Crypto exchange COINBASE (COIN) topped Q4 estimates Tuesday evening, but shares are sharply lower today alongside a sizable pullback in crypto.
The company reported fourth-quarter revenue of $605 million, up 5% from the previous quarter and beating consensus estimates for $588 million. The exchange’s Q4 loss of $2.46 per share topped forecasts for a loss of $2.52.
COIN, however, continues to pull back after a big run higher to start the year – the stock’s down 6.1% today and 13% over the past week, but still ahead 75% year-to-date. Bitcoin () is lower by nearly 4% today to $23,700 as it continues to retreat from the $25,000 level touched earlier this week.
Wall Street analysts on balance had a favorable view of Coinbase’s report. Oppenheimer’s Owen Lau called the company’s outlook “encouraging,” and said the restructuring put in place earlier this year puts Coinbase on track to become cash profitable.
JPMorgan’s Devin Ryan wrote that management’s “shift in tone around profitability is particularly notable,” but that this focus won’t limit the company in any way.
Speaking on the earnings call, Coinbase CEO Brian Armstrong said his “top priority” for 2023 is policy and he plans on spending plenty of time in Washington D.C. to make his case with regulators and lawmakers.
