Coinbase Posts $359 Million Q2 Net Loss, Shares Drop 5% After Hours
Summary
- Coinbase said second-quarter net revenue fell 19% from a year earlier to $1.2 billion, while its GAAP net loss totaled $359 million.
- It said transaction revenue, subscription and services revenue, and adjusted EBITDA all came in below market expectations.
- Despite the weak results, its global crypto trading volume share rose to a record 10.3%, though the stock fell more than 5% in after-hours trading.
Forecast Trend Report by Period
Coinbase posted a record share of global crypto trading volume in the second quarter, but profitability missed Wall Street expectations.
Crypto media outlet Cointelegraph reported on July 30 that Coinbase generated about $1.2 billion in net revenue in the second quarter. That was in line with market estimates but down 19% from a year earlier. The company reported a GAAP net loss of $359 million, much wider than analysts’ forecast for a loss of about $122 million.
Results in key business lines also fell short of expectations. Transaction revenue totaled $599 million, missing forecasts of $636 million, while subscription and services revenue came in at $555 million, below the market estimate of $590 million. Adjusted EBITDA also missed consensus.
Coinbase attributed the decline in trading revenue to a 25% quarter-on-quarter drop in spot crypto trading volume, lower market volatility and weaker retail and institutional trading activity as crypto prices fell.
Despite the weak earnings, Coinbase’s share of global crypto trading volume rose to a record 10.3% from 9.1% in the first quarter. The gain came even as trading activity weakened across the industry.
Coinbase shares fell more than 5% in after-hours trading following the earnings release. The stock had closed up 2.2% in the regular session.
Korea Economic Daily
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