Coinbase Shares Crash After Company Missed Q1 Revenue Predictions

The Coinbase shares crash after the company missed the Q1 revenue and profit prediction for this year so let’s read more today in our latest Coinbase news today.

The Coinbase shares crash after the company analyst missed the Q1 earnings and revenue predictions. The exchange released the earnings for the first quarter of 2022 and the results didn’t do much to improve the mood in the markets. The company disclosed that it pulled in $1.17 billion in revenue which is short of the $2.5 billion that it took in Q4 and below the analysts’ predictions of $1.5 billion.

In the meantime, Coinbase posted a quarterly loss of $430 million and the scope of the loss was quite unexpected as analysts predicted the earnings would be bigger. Coinbase also missed the key metrics of the monthly transacting users which dropped from 11.4 last quarter to a 9.2million in the first quarter. The results caused the Coinbase shares to drop as low as $62 from the preivous $73 in after-hours trading. The latest drop came after Coinbase and other BTC-exposed shares entered a free fall in response to the week’s meltdown in the markets.

The share price is a far cry from the company’s public market debut last year when the stocks traded for $350. despite the bad results, Coinbase struck quite the note in the Q1 letter to shareholders:

“The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results. But, we entered these market conditions with foresight and preparation, and remain as excited as ever about the future of crypto, #wagmi.”

The company warned investors during the latest earnings release to expect softer results because of the drop-off in trading. The recent turmoil in the markets will pad Coinbase’s revenue since the company benefits from heavy volatility in either direction and both the April and May market declines were not included in the Q1 figures.
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The Coinbase VP of investor Relations Anil Gupta said that the company is in an excellent position to weather the downturn and doesn’t intend to change this direction:

“We don’t have infinite runway, but we have plenty of gas in the tank.”

Gupta was cited saying that 5 million users that are now using Coinbase products are also bringing up to the growing popularity of staking on the platform. Chinese executives will give more details about the results and will answer analyst questions on the earnings call scheduled for 5:30 pm ET.