Coinbase Misses Q1 Revenue Forecasts Amid Drop in Trading Volume
Coinbase reported a 10% decline in total revenues quarter-over-quarter, totaling $2 billion, which fell short of analyst expectations of $2.12 billion. Net income decreased by 94% to $66 million compared to the previous quarter. Earnings per share dropped from $4.84 to $0.26 year-over-year. The decline in retail trading activity coincided with a challenging quarter for cryptocurrencies, influenced by macroeconomic uncertainties and trade tariffs. Bitcoin's value fell approximately 10% during the quarter but rebounded to over $102,000 in April. Coinbase generated $1.26 billion from its trading business, down 19% quarter-over-quarter, with trading accounting for over 60% of total revenue. The company acquired derivatives exchange Deribit for $2.9 billion to expand its offerings. Coinbase's stock closed at $206.50, down 20% year-to-date. Revenue from a partnership with Circle increased to $297 million, driven by growing USDC adoption, which is expected to enhance future revenue streams. Coinbase is also investing in its layer-2 network, Base, to bolster its business strategy.
