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Coinbase’s latest earnings report failed to meet investor expectations, with shares falling in after-hours trading. While the company experienced a rise in overall revenue and continued growth in stablecoin income, key metrics didn’t hit analysts’ targets.
In Q1 2024, Coinbase posted a net profit of $65.6 million, or 24 cents per share—far lower than the $4.40 per share it reported a year earlier. Adjusted earnings, which exclude fluctuations in crypto holdings, stood at $1.94 per share.
The company’s revenue grew to $2.03 billion, compared to $1.64 billion in Q1 2023. However, this figure missed the $2.12 billion that Wall Street had anticipated. Of the total, transaction revenue contributed $1.26 billion, while $698.1 million came from subscriptions and services.
The trading environment was challenging. Retail trading volume declined 17% from Q4 to $78.1 billion, while institutional volume slipped 9% to $315 billion. The previous quarter had been boosted by post-election optimism for regulatory reform under Trump.
Bitcoin’s record high in January offered early momentum, but this was soon offset by renewed economic uncertainty tied to Trump’s tariff proposals, which triggered a sell-off in riskier assets like cryptocurrencies during April.
Still, April alone brought in $240 million in transaction revenue for Coinbase. Looking ahead, the company expects subscription and service revenue between $600 million and $680 million in Q2. However, gains in stablecoins may be offset by reduced blockchain rewards.
To support long-term growth, Coinbase revealed plans to acquire Deribit, a crypto derivatives platform based in Dubai, for $2.9 billion. It’s a strategic effort to expand internationally, but investors remained cautious—sending the stock down 2% after the announcement.