0
0
Coinbase Q2 Earnings Show Revenues Surge
Coinbase beats revenue expectations but falls short on earnings per share.
0
0
Coinbase stock is experiencing after-hours volatility off the release of its Q2 earnings results. After falling more than 5% in intraday trading, the stock recovered nearly 3% in after-hours.
What’s the Scoop?
- Mixed Bag: Coinbase beat analyst revenue expectations by 6.6%, recording $1.45B in revenues during the second quarter of 2024. Despite the topline beat, Coinbase earnings were significantly weaker than expected, with the firm reporting an earnings per share (EPS) of just $0.14, a whopping 84% below analyst projections.
- Subscription Shift: While Coinbase transaction revenues declined by 27% quarter-over-quarter, subscription and services revenues (a stickier source of income that the company had been eager to grow) increased by 17% over the same period.
- Expense Increase: Coinbase operating expenses grew by 26% QoQ in Q2 to $1.1B; this figure is expected to rise throughout the remainder of the year as Coinbase expands headcount to support its product and catalyze international expansion.
Bankless Take:
The success of Coinbase is largely contingent on increasing crypto prices, as the vast majority of its revenues are earned from trading-related activities.
Although the total crypto market cap declined slightly during Q2 2024, Coinbase’s revenue beat indicates the traders remained active during this period. Simultaneously, anticipations of future expenditure increases indicate that the firm perceives a strong growth trajectory for the crypto industry.
