U.S., posted transaction revenue of $755.8 million versus $805.2 million expected by analysts. Subscription revenue came in at $583.5 million versus $619.3 million estimated.
Investors were bracing for a sharp slowdown in trading volume given the crypto price slump at the start of the year. Bitcoin rose 12% in March, but posted a 22% decline in the first quarter.
Coinbase, known largely for its cryptocurrency trading platform, is trying to diversify its revenue streams through subscription and services businesses, which includes revenue from stablecoins and staking.
Investors are looking to signs of whether Coinbase can still make money when crypto trading pulls back. Crucial to that effort is Coinbase's success in strengthening non-transaction businesses in order to offset the cyclicality of transaction fees during slowdowns.
More than a crypto company
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