Coinbase Revenue Beats Expectations & Trading Volume Decline

Coinbase Posts Better Revenues than Analysts Estimates, but Expects Lower Trading Volume in the First Quarter

Coinbase reported fourth-quarter earnings that beat Wall Street analysts’ expectations, pushing its stock higher, but it fell 5% in extended trading following the end of the CEO conference.

Coinbase earned $3.32 per share, beating expectations of $1.85 per share, and revenue also beat analyst estimates of $2.5 billion, compared to expectations of $1.94 billion.

The company expects MTUs and total trading volume to be lower in the first quarter than in the previous quarter, and Coinbase attributed the change to weak crypto-asset volatility and a drop in cryptocurrency market cap by around 20%. Read more [Russia-Ukraine Conflict Costs The Crypto Market About $140B].

The issue of the decline in the market value of cryptocurrencies is due to major economic factors, including geopolitical instability and the Federal Reserve’s indication of tightening financial policies, and Coinbase stated that it expects revenue from services and subscriptions to be weaker during the current quarter due to the decline in encrypted asset prices.

The number of monthly trading users jumped from 7.4 million during the third quarter to 11.4 million users during the last quarter, noting that Coinbase suffered a decline in the number of MTUs during the second and third quarters, and the company also revealed that net income nearly doubled compared to the third quarter after rising to 840 Millions of dollars in the fourth quarter, several times higher than the same quarter a year ago, when Coinbase earned just $177 million. Read More [Coinbase Shares Sharply Fall After Third Quarter Results].

Coinbase warned in a letter to shareholders that 2022 will continue to be a foggy and uncertain year for its business, but on the other hand, it expects the opportunity to increase and the extent of cryptocurrency adoption in general.

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