Coinbase (COIN) reported quarterly results which missed on revenue estimates, trading volume, and monthly transacting users. The print released on Tuesday after the closing bell was closely watched by crypto bulls after Bitcoin (BTC-USD) briefly fell below the $30,000 level earlier.
The stock sank 12% in after-hours after falling during Tuesday’s session. The cryptocurrency exchange stock dropped 18% on Monday, it’s biggest daily drop ever, after Bitcoin tanked to its lowest level since July 2021.
These are Coinbase’s first quarter results compared with Wall Street analysts estimates as compiled by Bloomberg:
Revenue: $1.17 billion vs $1.48 billion estimate
Monthly transacting users: 9.2 million vs 9.5 million estimate
Trading volume: $309 billion vs $335.6 billion estimate
Earnings (loss) per share: ($1.98) vs $3.80 last year
“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,” stated the company’s letter to shareholders.
Wall Street analysts were keeping a keen eye crypto trading volumes. In February, Coinbase warned that volumes in the first three months of 2022 would decline from the same period a year ago.
The company highlighted its wallet product and initiatives with non-fungible tokens, or NFTs.
“We are investing heavily in products such as Coinbase Wallet and Coinbase NFT to help us emerge as a leader in these new markets. We are in a strong position to help drive and lead crypto’s next phase, and that’s where our investments will be focused,” stated the shareholder letter.
Digital assets have faced a rough few months along with equities. The overall markets have been on a downward trend since the Federal Reserve began a cycle of monetary policy tightening.
Bitcoin, which had been seen as “digital gold” and a hedge against inflation by crypto bulls, has been recently moving in tandem with the Nasdaq (^IXIC) index.
Bitcoin is down 34% year-to-date, and the Nasdaq is down 26%.
The crypto exchange went public last year via a direct listing. Shares opened at $381 and ballooned as high as $429. Coinbase’s stock touched a 52-week high of $368 last year. On Monday, it close at its lowest level ever.
Coinbase has 23 Buy recommendations, 4 Hold, and 4 Sell, with an average price target of $261.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre