Cryptocurrency trading platform company Coinbase Global (NASDAQ:COIN) reported second-quarter financial results after market close Thursday.
Here are the highlights.
What Happened: Coinbase reported second-quarter revenue of $1.5 billion, down 26% quarter-over-quarter. The revenue missed a Street consensus estimate of $1.69 billion, according to data from Benzinga Pro.
Transaction revenue in the quarter was $764 million, down 39% quarter-over-quarter.
Subscription and services revenue was $656 million, down 6% quarter-over-quarter.
Trading volume was $237 billion in the quarter, down 40% quarter-over-quarter.
Transaction revenue was down year-over-year for both the consumer and institutional segments. The company said crypto spot volume was down 31% globally and 32% in the U.S. year-over-year.
The company ended the second quarter with $9.3 billion in USDC (CRYPTO: USDC) and $1.8 billion in crypto assets, which includes weekly Bitcoin (CRYPTO: BTC) purchases.
Adjusted earnings per share of 12 cents missed the Street consensus estimate of $1.35.
Coinbase said its derivatives trading volume hit all-time highs in the quarter.
The company highlighted its growing USDC adoption, Base Chain going live in more places and scaling, the launch of Base APP in open beta with over 700,000 on the waitlist, and various cryptocurrency legislation pieces, including the GENIUS Act, signed into law.
"These bills provide a clear regulatory foundation for stablecoins and digital assets, potentially unlocking new opportunities for Coinbase and reinforcing U.S. leadership in digital finance," the company said.
Trading volume by cryptocurrency was:
- Bitcoin: 30%
- Ethereum (CRYPTO: ETH): 15%
- Other: 55%
This compares to the first quarter, where Bitcoin was 27%, Ethereum was 11% and XRP Coin (CRYPTO: XRP) was 11%
Transaction revenue by cryptocurrency was:
- Bitcoin: 34%
- Ethereum: 12%
- XRP:13%
- Other: 41%
This compares to the first quarter when Bitcoin was 26%, Ethereum was 10%, Solana (CRYPTO: SOL) was 10% and XRP was 18%.
Read Also: Coinbase Q2 Preview: Can White House Momentum, Bitcoin All-Time Highs Help?
What's Next: Coinbase said it expects July transaction revenue to be $360 million.
The company is guiding for third-quarter subscription and services revenue to be in the range of $665 million to $745 million, surpassing the levels of the second quarter. The growth is attributed to higher cryptocurrency prices and stablecoin revenue.
Coinbase is guiding for higher expenses for the third quarter with higher headcount.
"The opportunities for growth have expanded substantially with increased regulatory clarity. We are taking this opportunity to grow headcount in exciting areas we expect to become meaningful in the future, including international expansion," the company said.
COIN Price Action: Coinbase stock is down 5.8% to $356.04 in after-hours trading Thursday versus a 52-week trading range of $142.58 to $444.64.
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