Bullish misses first-quarter revenue estimates as transaction revenue slips
The crypto platform posted weaker-than-expected revenue as adjusted transaction revenue declined from a year earlier.
What to know:
- Bullish (BLSH) Q1 adjusted revenue ($92.8 million) and EPS ($0.13) missed analyst expectations due to weaker digital asset trading activity. Shares fell 6.5% pre-market.
- Weaker crypto prices reduced trading activity across the industry, also causing Coinbase and Robinhood to miss Q1 earnings and revenue forecasts.
- Bullish is acquiring Equiniti in a $4.2B deal to expand into tokenized securities, adding a regulated transfer agent business.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $35.1 million, up from $13.2 million a year earlier, but missing expectations of $38 million. Bullish reported a net loss of $604.9 million, or $3.85 per diluted share, compared with a loss of $348.6 million, or $3.04 per share, a year earlier.
BLSH shares were down 7.9% in pre-market trading at $38.51.
Crypto markets struggled through much of the quarter as bitcoin and other digital assets pulled back from highs reached towards the end of last year. Lower prices weighed on trading activity across the industry, a key source of revenue for exchanges.
Coinbase (COIN) reported weaker-than-expected first-quarter results last week after softer crypto prices reduced trading volumes. The company posted a loss of $1.49 per share, compared with analyst expectations for a $0.27 profit, while revenue and transaction revenue both missed forecasts.
