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Monitors display Coinbase signage during the company’s initial public offering (IPO) on the Nasdaq Marketplace site on April 14, 2021 in New York City.
Robert Nickelsberg | Getty Images
Coinbase shares rose 2.1% in extended trading on Tuesday after reporting second quarter income which were stronger than analysts expected.
Here’s how the largest cryptocurrency exchange in the United States fared compared to expectations:
- Income: $ 2.23 billion against $ 1.78 billion expected
- Earnings: $ 6.42 per share, not comparable to estimates
The company’s net profit for the quarter was $ 1.6 billion, up nearly 4,900% from a year earlier, following a volatile trading period for cryptocurrencies.
The fate of Coinbase is tied to the performance of digital assets like bitcoin. The company generated $ 2.0 billion in net revenue, including $ 1.9 billion in transaction revenue and over $ 100 million in subscription and service revenue. Bitcoin prices fell about 41% during the quarter.
Users with monthly transactions reached 8.8 million, up 44% from the previous quarter, while transaction volume increased 38% to $ 462 billion from the previous quarter.
The company reported that the total volume of transactions has diversified beyond bitcoin to ethereum and other crypto assets. About 24% of the company’s total trading volume for the quarter was focused on bitcoin, up from 39% in the first quarter.
Although the company has not offered any formal guidance, it said trading volume will be lower in the third quarter compared to the second quarter. For the full year, analysts polled by Refinitiv expect $ 7.76 per share on revenue of $ 6.29 billion.
During April’s direct listing, Coinbase opened at $ 381 per share and was briefly valued at $ 100 billion, a landmark event for the cryptocurrency industry.
Excluding the after-hours move, Coinbase stock has fallen about 29% since the company’s direct listing on April 14, while the Nasdaq has risen nearly 20% during the same time frame.
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