The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.
Shannon Stapleton | Reuters
Coinbase shares rose as much as 3.8% in extended trading Tuesday after reporting second-quarter revenues that were stronger than analysts had expected.
Here’s how the largest cryptocurrency exchange in the U.S. did versus expectations:
- Revenue: $2.23 billion vs. $1.78 billion expected
- Earnings: $6.42 per share, which is not comparable to estimates
The company’s net profit for the quarter was $1.6 billion, up nearly 4,900% from a year earlier, following a volatile stretch of trading for cryptocurrencies.
Coinbase’s fate is tethered to the performance of digital assets like bitcoin. The company generated $2.0 billion in net revenue, including $1.9 billion in transaction revenue and over $100 million in subscription and services revenue. Bitcoin prices fell about 41% during the quarter.
Monthly transacting users grew to 8.8 million, up 44% from the previous quarter, while trading volume rose 38% to $462 billion from the previous quarter.
The company reported that total trading volume diversified beyond bitcoin into ethereum and other crypto assets. Approximately 24% of the company’s total trading volume for the quarter was concentrated in bitcoin, down from 39% in Q1.
While the company offered no formal guidance, it did say trading volume will be lower in the third quarter compared to Q2. For the full year, analysts surveyed by Refinitiv expect $7.76 per share on revenue of $6.29 billion.