Coinbase’s difficult Q1 results complicate market for crypto startups

Please wait 0 seconds...
Scroll Down and click on Go to Link
Congrats! Link is Generated

Earlier this weekTechCrunch’s Equity podcast noted the chaotic price movements of crypto assets and predicted Coinbase’s earnings later this week could either smoothen or further complicate the path forward for startups in the web3 ecosystem. If Coinbase reported strong numbers, it could calm some concern about another crypto winter, the logic went.

That didn’t happen.

Last night, Coinbase’s first-quarter earnings report sent its already depressed stock plummeting, causing the former public-market darling’s shares to fall further beneath the $100 per-share mark. That’s far, far below the $368.90 all-time high the stock touched last year.

Today, Coinbase’s stock opened at just $54.66, down 25% from yesterday’s close.

The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.

This morning — as UST burns and other crypto assets, like the newly launched ApeCoin, face extreme selling pressure — we’ll examine Coinbase’s results and what went wrong with its business in the first quarter.

Crypto bulls will dismiss any criticism of the company’s performance as a blip in the larger progression of crypto. For the rest of us, the report makes for a useful lens for scoping the current state of the consumer crypto market. Let’s go!

Fewer users + more costs = big losses

In the first quarter, Coinbase’s revenues dipped 27% to $1.17 billion from a year earlier, and operating expenses more than doubled to $1.72 billion. The huge step-up in spend was partially because of the company’s much larger headcount — it had 4,948 full-time employees in the first quarter, up from 3,730 at the end of 2021 and 1,717 at the end of Q1 last year.

Coinbase, which also reported less revenue than it did in the fourth quarter, appears to be beset by a few major issues.

Post a Comment

Read also:
Flash Sale! Do Shopify customization or bug fixing. Get It Now
Cookie Consent
We serve cookies on this site to analyze traffic, remember your preferences, and optimize your experience.
It seems there is something wrong with your internet connection. Please connect to the internet and start browsing again.
AdBlock Detected!
We have detected that you are using AdBlock Extension in your browser.
The revenue we earn by the advertisements is used to manage this website, we request you to whitelist our website in your AdBlock Settings.
Site is Blocked
Sorry! This site is not available in your country.