shares Coinbase (COIN) fell after the close of trading due to mixed financial results.
Coinbase shares fell past the $ 250 mark for the first time after trading closed. This was the reference price set by the Nasdaq for direct listing on April 14 when it debuted at $ 381.
Coinbase has a mixed April
В letter to Shareholders Coinbase reported total sales of $ 1,8 billion, in line with the company's expectations in April. However, this is slightly below the $ 1,81 billion expected by analysts. surveyed Bloomberg. The company reported net income of $ 771 million, which is in the expected range of $ 730 million to $ 800 million. Although it exceeded analysts' expectations of $ 762,6 million.
“Coinbase’s strong 2Q21 trading volume guidance — equal to or greater than the massive $335 billion it released in 1Q21 — and its elevated 2021 scenarios for monthly transactional users were, in our view, the key takeaways,” said BTIG analyst Mark Palmer.
What awaits shareholders
The letter also outlined Coinbase's expectations for the near future. For example, the company's annual expectations for users making monthly transactions have increased. This is likely due to the increase in the number of these customers to 6,1 million in the first quarter. This is more than double the amount in the previous quarter. In addition, Coinbase expects the total trading volume in the second quarter to match or slightly exceed the trading volume in the first quarter.
However, Coinbase said that investors should not expect large profits in the future. “We are aiming for the company to operate near break even in terms of profitability, smoothed over time, for now,” the exchange said. Coinbase ended the quarter with nearly $2 billion in cash and cash equivalents.
Coinbase stressed that it is focused on expansion and is likely to make larger acquisitions than in the past. This will continue the trend of recent acquisitions, including the Skew analytics platform. It is also planned to "substantially" increase marketing this year. For example, investments in sales and marketing will account for 12% to 15% of income.
Coinbase also intends to add new services. For example, making it easier to trade non-fungible tokens (NFT) in your application. He also wants to attract larger customers with more services. While most of the company's revenue comes from retail users, institutions account for most of the assets it manages. Coinbase added that competition is another factor contributing to this.
“Our competitors support certain crypto assets that are experiencing high trading volume and market capitalization growth that we currently do not support, as well as offering new products and services that we do not offer,” the company said.