Coinbase posted lower-than-expected results for the first quarter as crypto prices fell, weighing on one of the companies’ major revenue drivers — spot trading in digital assets .
Here’s how Coinbase performed in its quarter ended March 31, compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.49 loss vs. 27 cent profit (estimated)
- Revenue: $1.41 billion vs. $1.52 billion (est.)
Coinbase shares were recently down 4% in postmarket trading.
The company, which operates the largest cryptocurrency marketplace in the U.S., posted transaction revenue of $755.8 million versus $805.2 million expected by analysts. Subscription revenue came in at $583.5 million versus $619.3 million expected.
Investors were bracing for a sharp slowdown in trading volume given the crypto price slump at the start of the year. Bitcoin rose 12% in March, but posted a 22% decline in the first quarter.
Coinbase, known largely for its cryptocurrency trading platform, is trying to diversify its revenue streams through its subscription and services business, which includes revenue from stablecoins and staking. Investors are looking for evidence that Coinbase can still make money when trading dries up. They are also hoping for a progress report on when the company’s non-transaction businesses will be large enough to offset the cyclicality of transaction fees during slowdowns.
Investors will listen closely for commentary around margins and operating discipline following this week’s announcement that Coinbase will cut roughly 14% of its workforce, or 700 jobs. The company pointed to the layoffs as being part of a broader AI-driven restructuring effort, and it also cited the crypto downturn as a driver.
The job cuts underscore expectations that subdued trading conditions could persist into the second quarter.
Read Coinbase’s full shareholder slide deck here.
This story is developing. Please check back for further updates.
