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.

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