CoinbaseCOIN$59.81Buy
Unity SoftwareU33,72 $
10 May Coinbase and Unity report Q1 2022. Slow growth did not please investors, and they began to actively get rid of the shares of unprofitable companies.
Coinbase (COIN)
Key company results and analyst expectations:
- net loss per share — 1,98 $, expectations - 0 $;
- revenue — 1.2 billion, expectations - $1.5 billion.
The financial performance of the crypto-exchange disappointed investors: the company reported a loss, and its revenue year on year collapsed immediately by 27%.
Operating performance is no better: activity on the stock market falls. Quarter to quarter, the number of monthly active users decreased from 11.4 to 9.2 million people. And the total trading volume fell from 547 to 309 billion dollars. Coinbase explained this result by low market volatility and low prices for cryptoassets..
At the same time, the company spends, as if her income is increasing, and does not fall by more than a quarter. In just a quarter, the exchange increased its staff by a third at once. As a result, development costs, Marketing and Human Resources were $1.2 billion, the entire quarterly revenue. Including other expenses, the net loss was $430 million. Adjusted EBITDA adjusted for non-operating expenses near zero.
Coinbase expects, what's in the current, second quarter, user activity and trading volume will be even lower. Seems, the current results are of little concern to the company itself. She once again reminded investors, that investing in Coinbase is a long-term investment and faith in the mission of the exchange.
Coinbase shares fell 12.6% during the main session, and after the report on the postmarket for another 15,6%. Now COIN papers are worth 61 $ - it's about 80% below, than during the IPO a year ago.
Operational results, million people and billion dollars
| Active Users | Trading volume | |
|---|---|---|
| 1к2021 | 6,1 | 335 |
| 2к2021 | 8,8 | 462 |
| 3к2021 | 7,4 | 327 |
| 4к2021 | 11,4 | 547 |
| 1к2022 | 9,2 | 309 |
Financial results, million dollars
| Revenue | Profit | |
|---|---|---|
| 1к2021 | 1597 | 771 |
| 2к2021 | 2033 | 1606 |
| 3к2021 | 1235 | 406 |
| 4к2021 | 2490 | 840 |
| 1к2022 | 1165 | −430 |
Unity (U)
Company indicators and experts' forecast:
- adjusted loss per share — 0,08 $, expectations - 0,08 $;
- revenue - 320.1 million, expectations - 320.7 million dollars.
The results of the developer were at the level of the forecast: year-on-year revenue increased by 36%. But the net loss grew more, from 107 to 178 million dollars. Most of this loss came from stock bonuses to management, so the adjusted loss is almost unchanged at $25 million.
As predicted by Unity, in the current quarter, sales will be about $292.5 million, totaling 7% more compared to last year. Experts expected to see 360 million and growth by 32%.
During the day, Unity shares fell by 4,4%. After the report and a weak post-market forecast, they collapsed by another 29,3%, to 34 $.
Revenue and forecast for the current quarter, million dollars
| 1к2021 | 234,8 (+41%) |
| 2к2021 | 273,6 (+48%) |
| 3к2021 | 286,3 (+43%) |
| 4к2021 | 315,9 (+43%) |
| 1к2022 | 320,1 (+36%) |
| 2к2022 | 292,5 (+7%) |
234,8 (+41%)
Looks "attractive"
Coinbase stocks, Unity, and also Roku, Roblox, Robinhood and others are held by Katie Wood at ARK Innovation. She invests in so-called disruptors - business, who develops technologies and changes habitual way of life.
But for now, disruptors only change the size of the loss in investor portfolios. Most of them have fallen from the maximum already by 70%, like the foundation of Wood herself.
The US central bank has just started a cycle of rate hikes, and Treasury bond yields are rising steadily. All this encourages investors to refuse to invest in risky business..
Even the shares of large and profitable Apple since the beginning of 2022 have fallen in price by 15%. Not surprising, that money-losing companies like Unity fell even more amid a slowdown in growth.
Stocks now overvalued during the corona crisis seem attractive, but it doesn't have to be. The investor should remember, that after falling on 50% the company can fall in price by the same amount several more times. Quite possibly, many of the beneficiaries of the pandemic will never hit their highs again or will do so in decades. Shareholders of Intel and Cisco will not let you lie.
Share price and returns since the beginning of 2022
| Block (SQ) | 83,5 $ (−48%) |
| Robinhood (HOOD) | 9,2 $ (−48%) |
| Zoom (ZM) | 90,3 $ (−51%) |
| Spotify (SPOT) | 99,2 $ (−58%) |
| Twilio (TWLO) | 96,9 $ (−63%) |
| Year (YEAR) | 83,3 $ (−64%) |
| Teladoc (TDOC) | 29,9 $ (−67%) |
| Unity (U) | 34,0 $ (−76%) |
| Coinbase (COIN) | 61,3 $ (−76%) |
| Roblox (RBLX) | 21,9 $ (−79%) |
83,5 $ (−48%)
