The Strategist

Coinbase papers lose over 10% after company’s $1B loss

08/10/2022 - 09:26

Coinbase reported a loss of over $1 billion in the second quarter and a decline in revenue of about 64% for the quarter due to the fall in cryptocurrency prices. Shares of the company were down 10.5% by the end of trading on Tuesday, August 9, and lost another 5% during the post-market.

Marco Verch
Marco Verch
Before and after the end of trade on Tuesday, August 9, shares of American cryptocurrency exchange Coinbase were down 10.55% and 5.34%, respectively. According to CNBC, the cryptocurrency exchange revealed a quarter-over-quarter revenue decline of about 64% and a $1.1 billion loss to stockholders. The company dropped its user transactions forecast for the entire year and disclosed that it had reduced its employees by 18% in the first three months.

The business fell short of analysts' sales projections. According to Refinitiv’s survey, the actual loss was $4.98 per share as opposed to the expected loss of $2.65 per paper. Analysts anticipated revenue of $832.2 million, but, according to Refinitiv, the company's revenue was $808.3 million.

When compared to 2021, Coinbase's revenue dropped by about 64% as investors pulled out of the cryptocurrency sector. Retail transaction revenue was $616.2 million, 66% less than StreetAccount's estimate of $667.1 million made by analysts.