Coinbase (COIN) revenue for the 4th quarter of 2021

Monitors display Coinbase signs during the company’s initial public offering (IPO) on the Nasdaq MarketSite in New York, USA, on Wednesday, April 14, 2021.

Michael Nagle | Bloomberg | Getty Images

Coinbase reported fourth-quarter earnings that exceeded analysts ’estimates after Thursday’s call. Shares jumped after the report. They fell by about 3% a few hours before the call with analysts.

Here are the key figures:

  • Earnings per share (EPS): $ 3.32, against an expected $ 1.85, according to a survey by Refinitiv analysts
  • Income: $ 2.5 billion versus the expected $ 1.94 billion, according to Refinitiv

The company predicted that the number of retail users of monthly transactions (MTUs) and total trading volume will be lower in the first quarter of 2022 compared to the 4th quarter of 2021. Coinbase attributes this change to a decrease in crypto asset volatility and a 20% decrease in crypto market capitalization capitalization since the beginning of the quarter. It says that the decline in market capitalization is due to macroeconomic factors such as geopolitical instability and the US Federal Reserve, which signal a strengthening of financial conditions.

Coinbase expects revenue from subscriptions and services to be lower in the first quarter due to lower crypto asset prices.

In the fourth quarter, MTU rose to 11.4 million in the first quarter against 7.4 million in the third quarter. This came after Coinbase noticed a decline in MTU between the 2nd and 3rd quarters.

Net income for the 4th quarter doubled to $ 840 million for the quarter. This is several times the net profit of Coinbase in the 4th quarter of 2020, when it reported $ 177 million.

The report comes after major cryptocurrencies experienced a weak month in December, despite a general price explosion in 2021. Investors blamed the slow end of the year on concerns about cryptocurrency energy consumption and macroeconomic factors such as the rise in the omicron Covid option.

In the previous quarter, Coinbase warned shareholders that its shares should be considered a long-term investment because its business is “volatile”.

This has been demonstrated in recent weeks as major cryptocurrencies, such as bitcoin, have fallen in price amid fears that Russian troops will invade Ukraine. This has led some analysts to question the idea that bitcoin could act as a safe currency in times of geopolitical instability.

Coinbase warned in its letter to shareholders that in 2022 for its business there will still be enough uncertainty.

“We are entering 2022 with even more unknowns, making our business even more difficult to predict,” the company wrote, pointing to “global macroeconomic barriers” in addition to unpredictable crypto asset prices, rising interest rates and inflation. But as the saying goes, he sees empowerment and adoption of cryptocurrencies.

This story is evolving. Stay tuned.

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Coinbase (COIN) revenue for the 4th quarter of 2021

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