From CNBC: 2024-05-03 10:05:06

Coinbase reported higher-than-expected Q1 revenue, with the stock trading 2% lower in extended trading. The company posted $4.40 per share, beating the estimate of $1.09, and $1.64 billion in revenue, surpassing the expected $1.34 billion. Coinbase saw a profit of $1.18 billion, compared to a loss last year. Transaction revenue tripled to $1.08 billion. The company’s shares soared 32% year to date.

The profit in the quarter included a $650 million gain on crypto assets. Coinbase’s adjusted earnings per share were $2.15, surpassing the estimate of $1.09. The company saw increased demand for its services during the quarter, with net consumer transaction revenue rising to $935 million. Institutional investors have also flocked to the platform, with new U.S. spot bitcoin exchange-traded funds partnering with Coinbase.

Despite strong performance, Coinbase faces legal challenges from the SEC, including allegations of unregistered securities sales. The company is also contending with competition from Crypto.com. Multiple insiders, including members of the C-suite, sold $383 million in shares during Q1, the most since the company’s listing on the Nasdaq in 2021. Fred Ehrsam, co-founder and board member, netted $129 million from his shares sold.



Read more at CNBC:: Coinbase (COIN) earnings Q1 2024