Earlier this week, The TechCrunch Equity podcast noted The chaotic price movement of crypto assets and Coinbase’s projected earnings this week could either smooth or further complicate the path of startups in the web3 ecosystem. It is logical to assume that if Coinbase reports strong numbers, it could assuage some concerns about the new crypto winter.
That did not happen.
Last night Coinbase first quarter income statement sent its already depressed stock plummeting, sending the former public market darling’s shares below $100 a share. This is far, far below the all-time high of $368.90 the stock hit last year.
Coinbase shares opened at just $54.66 today, down 25% from yesterday.
The exchange explores startups, markets and money.
This morning – how STU burns and other crypto assets like the recently launched ApeCoin are facing strong selling pressure – we’ll take a look at Coinbase’s results and what went wrong with its business in the first quarter.
Crypto bulls will dismiss any criticism of the company as a resurgence in the broader development of the cryptocurrency. For the rest of us, the report provides a useful lens for assessing the current state of the consumer crypto market. Let’s go to!
Fewer users + more costs = more losses
In the first quarter, Coinbase’s revenue fell 27% to $1.17 billion year-over-year, while operating expenses more than doubled to $1.72 billion. The huge increase in spending was partly driven by the company’s much larger headcount — it had 4,948 full-time employees in the first quarter, up from 3,730 at the end of 2021 and 1,717 at the end of last year’s first quarter.
Coinbase, which also reported less revenue than it did in the fourth quarter, appears to be facing a few major issues.
Credit: techcrunch.com /