Coinbase published its financials for the first quarter of 2022. Investors observed a fall of 12% in the stock price in after-hours trading. Revenue came to $1.17 billion, out of which $1 billion came from the cut in trading fees.
$152 million was collected in revenue from subscriptions and services in the first quarter.
The total trading volume slid down by 44% to fall to $309 billion compared to the fourth quarter of 2021. Cryptocurrencies are yet to deliver their best performance, and it is a decline in that sector that has been attributed by Coinbase as a factor to have caused the loss.
Another impact felt by the cryptocurrency exchange in UAE – Coinbase was in terms of the number of monthly active users on the platform, which dropped to 9.2 million, as was predicted by Street’s consensus for a mark of 9.5 million.
Brain Armstrong, the Chief Executive Officer of Coinbase, addressed the elephant in the room by stating that the impact was down to the broader market. Brain Armstrong assured that the team works at its best during the downturns, adding that he has therefore never been more bullish about the company.
Alesia Haas, the Chief Financial Officer of Coinbase, pitched in to reiterate that the platform would continue to build great product experiences, get ready for the return from the market, and build its user base.
Alesia Haas said that the company believes that it is well-equipped with the number of resources on the Balance Sheet.
Overall, the crypto trend remained on the lower side in the first quarter, affecting the financials of Coinbase. The volatility can remain in the financials based on the previous trend of digital currencies.
Coinbase is now looking to diversify by moving into prime brokerage offerings, futures & derivatives, and a subscription model with no transaction fee applies for the members.
The crypto trading platform was started in 2012 to make the transfer of Bitcoin accessible to all users irrespective of where they were located. With time, it integrated more products to expand its horizons in the industry.
Its operations are spread across the globe, with above 98 million verified users and $256 billion worth of assets. Coinbase houses nearly 4900 employees and has a $309 billion quarterly volume trade registered in its books.
In addition to Brian Armstrong and Alesia Haas, the executive team of Coinbase has Emilie Choi as the President & Chief Operating Officer, Surojit Chatterjee as the Chief Product Officer, L.J. Brock handling the position of Chief People Officer, Paul Grewal seated as the Chief Legal Officer, and Manish Gupta as the EVP of Engineering.
Coinbase has earned customers’ trust by being easy to use while facilitating investment, spending, earning, saving, and efficient use of cryptocurrencies.