Coinbase shares tumble after mixed financial results

Shares of Coinbase (COIN) fell during trading after the close in light of its mixed financial results.

Coinbase shares fell below $ 250 for the first time during trading after the close. This was the reference price set by Nasdaq for its IPO on April 14, when it debuted at $ 381.

Coinbase has a mixed April

In its letter to shareholders, Coinbase reported total sales of $ 1.8 billion, in line with the company’s expectations in April. However, it was below the $ 1.81 billion that analysts surveyed by Bloomberg had expected. The company reported a net income of $ 771 million, which fell into the expected range of $ 730 million to $ 800 million and beat analysts’ expectations of $ 762.6 million. BTIG analyst Mark Palmer said:

“In our opinion, Coinbase’s strong 2Q21 trading volume guidance, equal to or better than the massive $ 335 billion it posted in 1Q21, and its improved 2021 scenarios for monthly trading users were points key code”

The road ahead for Coinbase

The letter also included Coinbase’s expectations for the near future. For example, the company’s expectations for the whole year increased with respect to users who carry out monthly transactions, which is probably due to the fact that the number of these clients increased to 6.1 million in the first quarter. This increase was more than double the amount from the previous quarter. Additionally, Coinbase expects its total trading volume for the second quarter to reach or slightly exceed that of the first quarter.

Coinbase Nasdaq

Coinbase Nasdaq

However, Coinbase said that investors shouldn’t expect big returns in the future. “We seek to operate the company at breakeven in terms of profitability, smoothed over time, for the time being,” the exchange said. Coinbase ended the quarter with nearly $ 2 billion in cash and equivalents.

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Coinbase noted that it is focused on expansion and that, probably, make larger acquisitions than in the past, continuing its trend of recent acquisitions, including the Skew analytics platform. He also plans to “substantially” increase marketing this year. For example, investments in sales and marketing will account for between 12% and 15% of revenue.

Coinbase stocksCoinbase stocks

Coinbase stocks

Coinbase also plans to add new services, such as facilitating the trading of non-fungible tokens (NFTs) in its app. You also want to attract larger customers by offering more services. Although most of the company’s revenue comes from retail users, Institutions represent most of the assets it has under management. Coinbase added that competition is another contributing factor to this end, as commented:

“Our competitors are supporting certain cryptocurrencies that are experiencing a large volume of trading and growth in market capitalization that we do not currently support, as well as offering new products and services that we do not offer.”

The post Coinbase shares tumble after mixed financial results was first seen on BeInCrypto.

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