Coinbase (COIN) Q1 2022 revenue

Monitors show Coinbase signage during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S. on Wednesday, April 14, 2021.

Michael Nagle | Bloomberg | Getty Images

Coinbase reported first-quarter results that missed analysts’ estimates after the bell on Tuesday. Shares fell as much as 19% in extended trading, before rebounding. The stock is now down about 12% after hours.

Here are the key numbers:

  • Loss per share (EPS): $1.98
  • Revenue: $1.17 billion, vs $1.48 billion expected, according to Refinitiv

Prior to the report, the stock had lost more than 60% of its value since late March, as a broader drop in tech stocks and cryptocurrency values ​​hit Coinbase particularly hard. Bitcoin broke below the symbolic price threshold of $30,000 on Monday.

Overall usage was down from the fourth quarter. Retail monthly transaction users (MTUs) fell to 9.2 million from 11.4 million in the fourth quarter, while total transaction volume rose to $309 billion from $547 billion in the fourth quarter.

The company’s revenue fell 27% from a year ago and also posted a net loss of $430 million in the first quarter.

But Coinbase doesn’t seem to be worried about its long-term prospects. The company doubled down on an argument it has previously made, reminding shareholders that its stock should be viewed as a long-term investment due to the volatile nature of cryptocurrency price movements.

“We believe these market conditions are not permanent and we remain focused on the long term,” the company wrote in a letter to shareholders accompanying its earnings release. He also said he is focused on the next generation of crypto opportunities beyond trading.

“As we continue to invest and improve our core investment platform, the era of crypto applications is upon us, led by NFDs and decentralized finance, and we are increasingly focusing our efforts on these market opportunities.

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