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Coinbase Global (NASDAQ:COIN) stock dropped 14% in Tuesday after-hours trading after the cryptocurrency exchange said its expects its number of monthly transacting users (“MTUs”) and total trading volume to decline in Q2 from Q1 levels, as crypto prices slumped in April.
“In April, we saw continued declines in both crypto asset volatility and crypto prices, which we believe are associated with weakness in financial markets,” the company said in its Q1 shareholders letter.
“We continue to expect that during a prolonged and stressful scenario for our business, we will aim to manage our 2022 potential Adjusted EBITDA losses to approximately $500M on a full-year basis,” it added.
Crypto market capitalization dropped 18% from the end of March and crypto asset volatility declined 14% vs. Q1 average and was the lowest levels observed since mid-2020.
The cryptocurrency exchange’s outlook for 2022 is largely unchanged. It expected 5.0M-15.0M MTUs in prior guidance, 2022 transaction expenses in low 20% range and technology and development and G&A expenses, excluding stock-based compensation of $4.25B-$5.25B.
Q1 net revenue of $1.17B, trailing $1.48B consensus, dropped from $2.49B in Q4 2021 and $1.60B in Q1 2021.
Q1 EPS of -$1.98 vs. $ consensus of $0.91 and $3.32 in Q4 and $3.05 in Q1 2021.
Q1 MTUs of 9.2M vs. 11.4M in the prior quarter; Q1 trading volume of $309B vs. $547M in Q1 and from $335M in Q1 2021.
Q1 total operating expenses of $1.72B increased from $1.58B in Q4 2021 and rom $813.4M in the year-ago quarter.
Q1 adjusted EBITDA of $19.7M dropped from $1.20B in the prior quarter and from $1.12B in the year-ago quarter.
Conference call at 5:30 PM ET.
Earlier, Coinbase (COIN) GAAP EPS of -$1.98 misses by $1.73, revenue of $1.16B misses by $320M