Crypto and COIN crash may affect Coinbase Q1 revenue report

The most anticipated report by Coinbase Global Inc is scheduled to be released on 10 th May, 2022. The report is said to attract mixed reactions from the crypto world in general. Currently, Coinbase is well known as a cryptocurrency exchange that makes it easy to purchase, trade, and exchange digital assets.

 The Q1 revenue report is predicted to be almost similar to or lower than the figures the company reported for Q4 last year. As per Factset, analysis has forecasted revenue of $1.5 billion in Q1. This reflects a loss of one cent per share.

More expectations have been made public, with Yahoo Finance joining the wave and stating their estimations. Yahoo Finance estimates a revenue ranging between $1.24 billion and $1.92 billion for both this and other quarters to come. Additionally, the estimated earnings are between $0.68 and $2.02 per share.

Coinbase revenue

Trading fees contribute almost 90% of the company’s profit. In most instances, these trading fees are the highest in the market. However, the latest trend and the downturn in crypto markets are attributed to the impacts of the high-earning transaction fees for the company this year.

As a caution to investors and users, equity research analyst at investment bank Needham & Co, John Todaro, says that the revenue was affected by higher volatility and price swings due to continuing decline with periods of range-bound markets as well as relatively muted trading volumes. 

Additionally, Coinbase revenue was also affected by the Lackluster action to allow a handful of users in the NFT marketplace. These actions resulted in extremely low trading volumes than expected when compared to its competitors.

Coinbase’s monthly transactional users may have also decreased during a quarter when crypto markets were primarily stabilizing. Throughout January and March of this year, most popular crypto assets maintained range-bound, but in the last week, they have fallen to their lowest levels in ten months.

Coinbase stock has taken a significant knock since the beginning of trade this week, indicating that Wall Street has factored in the disappointing earnings forecasts.

According to MarketWatch, COIN fell 19.5 percent in after-hours trade on Monday, May 9, to just $83.45. The stock price has plummeted by 47 percent in the last month, outperforming the cryptocurrency sector. At the time of writing, the COIN is trading at an all-time low, down more than 75% from its all-time high of $342 in November.