Coinbase shares nearly tripled off their December lows as the crypto market, and other rate-sensitive assets caught a strong bid. đĒ
Today investors got another look at the company’s earnings as they try to determine whether the stock price’s turnaround will continue…Or if the company’s struggling fundamentals will keep a lid on the share price.
Let’s take a look. đ
First off, the company reported a loss per share of $2.46 on revenues of $629 million. The loss was wider than the $2.55 expected, but revenues topped the $590 expected. With that said, revenue is down roughly 75% YoY as the crypto winter continues to impact engagement metrics.
Speaking of engagement, monthly transacting users (MTUs) fell from 8.5 million to 8.3 million QoQ. However, that was still higher than the 8.22 million analysts expected. Retail transaction revenue of $322 million did miss the $327 million expected. đģ
Since trading volumes remain low and pricing power is compressing in the space, the company is continuing efforts to cut expenses and survive the market rout. It expects restructuring expenses of $150 million in the first quarter.
Regulatory risk remains a big concern for executives and investors alike. The U.S. Securities & Exchange Commission (SEC) and other agencies have recently taken a more aggressive approach toward the industry. That’s unlikely to go away anytime soon, though some point out it could be a positive for Coinbase, which is already an established U.S. exchange. đĩī¸
Despite the lackluster results, $COIN shares are only down about 1% after hours as investors assess the future of crypto. đ¤ˇ
