Coinbase Stock Jumps After Q2 Revenue Tops Estimates, Trading Volumes Fall

Investing.com -- Coinbase reported Thursday second-quarter revenue that topped Wall Street estimates even as trading volumes fell by more than quarter as the boost from the bitcoin-spot ETF faded.

Coinbase (NASDAQ:COIN) reported a smaller-than-expected loss for the second quarter on Thursday, as revenue beat Wall Street estimates and total trading volume declined by more than a quarter.

Coinbase shares rose 3% in after-hours trading following the report.

Here are the key takeaways.

Coinbase reported Q2 earnings of $0.14 a share on revenue of $1.40 billion, compared with Wall Street expectations for EPS $0.94 on revenue of $1.38 billion.

Total transaction revenue declined 27% quarter-on-quarter to $781M in Q2, driven by lower trading volumes as funds flowed out of crypto markets during the quarter amid a waning boost from BTC-spot ETF launched earlier this year.

Total trading volume was $226B, down 28% sequentially in Q2, with total consumer trading volume down 34% in Q2 and institutional trading volume down 26% quarter-on-quarter in Q2.

Looking ahead, the company guided Q2 subscription and services revenue in range of $530M to $600M as the recent decline in the price of ETH and an increase in expenses related to stable coin USDC is expected to present a "modest" headwind.

For Q3, transaction expenses was forecast in the mid-teens as a percentage of net revenue, with sales and marketing expenses to increase sequentially to $160 to $210 million, primarily "driven by higher variable digital marketing," the company said.

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