After the bell on Tuesday, the company reported first-quarter earnings that missed analyst estimates. After falling as much as 19% in extended trading, shares rebounded. After hours, the stock is down 8%.
The key numbers are here.
Before the report, the stock had lost more than half of its value since late March, as a broader slide in tech stocks and the value of cryptocurrencies hit Coinbase particularly hard. On Monday, the symbolic price threshold was $30,000.
From the fourth quarter, usage declined. Total trading volume dropped from $547 billion in the fourth quarter to $309 billion, while retail monthly transaction users fell from 9.2 million to 9.2 million.
The company reported a net loss of $430 million in the first quarter, as revenue dropped 27% from a year ago.
The company doesn't seem to be concerned about its long-term prospects. The company reminded shareholders that its stock should be seen as a long-term investment due to the volatile nature of thecryptocurrencies.
The company wrote in a letter to shareholders that it believes the market conditions are not permanent. It said that it was focusing on the next generation of opportunities.
While we continue to invest and enhance our core investment platform, the application era of cryptocurrencies is upon us, and we are increasingly focusing our efforts on these market opportunities.
The company's bottom line was dragged down by increased spending.
General and administrative expenses increased by 39% in the last quarter. Expenses related to full-time and contractor-related employees increased. The purpose of that spending was to strengthen and scale our customer support, legal, compliance, and business support functions.
For the first time since the company began reporting finances publicly, operating expenses outpaced revenue.
You can subscribe to CNBC on the internet.
All Rights Reserved © 2024
