Coinbase Global Inc. on Tuesday reported fourth-quarter results that beat estimates, saying the crypto market had “improved” so far in the first quarter, but that the rest of the year remained cloudy.
The crypto trading platform reported a fourth-quarter net loss of $557 million, or $2.46 per share, compared with a profit of $840 million, or $3.32 per share, in the same quarter in 2021. Revenue came in at $605 million dollars, compared to 2.49 billion dollars in the previous quarter.
Analysts…
Coinbase Global Inc. on Tuesday reported fourth-quarter results that beat estimates, saying the crypto market had “improved” so far in the first quarter, but that the rest of the year remained cloudy.
The crypto trading platform reported a fourth-quarter net loss of $557 million, or $2.46 per share, compared with a profit of $840 million, or $3.32 per share, in the same quarter in 2021. Revenue came in at $605 million dollars, compared to 2.49 billion dollars in the previous quarter.
Analysts polled by FactSet expected Coinbase
COIN
to lose $2.52 per share, on revenue of $588 million.
FactSet forecast a loss of $1.74 per share in the first quarter, on revenue of $598 million. For the full year, those forecasts called for a loss of $5.19 per share on revenue of $2.77 billion.
The stock rose 0.9% after hours.
The results follow a flight from crypto trading that began in 2021, when fears of inflation and recession made traders more cautious about volatile assets, and was interrupted last year by the collapse of crypto exchange FTX. Shares in Coinbase have risen so far this year, however, in line with a decline in the price of bitcoin
BTCUSD
.
Still, DA Davidson analysts noted in a research note last week that US regulators have begun cracking down more aggressively on crypto, following growing concerns about security and fraud. The Securities and Exchange Commission has proposed measures that would tighten custody requirements, and the agency has targeted other companies over stablecoins — or cryptocurrencies whose value is tied to another asset, such as traditional money — and betting, a way to earn passive income from crypto. inventory.
“While we still agree with (management’s) view that improved clarity and a level playing field should ultimately prove good for both Coinbase and the sector overall, the near-term path looks increasingly treacherous,” the analysts said.
While Coinbase shares are up so far this year, shares have fallen 64.3% over the past 12 months. By comparison, the S&P 500 index
SPX
has fallen 7.1% over the past 12 months.
