Coinbase reports $394M Q1 loss as stock declines 5% after hours amid trading slowdown
Coinbase reported a $394 million Q1 loss and declining revenue due to a trading slowdown, causing its stock to drop 5%.Summary
Coinbase announced a first-quarter loss of $394 million on $1.4 billion in revenue, a significant downturn from the previous year's profit. This decline was attributed to a market-wide trading slowdown, with total crypto market volumes and spot volumes falling over 20% quarter-over-quarter. Despite the overall revenue decrease, subscription and services revenue grew to $584 million, representing 44% of net revenue, and newer business lines like retail derivatives and prediction markets showed promising annualized revenue. The company ended the quarter with substantial cash reserves and guided for subscription and services revenue between $565 million and $645 million in Q2, while also anticipating a one-time restructuring expense related to AI-driven efficiency efforts.
(Source：Crypto Briefing)