Bullish (BLSH), the crypto platform and parent company of CoinDesk, reported first-quarter adjusted revenue that missed analysts' forecasts, with subscriptions and services falling short.
Subscription and Services Revenue Miss
Adjusted revenue rose 49% year-over-year to $92.8 million, below the FactSet consensus of $94.9 million. Subscription, services and other revenue came in at $54.8 million, missing Clear Street analyst Owen Lau's estimate of $57.6 million. Trading revenue was roughly in line with or above expectations.
Weak Crypto Market Weighs on Rivals
Bitcoin and other digital assets pulled back from highs reached late last year, pressuring the entire crypto market. Rival Coinbase (COIN) also reported weaker-than-expected results last week as softer crypto prices reduced trading volumes. Robinhood (HOOD) missed estimates as crypto-related revenue fell 47% year over year.
Wider Net Loss but Improved EBITDA
Adjusted EBITDA came in at $35.1 million, up from $13.2 million a year earlier but missing expectations of $38 million. Net loss widened to $604.9 million (or $3.85 per diluted share), compared with a loss of $348.6 million ($3.04 per share) a year earlier. The wider loss was primarily driven by non-operating items.
Acquisition of Equiniti Targets Tokenized Securities
Last week, Bullish agreed to acquire transfer agent and shareholder services firm Equiniti in a $4.2 billion deal aimed at expanding into tokenized securities. The acquisition gives Bullish a regulated transfer agent business alongside its tokenization, trading and market infrastructure operations.
Bullish shares recovered much of their initial decline as broader markets rose. They were recently 1.42% lower at $41.22.