%Cryptocurrency exchange %Coinbase Global ($COIN) has reported fourth-quarter earnings that beat analyst estimates across the board.
Coinbase’s earnings per share (EPS) came in at $3.32 U.S. versus $1.85 U.S. that Wall Street had expected, according to Refinitiv data. Revenue totaled $2.5 billion U.S. compared to $1.94 billion U.S. that had been forecast by analysts who cover the company.
However, despite the strong earnings beat, Coinbase stock slumped about 3% after the company forecast that retail monthly transaction users (MTUs) and total trading volume during the current first quarter would be lower than the previous fourth quarter of 2021.
Coinbase attributed the change to decreased cryptocurrency asset volatility and a 20% decrease in cryptocurrency market capitalization.
Declining market capitalization is driven by macroeconomic factors such as geopolitical instability and the Federal Reserve signaling a tightening of financial conditions, the company said.
Coinbase said it expects subscriptions and services revenue to be lower in the current quarter because of falling cryptocurrency asset prices.
MTUs jumped to 11.4 million in the fourth quarter of 2021, up from 7.4 million in the third quarter. Coinbase also reported that net income doubled to $840 million U.S. in the fourth quarter compared with the prior period when it reported $177 million U.S.
The report comes after major cryptocurrencies saw a weak month in December, despite an overall explosion in value during 2021. Investors blamed the year-end slowdown on concerns about cryptocurrency’s energy consumption and on macroeconomic factors such as the rise of the Omicron variant of COVID-19.
Coinbase has warned shareholders that its stock should be considered a long-term investment because its cryptocurrency exchange is volatile. Year-to-date, Coinbase stock has declined 29% to $179.56 per share.