Market Analysis Report (11 May 2022)

Coinbase has reported first-quarter results that missed analysts’ revenue estimates after the bell.  The cryptocurrency exchanges revenue dropped to $1.17 billion, compared to analysts’ average estimate of $1.5 billion.

The firm’s overall trading volumes have fallen 44% from Q4 of 2021, which has led to a quarterly net loss of $430 million, compared to a profit of $840 million in the fourth quarter. Monthly transacting users (MTUs) on Coinbase were 9.2 million, compared to 11.4 million in the fourth quarter.

Going forward, Coinbase said it expects lower MTUs in the second quarter. The exchange sees subscription and services revenue being “similar to modestly lower,” compared with the first quarter.

Separately, Coinbase filed a shelf registration with the U.S. Securities and Exchange Commission (SEC). In a blog post, the firm wrote that it has no immediate plans to offer securities, but added that “by filing the shelf registration statement now, we will be able to offer and sell securities in the future should we choose to do so.”