Coinbase Stock Takes a Hit as Revenue Slips Despite Bitcoin Surge

Coinbase Stock Takes A Knock As Revenue Falls

  • Fourth-quarter sales earnings: Coinbase (COIN) reported fourth-quarter sales earnings of $605 million, a 5% increase from the third quarter.
  • Transaction volume decreased: Overall trading volume dropped by 12% from one quarter to the next to $322 million.
  • Subscription and service sales increased: Subscription and service sales increased 34%, reaching $283 million in Q4.

Q4 Earnings Exceed Analyst Expectations

Coinbase (COIN) reported fourth-quarter sales earnings of $605 million, which exceeded analyst expectations of $588 million. Their normalized loss of $2.46 for every unit for the quarter outperformed FactSet’s forecast of a loss of $2.52 per share. In Tuesday’s after-hours trading, shares of Coinbase increased by around 0.9% to $62.60. Despite this surge in value, Coinbase shares are still down 67% year-over-year due to reduced overall trading volume.

Subscriptions & Services Contribute Half Of Total Revenue

A focal area for the corporation, subscription and service sales increased 34% quarter by quarter, reaching $283 million in Q4. About half of the total revenue in Q4 came from subscriptions and services, mostly as a result of interest income which totaled $162.2 million.

„Crypto Markets Have Strengthened“ In Q1

According to a letter to shareholders from Coinbase, the crypto markets have strengthened so far in Q1 relative to Q4, which will enable the business to earn an estimated processing profit of $120 million in Jan 2023. Furthermore, they anticipate profiting from further regulation on cryptocurrencies both domestically and internationally as countries such as Brazil, UK and India have created precise regulations for regulating cryptocurrency activities within their borders.

„Disjointed Strategy“ To Regulating Cryptocurrencies In The US