- Coinbase reported $1.22 billion in Q2 revenue, missing the $1.29 billion estimate, and posted a $359 million net loss.
- Transaction revenue declined to $599 million, while subscription and services revenue came in at $555 million, below its forecast.
- The exchange’s crypto trading market share hit a record 10.3%, and prediction markets revenue grew 106% quarter-over-quarter.
Coinbase reported $1.22 billion in second-quarter revenue on Thursday, missing analyst estimates of $1.29 billion and posting a net loss of $359 million. Shares fell roughly 5% in after-hours trading as total crypto spot trading volume declined more than 20% from the previous quarter amid falling asset prices and low volatility.
Transaction revenue totaled $599 million, below the expected $628 million, while subscription and services revenue reached $555 million, representing 48% of net revenue. According to the company, the subscription figure fell short of its $565 million to $645 million forecast because certain USDC commercial agreements closed later than expected and lower crypto prices reduced staking revenue.
Stablecoin revenue came in at $292 million, with average USDC held across Coinbase products hitting a record $20 billion during the quarter. The company also said that 88% of net revenue came from sources other than Bitcoin spot trading, compared with 45% in Q2 2020.
Coinbase said its crypto trading market share reached a record 10.3% during the quarter, marking its third consecutive quarter of gains in both spot and derivatives trading. Meanwhile, prediction markets contracts and revenue grew 106% from the previous quarter, exceeding a $100 million quarterly annualized net revenue run rate.
The company ended the quarter with $8.6 billion in cash and cash equivalents and repurchased 814,000 Class A shares. During the earnings call, CEO Brian Armstrong said, “Coinbase is no longer a bet just on the price of Bitcoin.” He added, “All of financial services are getting updated by crypto technology, whether that’s trading or payments or lending.”
For the third quarter, Coinbase said transaction revenue totaled approximately $130 million through July 26. The company expects subscription and services revenue between $500 million and $580 million and adjusted expenses between $980 million and $1.08 billion.
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