![]() ![]() ![]() Assets on the platform dwindled, down nearly 63% from $256 billion last quarter to $96 billion. The company attributed the trading slump, in part, to the high percentage of BTC and ETH users holding on to their assets rather than “selling into market volatility.”ĭespite Coinbase’s conviction in these HODLers, the company wasn’t insulated from the overall decline in crypto prices in the second quarter. As a result, its MTU mix has trended toward activities besides trading, such as staking, the company wrote, admitting that such “non-investing” activities are less lucrative in terms of the revenue they bring in per user. In its letter, Coinbase noted that its core retail customers are trading less. “The current downturn came fast and furious, and we are seeing customer behavior mirror that of past down markets,” the company said in its Q2 2022 shareholder letter. In general, crypto trading activity has slowed across all exchanges, which in turn has affected Coinbase’s main revenue stream (transaction fees.) Total trading volume on Coinbase dipped from $309 billion to $217 billion in Q2 - a 30% drop from Q1 2022, partially driven by a decline in monthly transacting users (MTUs), which fell to 9 million from 9.2 million over the same timeframe. Coinbase also holds customer cash of $7.18 billion (off from $10.53 billion at the end of 2021), and, notably, $361.7 million worth of the USDC stablecoin, up sharply from just over $100 million at the end of last year. ![]() However, the company’s cash and equivalents are down from $7.12 billion at the end of 2021 to $5.68 billion at the end of Q2 2022. Looking at other expense categories, R&D costs and G&A expenses also rose sharply, while sales and marketing costs eased by around $45 million compared to the year-ago period.Ĭoinbase remains a wealthy company, per a first look at its updated balance sheet. What drove the higher cost basis for Coinbase? Part of the cause can be found in share-based compensation costs, which rose from $189.3 million in Q2 2021 to $391.5 million in its most recent quarter. Other expenses, including interest-related costs, pushed its net income under its operating income result. Indeed, Coinbase flipped from an operating profit of $874.7 million in the second quarter of 2021 to a $1.04 billion operating loss in the second quarter of this year. The combined gain in expense and decline in top-line income put the company deeply into the red. In the second quarter, Coinbase’s net revenue declined from $2.033 billion to $802.6 million, a drop of around 60%. Coinbase’s Q2 resultsĬoinbase’s quarter included a large gain in costs compared to the year-ago period - around $500 million - and a sharp revenue decline. In the wake of its earnings announcement, Coinbase’s stock is off modestly, although it has traded somewhat chaotically in early after-hours trading. Per those estimates, Coinbase posted a top-and-bottom line miss.Ĭoinbase shares were off around 10.5% during regular trading hours. ![]() The company’s adjusted EBITDA, a highly non-GAAP metric, was -$151 million in the period.Īnalysts had expected the company to lose $2.65 per share off revenues of $832 million, per averages shared by Yahoo Finance. In the second quarter, Coinbase reported net revenues of $802.6 million and earnings per share of -$4.98 (diluted), predicated on net income of -$1.09 billion. cryptocurrency exchange Coinbase reported its second quarter performance. ![]()
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