Coinbase Stock Jumps 10% After Q2 Revenue Exceeds Estimates 15

Coinbase Stock Jumps 10% After Q2 Revenue Exceeds Estimates

  • Coinbase’s revenue in the second quarter of 2023 exceeded market estimates by over 12%.
  • The crypto exchange posted a net loss of $97 million and positive adjusted EBITDA of $194 million in Q2. 
  • The interest income from the USDC stablecoin came in at $151 million, down 24% QoQ.
  • The company’s share price gained as much as 10% in after-hours trading. 

Coinbase has reported a total revenue of $708 million for the second quarter of 2023. Despite having a quarter-on-quarter decline of 8%, the revenue was seen as a positive metric given that it beat the market estimate of $628 million. Meanwhile, the crypto exchange’s net revenue came in at $662.5 million, down 10% compared to the first quarter. 

Coinbase Posts Net Loss Of $97 Million In Q2 ‘2023

As per Coinbase’s Q2 earnings report, the transaction revenue from institutional and retail clients came in at $327 million, down from $374 million in the first quarter of 2023. The revenue from subscriptions and services took a 7.2% hit, coming in at $335.4 million. The total revenue also accounted for $45.4 million of corporate interest and other income, which grew 25% compared to Q1. 

The largest crypto exchange in the United States saw a total trading volume of $92 billion in the second quarter of 2023. Retail traders contributed $14 billion, while institutional traders accounted for the remaining $78 billion of trading volume. The consumer and institutional trading volume decreased by 33% and 37% QoQ, respectively. 

As of June 30, 2023, Coinbase had an ETH staking balance of $7 billion, $2.2 billion of which was from institutions. Custodial fees contributed $17 million to the exchange’s revenue. The crypto exchange’s assets under custody witnessed a QoQ hike of 14% to $59.6 billion. Meanwhile, the interest income came in at $201 million, $151 million of which was from USD Coin. 

Q2 was a strong quarter for Coinbase as we executed well and showed resilience in a challenging environment. We’ve cut costs, are operating efficiently, and remain well-positioned to build the future of the crypto economy and help drive regulatory clarity.”

Brian Armstrong, co-founder, and CEO of Coinbase

The earnings report also revealed a net loss of $0.76 per share for common stockholders. However, Coinbase’s overall Q2 metrics prompted its share price to gain 10% earlier today, with the stock soaring as high as $100.42 in after-hours trading. The company’s stock had returned to $91 at the time of writing.