Coinbase 2Q Highlights
- Revenue for Q2 was $1.45 billion, surpassing estimates of $1.39 billion.
- Transaction revenue significantly increased to $780.9 million from $327.1 million year-over-year, beating the $745.1 million estimate.
- Subscription and services revenue rose 79% year-over-year to $599.0 million, exceeding the $561.8 million estimate.
- Earnings per share stood at 14 cents.
- Trading volume saw a notable rise to $226 billion from $92 billion year-over-year, surpassing the $219.46 billion estimate.
- Retail trading volume increased to $37 billion from $14 billion year-over-year, though slightly below the $40.06 billion estimate.
- Institutional trading volume jumped to $189 billion from $78 billion year-over-year, marginally beating the $188.31 billion estimate.
- Adjusted EBITDA was $596 million, slightly below the estimate of $612.3 million.
- For the third quarter, Coinbase forecasts subscription and services revenue to be between $530 million and $600 million, compared to an estimate of $565.3 million.
- Coinbase One, a product for retail users, is gaining traction.
- Coinbase continues to litigate against the SEC where necessary.
- There are 14 buy, 12 hold, and 4 sell recommendations for Coinbase stock.
Coinbase Global on Smartkarma
On Smartkarma, analysts like Baptista Research are providing in-depth coverage of Coinbase Global. In their report titled “Coinbase Global: Increased Adoption and Expansion of Base! – Major Drivers,” they highlight the strong first quarter performance of Coinbase under CEO Brian Armstrong’s leadership. The report emphasizes Coinbase’s progress on revenue expansion, growth in stablecoins, dominance in derivatives, and efforts towards regulatory clarity through initiatives like the Base Layer 2 solution and pro-crypto candidate support.
Another report by Baptista Research, “Coinbase Global: Paradox of Its Market Dominance and Regulatory Hurdles! – Major Drivers,” delves into Coinbase’s financial achievements, including significant cost cuts leading to positive net income and strong revenue figures. The analysis underscores Coinbase’s success factors of long-term strategy, regulatory compliance, and operational efficiency amidst a challenging crypto market. Baptista Research also aims to assess factors influencing Coinbase’s future stock price and conducts an independent valuation using a Discounted Cash Flow methodology.
A look at Coinbase Global Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, Coinbase Global shows promising long-term potential. With a high Growth score of 5, the company is seen as having strong prospects for expansion and development in the future. Additionally, Coinbase Global scores well in Resilience with a score of 4, indicating a stable and robust business model that can weather market uncertainties.
Although Coinbase Global receives a lower score in Value and Dividend at 2 and 1, respectively, it compensates with a respectable Momentum score of 3. This suggests the company is on an upward trajectory in terms of market performance. Overall, Coinbase Global, Inc. is positioned well to capitalize on the growing interest in cryptocurrencies and continues to attract clients globally with its platform for buying and selling digital assets.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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