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Despite its Q1 2022 downturns, Coinbase is optimistic that the market conditions are temporary and the company is focusing on the long-term.
Coinbase Global Inc (NASDAQ: COIN) saw its revenue drop 27% from a year ago to $1.17 billion, according to the Q1 2022 earnings report the company published on the 10th of May. The first-quarter earnings also missed analysts’ estimates, resulting in a 19% fall in Coinbase’s stock during after-hours trading. However, the stock has rebounded a little to be at a loss of 15.67%. Analysts had predicted that Coinbase would report revenue of $1.48 billion in Q1 2022.
Coinbase announced its Q1 2022 earnings between a major sell-off across the crypto market. As a matter of fact, US stocks generally have been poor as investors continue to record losses. More recently, tech stocks lost more than $1 trillion in reaction to the interest rates raised by the Federal Reserve. Also, an ongoing crypto crash has made Coinbase lose over 51% of its value over the past month. Total trading volumes declined 44% from $547 billion in the previous quarter to $309. Loss per share stood at $1.98, and net loss was $430 million.
Furthermore, monthly transacting users (MTUs) on Coinbase reduced from 11.4 million in Q4 to 9.2 million in Q1 2022.
Coinbase Remains Optimistic Despite Weak Q1 2022 Performance
Despite its Q1 2022 downturns, Coinbase is optimistic that the market conditions are temporary and the company is focusing on the long-term. The exchange company also said it targets other opportunities in the space, such as product development, other than meeting high demand. Some of its new focus areas include the beta launch of Coinbase NFT and the adoption of Coinbase Wallet. Others are expanding its staking offering by adding Cardano and the employment of more than 1,200 full-time workers. Coinbase said it hits the new employees to help as it builds towards the future of crypto. The company wrote:
“We ended Q1 with 4,948 full-time employees, up 33% from last quarter, and are pleased with our ability to attract and retain top talent. Over the past twelve months, we have added over 3,200 net new employees, the majority of whom have joined us from either careers in the technology or financial services sectors. Our growing team gives us additional resources for product development and execution, as well as customer support, compliance, and more, which we believe serve as long-term competitive advantages for us.”
Coinbase also added new assets for custody and trading in Q1 2022. It added support for 40 assets for custody and 27 assets for trading. At the end of the quarter, the platform was supporting 212 assets for custody and 166 for trading. Coinbase also added support for its first two assets on the Solana blockchain, ORCA and FIDA. Moreso, the company launched USDC fiat-to-crypto trading in 75 new countries and the “Experimental” asset label.