economy
Coinbase posts steep first-quarter loss after slide in crypto prices, shares fall 4%
Crypto trading platform Coinbase reported a surprise first-quarter loss and weaker-than-estimated revenue after the market close Thursday.
TL;DR
- Coinbase reported a Q1 loss of $1.49 per share, contrary to an estimated profit of 27 cents.
- Revenue for the quarter was $1.41 billion, falling short of the $1.52 billion expected.
- Transaction revenue was $755.8 million, below the analyst estimate of $805.2 million.
- Subscription revenue was $583.5 million, less than the $619.3 million estimated.
- The company aims to diversify revenue streams through subscription and services businesses to offset trading cyclicality.
- First-quarter derivatives trading volume increased by 169% year-over-year to roughly $4.2 billion.
- Coinbase forecasts its prediction market business to reach $100 million in annualized revenue by year-end.
- The company recently announced workforce reductions, cutting approximately 14% of its employees, citing AI-driven restructuring and the crypto downturn.
- Job cuts suggest expectations of subdued trading conditions persisting into the second quarter.