Coinbase (COIN) earnings Q4 2021
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Monitors show Coinbase signs during the company’s initial public offer (IPO) at Nasdaq MarketSite, New York, U.S.A, Wednesday, April 14, 2020.
Michael Nagle | Bloomberg | Getty Images
Coinbase reported fourth-quarter earningsAfter the bell on Thursday, analysts had predicted that this would beat them. After the report, shares bounced about. After hours of waiting for analysts to call, they were about 2% lower.
Below are some key numbers
- Earnings per Share (EPS) $3.32, A Refinitiv survey showed that analysts expected $1.85, compared to the $1.25 average
- Revenue: According to Refinitiv: $2.5 Billion versus the $1.94 Billion expected
According to the company, retail monthly transaction users (MTUs), and total trading volume will be lower for Q1 2022 than Q4 2021. Coinbase said the decrease in volatility of crypto assets and 20% decline in cryptocurrency market capitalization over quarter to date can be attributed to this change. According to Coinbase, the decline in market capitalization is due to macroeconomic factors such as geopolitical instability or the U.S. Federal Reserve signaling tightening financial conditions.
Coinbase predicts lower subscriptions revenue and services revenue in the first quarter due to crypto asset price drops.
The fourth quarter saw MTUs grow to 11.4million in Q1, up 7.4 million from Q3. After Coinbase reported a drop in MTUs during Q2 and Q3, this result was achieved.
This report is coming after major cryptocurrency markets saw December be a slow month despite a general increase in value for 2021. Investors blamedSlowing down at the end of 2018 was due to concern about cryptocurrency’s energy use and macroeconomic factors, such as the rise in the omicron Covid version.
Coinbase warned shareholders in the previous quarterIts stock is a good long-term investment, as its business has been “volatile”.
It’s what major cryptocurrencies such as bitcoin have shown in recent weeks. fell amid concerns that Russian troops would invade Ukraine. Some analysts have questioned the possibility that bitcoin might be able to do this. act as a safe-haven currencyIn times of geopolitical instability
As of Wednesday, Coinbase shares had fallen by 31% over the past year.
The story continues to develop. Keep checking back for more updates.
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