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Coinbase Global Inc. shares plunged nearly 15% after Q1 revenue missed estimates and cautioned that total trading volume in the current quarter will be lower than in the first.
Source: Coinbase
COIN down -14.47%, HOOD up +1.08%, pre-market trading
Revenue fell 27% from a year earlier, and it also posted a net loss of $430 million in the first quarter.
Monthly transacting users dropped to 9.2 million, below an estimate of 9.5 million. Q1 revenue plummeted to $1.17 billion, as analysts anticipated revenue of $1.48B.
Coinbase earns the majority of its revenue from trading fees, and its shares have plunged to all-time lows, down more than 70% since the company went public a year earlier.
The company expects total trading volume and monthly transacting users in Q2 to be lower than in Q1, but its outlook for 2020 is largely unchanged.
Coinbase is working to diversify its business and cut its dependence on trading fees. Its staking product continues to gain traction.
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