Coinbase Global Inc., the biggest US cryptocurrency exchange, reported a fourth-quarter revenue decline that was less than forecast by analysts.
(Bloomberg) — Coinbase Global Inc., the biggest US cryptocurrency exchange, reported a fourth-quarter revenue decline that was less than forecast by analysts.
Fourth-quarter revenue was $629.1 million, higher than the average analyst estimate of $581 million. It had $2.5 billion in revenue during the year-earlier period. The net loss in the quarter was $557 million, while trading volume missed estimates. The company expects first-quarter subscription and services revenue between $300 million and $325 million.
“We expect 2023 to be a year of regulatory focus and we believe our strong foundation will make us a net beneficiary of this new environment,” Coinbase said in an investor letter.
While Coinbase has seen a pickup in trading volume — closely tied to its bread-and-butter trading fees — in recent weeks, as crypto prices rallied, it’s facing mounting uncertainty. Several of its newer businesses, such as stablecoin revenue and staking, in which users earn yields on coin deposits, may face regulatory scrutiny, after recent regulatory actions against rivals.
It’s also been losing market share, which dropped from 5.9% in November to 4.1% in February, according to CryptoCompare. The world’s biggest crypto exchange, Binance, has gained share, reaching nearly 60% in February, according to the researcher.
Coinbase has laid off staff and reduce its areas of focus in the past year.
Coinbase’s shares have rallied by about 75% so far this year as a crypto price rally ramped up trading volumes, according to Bloomberg data.
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