Coinbase Q2 earnings report

Coinbase Q1 EPS $4.40, Revenue $1.64B Beat Expectations; Stock Falls After-Hours

May 3, 2024, 03:23 PM

Coinbase Global Inc. reported a significant beat on its first-quarter earnings, surpassing Wall Street estimates with an earnings per share (EPS) of $4.40, compared to the expected $1.05, and revenue of $1.64 billion against the forecast of $1.3 billion. The substantial increase in EPS was largely attributed to the adoption of new crypto accounting standards, which allowed for $737 million in pre-tax crypto asset mark-to-market gains, mostly unrealized. Despite these strong results, Coinbase's stock experienced a post-earnings drop, declining by approximately 5% in after-hours trading. This unexpected market reaction is speculated to be due to the earnings beat already being priced into the stock, coupled with profit-taking actions by investors.