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 expected
$1.49 loss vs. 27 cent profit expected Revenue: $1.41 billion vs. $1.52 billion expected
Coinbase shares were down 4% in after-hours 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.
Sharp slowdown
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 net income is often distorted by accounting rules that require it to value its large crypto holdings based on whatever the price is at the end of the quarter, causing reported earnings to swing widely even when no assets are sold.
Known largely for its cryptocurrency trading platform, Coinbase is trying to diversify its revenue streams through subscription and services businesses, including revenue from stablecoins and staking.
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