Coinbase Q1 Earnings Highlights: Revenue Beat, EPS Beat, Ethereum Volume Drops, And More

Cryptocurrency platform Coinbase Global Inc COIN reported first-quarter financial results after market close Thursday. Here are the key highlights.

What Happened: Coinbase reported net revenue of $736.4 million in the first quarter. Total revenue of $772.5 million beat a Street estimate of $649.4 million, according to data from Benzinga Pro. Net revenue was up 22% quarter-over-quarter.

The company reported a loss of 96 cents per share in the first quarter, which beat a Street consensus estimate of a loss of $1.36 per share.

Transaction revenue totaled $374.7 million in the first quarter, up 16% quarter-over-quarter.

Subscription and services revenue was $361.7 million in the first quarter, which was up 28% quarter-over-quarter.

In the first quarter, Bitcoin BTC/USD represented 32% of trading volume, compared to 35% in the fourth quarter. Ethereum ETH/USD represented 24% of trading volume in the first quarter, compared to 33% in the fourth quarter.

Trading volume in the first quarter was $145 billion, which was flat compared to the fourth quarter. Consumer trading volume was up 5% quarter-over-quarter in the first quarter.

“There is no doubt Coinbase is in a stronger business position as a result of these efforts. We say this irrespective of the Wells Notice we recently received from the SEC. We see this as an opportunity to continue pushing for a clear rule book in the US for crypto regulations,” the company said.

Related Link: Trading Strategies For Coinbase Stock After Q1 Earnings

What’s Next: Coinbase is guiding for second quarter subscription and services revenue to be around $300 million. The company said its second-quarter subscription and services revenue will be lower due to the market capitalization of USDC USDC/USD.

The company said the cryptocurrency market remains highly volatile, and the recent events around disruptions in the banking sector and regulatory uncertainty make it hard to predict future results.

“While we can’t predict the outcome of these events, we continue to focus on our cost reduction efforts and to operate towards our goal of improving Adjusted EBITDA in absolute dollar terms versus full-year 2022,” the company said.

COIN Price Action: Coinbase shares are up 7% to $52.54 in after-hours trading Thursday. 

Read Next: Coinbase Q1 Earnings Preview: What Analysts Are Syaing, SEC Regulation, Other Items To Watch 

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