Coinbase Inc. (NASDAQ: COIN) released its first-quarter earnings for FY22 after the market closed on Tuesday. The company reported a revenue of $1.17 billion and an EPS of $1.98, missing analyst estimates. COIN stock closed at $72.99 down 12.6% and fell a further 15% during after hours following the announcement. Coinbase’s report comes amidst a market-wide sell-off.
Here is an overview of the latest disclosure.
- Revenue: $1.17 billion reported vs. $1.47 billion expected
- EPS: -$1.98 vs. $0.17 expected
- Monthly transacting users: 9.2 million vs 9.5 million estimate
- Trading volume: $309 billion vs $335.6 billion estimate
The Zacks Consensus Estimate for the loss per share was pinned at $0.17. This indicated a massive drop of 94.43% year-over-year. Moreover, it also suggested a huge decline of 94.87% than that of the last quarter.
The Earnings Expected Surprise Prediction was 37.93%, which suggested that the consensus strongly expected Coinbase to meet as well as beat the estimates for the first quarter. Moreover, the estimated revenue was pegged at $1.47 billion. This suggested a substantial decline of 18.45% year-over-year.
Coinbase’s fourth-quarter and full year FY21 highlights:
- Grew market share of Trading Volume: In 2021, our Trading Volume grew more than 8.5x compared to 2020, and our market share of Trading Volume increased in virtually all assets.
- Revenue diversification:
- Generated over $500 million in Subscription and services revenues – including over $200 million in the fourth quarter – with traction in products including Staking, Earn, and Custody.
- Grew the Institutional customer base by over 50%, including doubling the number of Custody customers, and launched Coinbase Prime, our integrated solution for institutional crypto needs.
- Profitable growth: In 2021, we generated $3.6 billion in net income, up 11x compared to 2020.
Zacks analysts estimate the earnings to be at $0.06 per share in the second quarter of FY22, indicating a huge decline of 99.07% year-over-year. Moreover, the revenue is estimated at $1.45 billion, indicating a substantial decrease of 35.10% from year-over-year.