Home Trading Coinbase Misses Earnings Estimates, COIN Drops To All-Time Low – CoinCheckup Blog

Coinbase Misses Earnings Estimates, COIN Drops To All-Time Low – CoinCheckup Blog


Key takeaways:

  • Coinbase released its business results for the first quarter of 2022
  • Trading volume, user activity, and revenue were all down in the first quarter of this year compared to the last quarter of 2022
  • The price of Coinbase stock hit an all-time low of $52.80 on the news

Coinbase misses revenue estimates by $310 million

On Tuesday, Coinbase crypto exchange published its Q1 2022 business results. The US-based publicly traded exchange reported a significant drop in both user activity and trading volume.

According to the quarterly earnings call report, the number of retail monthly transaction users (MTUs) dropped from 11.4 million in Q4 2021 to 9.2 million. At the same time, the total trading volume facilitated by Coinbase slid from $547 billion in Q4 to $309 billion in Q1. 

In contrast to the estimated revenue of $1.48 billion, Coinbase’s real revenue reached only $1.17 billion, for a total discrepancy of $310 million. The negative business metrics led to a net loss of $430 million during the first quarter of 2022.

The latest quarterly results come as a stark contrast to Coinbase’s previous earnings call in which the exchange reported record-breaking revenue of $2.49 billion. It is worth noting that the US-based trading platform did point out at the time that it expects the growth to stall in Q1 2022.

As a result of poor business results, the price of Coinbase stock plummeted by 15% on Tuesday and hit an all-time low of $52.80 per share. Due to broader negative market sentiment and retracement in the value of virtually all digital assets this year, the Coinbase stock is now changing hands down over 75% year to date.

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