Coinbase shares dropped 20% following the company’s reported Q1 results, with EPS of ($1.98) coming in significantly worse than the consensus estimate of $0.05. Revenue was $1.17 billion, missing the consensus estimate of $1.5 billion.
The trend of lower crypto asset prices and volatility that began in late 2021 negatively affected Q1 results. Monthly Transacting Users (MTUs) decreased 19% quarter-over-quarter to 9.2 million. Total trading volume dropped 44% quarter-over-quarter to $309 billion. The decline was consistent with the broader crypto spot market, which also was down 44%. Subscription and services revenue decreased 29% quarter-over-quarter to $152 million in Q1.
The company provided its Q2/22 outlook, expecting MTUs and total trading volume to be lower in Q2 compared to Q1. Subscription and services revenue is expected to be similar to modestly lower in Q2 compared to Q1.
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