Bullish Q1 Revenue Falls Short on Weaker Crypto Volumes

TLDR

• Bullish reported first quarter adjusted revenue of $92.8 million, below analyst estimates of $94.9 million.
• The company posted adjusted EBITDA of $35.1 million, which missed expectations of $38 million.
• Bullish recorded a net loss of $604.9 million, or $3.85 per diluted share, wider than a year earlier.
• Shares of Bullish fell 7.9% to $38.51 in pre-market trading following the earnings release.
• Weaker digital asset prices during the quarter reduced trading volumes across crypto exchanges.

Bullish reported first-quarter adjusted revenue below Wall Street forecasts as digital asset trading slowed. The crypto exchange posted lower transaction activity during the period. Consequently, shares fell 7.9% to $38.51 in pre-market trading.

Bullish Reports Lower Revenue as Trading Volumes Decline

Bullish recorded adjusted revenue of $92.8 million for the first quarter. Analysts surveyed by FactSet expected $94.9 million. The shortfall followed weaker trading volumes across digital asset markets.

The company posted adjusted EBITDA of $35.1 million. That figure rose from $13.2 million a year earlier. However, analysts had projected $38 million for the quarter.

Bullish reported a net loss of $604.9 million. The loss equaled $3.85 per diluted share. A year earlier, it reported a $348.6 million loss, or $3.04 per share.

Crypto markets declined during much of the quarter. Bitcoin traded at $79,273.24 after pulling back from late-year highs. Lower prices reduced trading activity, which drives exchange revenue.

The company attributed performance to softer market conditions. It stated that weaker activity affected transaction revenue. As a result, revenue fell short of analyst expectations.

Coinbase and Robinhood Post Weaker First-quarter Crypto Results

Coinbase also reported weaker-than-expected first-quarter results last week. The exchange posted a loss of $1.49 per share. Analysts had expected a profit of $0.27 per share.

Coinbase missed revenue and transaction revenue forecasts. Softer crypto prices reduced trading volumes across its platform. The company linked earnings pressure to lower market activity.

Robinhood reported a decline in crypto-related revenue. The brokerage said crypto revenue fell 47% year over year to $134 million. It also missed first-quarter earnings and revenue estimates.

Lower digital asset prices weighed on industry performance. Exchanges rely heavily on transaction fees from active traders. Reduced price momentum slowed customer trading across platforms.

Bullish Advances $4.2 Billion Equiniti Acquisition Plan

Bullish agreed last week to acquire Equiniti in a $4.2 billion deal. Equiniti provides transfer agent and shareholder services. The acquisition supports Bullish’s expansion into tokenized securities.

The company said the deal would add a regulated transfer agent business. It plans to combine that unit with tokenization and trading operations. The move expands its market infrastructure services.

Shares rose last week after the acquisition announcement. Investors reacted to the planned expansion strategy. However, shares declined following the earnings release.

Bullish continues to operate its crypto exchange and market services business. The company remains the parent of CoinDesk. It disclosed the quarterly results in its latest earnings report.

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