Cryptocurrency platform Coinbase Global Inc (NASDAQ:COIN) reported second quarter financial results and shared an updated full year guidance after market close Tuesday.
What Happened: Coinbase reported second quarter revenue of $802.6 million, compared to $2.0 billion in the previous year’s second quarter. Revenue missed a Street consensus of $830.5 million, according to data from Benzinga Pro.
The company reported a loss of $4.98 per share in the second quarter, missing a Street estimate of a loss of $2.68 per share.
The company reported 9 million monthly transacting users in the second quarter, down 2% from the first quarter and up from the 8.8 million reported in the year ago period.
Coinbase had trading volume of $217 billion in the second quarter, down 30% from the first quarter.
Assets on the platform were $96 billion in the second quarter, down from $256 billion in the first quarter.
“At Coinbase, we live by the mantra ‘it’s never as good as it seems, and it’s never as bad as it seems,’” the company said.
The company cited macroeconomic conditions and the crypto market dropping 60% of its market capitalization in the second quarter.
“Coinbase is an all-weather company with experience in navigating through crypto asset price cycles.”
The company focused on several chapters for the business in its shareholder letter:
- Chapter 1: crypto is cyclical
- Chapter 2: down markets create financial headwinds
- Chapter 3: Coinbase is adjusting to market conditions
- Chapter 4: building for the future, and excited by product momentum
- Chapter 5: strong capital and risk position
- Chapter 6: outlook
Along with the chapters laying out the company’s foundation and goals, Coinbase highlighted it has not blocked client withdrawals and had no credit losses from financing activities or exposure to client insolvencies.
“We did not have exposure to the significant trading volumes related to the liquidation events of $LUNA, Three Arrows Capital, Celsius and Voyager.”
What’s Next: The company put an emphasis on taking several steps to streamline costs given the macroeconomic issues. This includes an 18% employee reduction in June and several other cost-cutting measures.
Guidance for the third quarter is lower monthly transacting users and trading volume than the second quarter, based on current trends and conditions seen in July.
For the full fiscal year, Coinbase sees monthly transacting users hitting a range of 7 million to 9 million.
“We continue to take a long-term view and remain focused on building for the future,” the company said.
The company said down markets can feel scary, but are “not as bad as they may seem.”
“At Coinbase, we are optimists and are focused on building great products and services for our users.”
COIN Price Action: Coinbase shares are down 3% to $85.42 in after-hours trading Tuesday.