Coinbase Stock Down About 5% After Missing Projections Again
Coinbase execs urge investors to look at the bigger picture in shareholder letter reporting revenue drop
Coinbase CEO Brian Armstrong | blockworks exclusive art by axel rangel
- Coinbase reported $803 million in revenue, down from $1.17 billion in Q1
- Total quarterly trading volume was $217 billion, about a 30% decrease
Crypto exchange Coinbase reported $803 million in revenue during the second quarter, coming in markedly shy of analysts’ estimates of $854.8 million.
Shares were down about 5% in after-hours trading.
Of Coinbase’s second quarter revenue, $655 million came from trading fees, a 35% decline from the first quarter. Of that, $39 million came from institutional investor transactions, a 17% decline over the same period.
Coinbase’s monthly active users dipped to 9 million in the second quarter, down from 9.2 million.
Total quarterly trading volume was $217 billion, about a 30% decrease— which the exchange attributed to market conditions in its shareholder letter, released ahead of Tuesday’s earnings call.
Revenue from subscription and services came in at $147 million, down 3% and up 44% year over year.
“We highlight the 44% year-over-year growth because it helps illustrate that these revenues are less volatile compared to transaction revenue,” the exchange wrote.
The exchange said it has “paused some smaller and longer-term products and expects to sequence our international growth efforts,” in order to focus on growing the Coinbase retail app, Coinbase Prime, staking features, developer products and its Web3 business.
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