Bullish (BLSH), the crypto platform and parent company of CoinDesk, reported first-quarter adjusted revenue below analyst expectations as weaker digital asset trading activity early in the year weighed on earnings.
The company posted adjusted revenue of $92.8 million, compared with FactSet analyst estimates of $94.9 million.
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.
Robinhood (HOOD) also missed first-quarter earnings and revenue estimates after crypto-related revenue fell 47% year over year to $134 million.
Bullish shares rose last week after the company agreed to acquire transfer agent and shareholder services firm Equiniti in a $4.2 billion deal aimed at expanding its push into tokenized securities. The acquisition would give Bullish a regulated transfer agent business alongside its tokenization, trading and market infrastructure operations.
Executives of the company will hold an investor call at 8:30am ET.
