Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Coinbase Stock Dives After Q2 Earnings While Claiming They're An 'All Weather Company' For Crypto Prices Cycles

Stock Markets Aug 09, 2022 22:41
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Coinbase Stock Dives After Q2 Earnings While Claiming They're An 'All Weather Company' For Crypto Prices Cycles
 
CRCW
-27.34%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Cryptocurrency platform Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) reported second quarter financial results and shared an updated full year guidance after market close Tuesday.

What Happened: Coinbase reported second quarter revenue of $802.6 million, compared to $2.0 billion in the previous year’s second quarter. Revenue missed a Street consensus of $830.5 million, according to data from Benzinga Pro.

The company reported a loss of $4.98 per share in the second quarter, missing a Street estimate of a loss of $2.68 per share.

The company reported 9 million monthly transacting users in the second quarter, down 2% from the first quarter and up from the 8.8 million reported in the year ago period.

Coinbase had trading volume of $217 billion in the second quarter, down 30% from the first quarter.

Assets on the platform were $96 billion in the second quarter, down from $256 billion in the first quarter.

Bitcoin (CRYPTO: BTC) made up 31% of trading volume and 31% of revenue, compared to 24% and 25% in the first quarter, respectively.

Ethereum (CRYPTO: ETH) made up 22% of trading volume and 22% of revenue, compared to 21% and 23% in the first quarter, respectively.

“At Coinbase, we live by the mantra ‘it’s never as good as it seems, and it’s never as bad as it seems,’” the company said.

The company cited macroeconomic conditions and the crypto market dropping 60% of its market capitalization in the second quarter.

“Coinbase is an all-weather company with experience in navigating through crypto asset price cycles.”

The company focused on several chapters for the business in its shareholder letter:

  • Chapter 1: crypto is cyclical
  • Chapter 2: down markets create financial headwinds
  • Chapter 3: Coinbase is adjusting to market conditions
  • Chapter 4: building for the future, and excited by product momentum
  • Chapter 5: strong capital and risk position
  • Chapter 6: outlook
Along with the chapters laying out the company’s foundation and goals, Coinbase highlighted it has not blocked client withdrawals and had no credit losses from financing activities or exposure to client insolvencies.

“We did not have exposure to the significant trading volumes related to the liquidation events of $LUNA, Three Arrows Capital, Celsius and Voyager.”

Related Link: What To Watch For On Coinbase Global As The Stock Reacts To Q2 Earnings Results

What’s Next: The company put an emphasis on taking several steps to streamline costs given the macroeconomic issues. This includes an 18% employee reduction in June and several other cost-cutting measures.

Guidance for the third quarter is lower monthly transacting users and trading volume than the second quarter, based on current trends and conditions seen in July.

For the full fiscal year, Coinbase sees monthly transacting users hitting a range of 7 million to 9 million.

“We continue to take a long-term view and remain focused on building for the future,” the company said.

The company said down markets can feel scary, but are “not as bad as they may seem.”

“At Coinbase, we are optimists and are focused on building great products and services for our users.”

COIN Price Action: Coinbase shares are down 3% to $85.42 in after-hours trading Tuesday.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Coinbase Stock Dives After Q2 Earnings While Claiming They're An 'All Weather Company' For Crypto Prices Cycles
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email