Coinbase Q2 results beats expectations; thanks to crypto

Coinbase Global, Inc. (COIN) is reported its second-quarter 2021 results on Tuesday, after market close. Drastic increase in user base and trading volume helping boost results despite a volatile stretch of trading for cryptocurrencies. 

  • Revenue: $2.23 billion vs. $1.83 billion expected  
  • Adjusted EBITDA: $1.15 billion vs. $961.5 million expected 

“Retail Monthly Transacting Users (MTUs) grew to 8.8 million, up 44% from Q1 2021. Verified Users were 68 million. We now have over 9,000 institutions who continue to deepen and broaden their activities in the cryptoeconomy and more than 160,000 ecosystem partners who are using our crypto tools and services to engage with their own customers. We generated $2.0 billion in net revenue, including $1.9 billion in transaction revenue and over $100 million in subscription & services revenue. Net income was $1.6 billion and Adjusted EBITDA was $1.1 billion.” said the report.

They also reported that Q2 illustrated the volatility we have anticipated in these still-early days in the cryptoeconomy. In Q2, we saw many crypto asset prices reach new all time highs.

Here’s what analysts expect in line with estimates compiled by Seeking Alpha 

Revenue: $1.83 billion, estimated 
Earnings: $2.57 per share, estimated 

Earnings History 

Coinbase has been delivering solid earnings and revenue growth for the last few quarters. For the previous reported quarter published on April 6, Coinbase had verified users of 56 million and Monthly Transacting Users (MTUs) of 6.1 million. This is about a 117% increase quarter-over-quarter and 3.3 million additional users compared to data reported in 2020 Q4. The company noted a trading volume of $335 billion, with total revenue accounting for $1.8 billion. It reported a net income of approximately $730 million to $800 million and adjusted EBITDA of approximately $1.1 billion.  

At the end of the first quarter, the company had $223 billion in assets on the platform. It had 1,717 employees, a 96% increase from the same period last year. Coinbase, the largest digital asset exchange in the US, delivered a negative earnings surprise of 21.39% for the first quarter.   

In 2020, the cryptocurrency exchange reported revenue of $585 million. It earned a profit of $322 million last year on revenues of more than $1.2 billion – a significant jump compared to 2019, where it lost $30 million on revenues of $522 million. 

Company profile  

Coinbase is a leading cryptocurrency exchange platform. Unlike traditional US exchanges, Coinbase enables its users to interact directly with its website, mobile app, or Coinbase Pro platform. The online platform also allows users to convert one cryptocurrency to another or send and receive cryptocurrency to and from other people. It is currently the second-biggest cryptocurrency exchange in the world by volume.  

Plans  

Coinbase recently announced the addition of the ‘Apple Pay’ option for users. Investors can buy bitcoin, Ethereum, and other cryptocurrencies using their Apple Pay accounts on iPhones. According to the company’s senior director of payments, Prakash Hariramani , Investors will be able to cash out up to $100,000 in one go immediately. Coinbase also said it is working on Google Pay Integration, which should probably arrive in late fall. 

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