Coinbase revenue falls 10% in Q1, missing industry estimate
Coinbase's total revenue decreased by 10% quarter-over-quarter to $2 billion in Q1, missing estimates by 4.1%. Net income plummeted 95% to $66 million, largely due to a $596 million paper loss on crypto holdings. Earnings per share were $1.94, surpassing the Zacks Consensus Estimate of $1.85. Transaction revenue fell 18.9% to $1.26 billion, with trading volumes down 10.5% to $393 billion, attributed to a decline in crypto market cap. Subscription and services revenue increased by 8.9% to $698.1 million, driven by stablecoin revenue. Coinbase gained market share in global trading and expanded into emerging markets like Argentina and India. The dismissal of a lawsuit with the US securities regulator was seen as a win for regulatory balance. Coinbase announced the acquisition of crypto derivatives platform Deribit for $2.9 billion, enhancing its position in the derivatives market. This deal led to a 5.1% rise in Coinbase's share price on May 8, despite a subsequent 3.1% drop in after-hours trading.
