Coinbase Q1 2022 Earnings Report Reveals Huge Loss
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Coinbase Records Net Loss of $430M for Q1 2022
In a recently released earnings report for the first quarter of 2022, Coinbase disclosed that it incurred a Q1 loss of $430 million compared to an $840 million profit in Q4 2021. At the same time, trading volumes came in at $309 billion for the period, down from Q4 2021's $547 billion.
The company further revealed that it pulled in $1.17 billion in revenue, well short of the $2.5 billion it took in Q4, and far below analysts' Q1 predictions of $1.5 billion.
"The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results," the company said.
Coinbase Stock Plummets Following Earnings Reveal
The release of the Q1 2022 report caused Coinbase shares, which had closed the trading day around $73, drop down to as low as $62 in after-hours trading. Shares of the company dropped about 70% year-to-date to $72.99, well below the reference price of $250 indicated at the time of listing.
Despite the disappointing financial results, Coinbase remains optimistic over the long term in its Q1 letter to shareholders.
“We believe these market conditions are not permanent and we remain focused on the long term,’ they added.