Coinbase Reports Q2 Miss, Anticipates Further Drop in Users, Shares Down 5%
2022.08.10 00:30
Coinbase Reports Q2 Miss, Anticipates Further Drop in Users, Shares Down 5%
By Davit Kirakosyan
Investing.com – Coinbase (NASDAQ:COIN) shares were trading more than 5% lower after-hours following the company’s reported Q2 results, with EPS of ($4.98) coming in significantly worse than the consensus estimate of ($2.44).
Revenue declined 31% quarter-over-quarter to $808.3 million (vs. consensus of $879.69 million), of which $655 million was transaction revenue (down 35% quarter-over-quarter) and $147 million was subscription and services revenue (down 3% quarter-over-quarter).
The decline in crypto asset prices significantly impacted the company’s quarterly results, with total trading volume declining 30% quarter-over-quarter to $217 billion.
The company expects the soft crypto market conditions from Q2 to continue into Q3. Both MTUs and total trading volume are expected to be lower in Q3 compared to Q2.
For the full 2022 year, the company expects Annual Average MTUs to be in the range of 7.0 – 9.0 million. The company expects Q2 trends to continue in the second half of the year, with a higher mix of non-investing users compared to investing users. Average Transaction Revenue Per User (ATRPU) for 2022 is expected in the low $20s. Despite price headwinds, the company expects Subscription and Services revenue to grow to more than $600 million for the full year.
