Earnings Results: Coinbase stock rises as Q1 results beat, but company warns bank disruptions are rattling crypto

by | May 4, 2023 | Stock Market

Shares of Coinbase Global Inc. rose in extended trading Thursday after the cryptocurrency exchange reported first-quarter results that topped expectations, although the company warned of lower subscription and services revenue and said that the current tremors in the banking industry made for a “volatile” backdrop. The company reported a first-quarter net loss of $78.9 million, or 34 cents a share, compared with $429.7 million, or $1.98 a share, in the same quarter last year. Revenue fell to $772.5 million, compared with $1.17 billion in the prior-year quarter. Trading volumes came in at $145 billion.

Analysts polled by FactSet expected Coinbase
to report a per-share loss of $1.45, on revenue of $655 million. They expected trading volume of $147.7 billion. “The crypto industry continues to be volatile, as evidenced most recently by the disruptions in the banking sector and ongoing regulatory uncertainty,” executives said in the company’s letter to shareholders. “While we can’t predict the outcome of these events, we continue to focus on our cost-reduction efforts,” while trying to boost adjusted profits. Shares rose 6.6% in after-hours trade. The price of bitcoin
rose 1.5% to $26,826 on Thursday. For the second quarter, Coinbase executives said they expected subscription and services revenue of around $300 million. “We anticipate a sequential decline in subscription and services revenue, largely driven by the decline in USDC market cap,” the company said …

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