Coinbase Global Inc. (COIN) has suffered in recent months, as has the cryptocurrency industry. A steep reduction in trading volume dropped the business from the fourth-largest digital asset exchange by volume last year to 14th-largest in July.
This reduction occurs while the corporation deals with other difficulties. A former Coinbase manager is facing criminal charges for insider trading. And the Securities and Exchange Commission (SEC) is looking into whether the business allowed American consumers to trade digital assets unlawfully. The coinbase earnings call for the First Quarter of 2022 May 10, 2022 05:30 PM.
History of Coinbase Earnings:
Coinbase’s profits per share (EPS) have climbed considerably over the previous two fiscal years. EPS increased from $0.25 in Q1 FY 2020 to $6.47 in Q2 FY 2021. EPS more than quadrupled year on year in seven of the eight quarters over those two years. However, this tendency abruptly reversed in the first quarter of the fiscal year 2022. Analysts now predict losses to increase in Q2 FY 2022, with EPS of -$2.39.
It should note that the EPS figures are pro forma implying the earnings before Coinbase’s initial public offering (IPO) in April 2021, depending on the share count after the IPO. It is to avoid the appearance there’s a significant shift in the firm at the time of the IPO by comparing pre-IPO and post-IPO profit data. COIN results coinbase earnings call for the fiscal year ending September 30, 2022
Transcript of Coinbase Global, Inc.’s (COIN) Q3 2022 Earnings Call:
We started laying the seeds for some of these diverse product lines with different income sources three or more years ago. And we begin to see that happen, which implies Coinbase’s product lineup gets started to provide less volatility for the parent company’s total profitability. We have a long way to go, but it’s a terrific trend heading in the right direction.
It also hastened a move that we had been considering for some time:
Promoting our product group leaders inside the firm. So we agreed to make that adjustment, and they will now report directly to me. It gets handled by the executive team.
When will Coinbase release its third-quarter earnings?
Coinbase will release its third-quarter financial results after the market closes on Thursday, November 3rd.
What can we expect?
EPS estimate: -$2.23. Last year, the reported EPS for the same period was $1.62.
What should you watch?
Monthly Transactions (MTU):
The rapid drop in crypto value has harmed investors’ demand for high-risk digital currencies, resulting in a reduced market with fewer market players.
Since the beginning of the year, Coinbase’s MTU has been cut by 20%. While the slide appears to have eased towards the end of Q2, investors are curious whether customers continued to abandon the site since any return gets interpreted as an early sign of recovery.
Revenue and a new collaboration:
According to the Q2 figures, net revenue fell 35% from the previous quarter, owing to a drop in retail transaction revenue. Coinbase decided to collaborate with Blackrock, that the world’s largest asset manager may assist in generating a new stream of income from the market.
The cryptocurrency landscape:
Coinbase has suffered, falling over 80% since its IPO in 2021. It isn’t the first time crypto assets have experienced such a sharp drop. Since 2010, the crypto economy has experienced four large price cycles, each losing 70 to 90% of the market value.