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
key takeaways
- 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.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
