Coinbase sinks 5% after missing second quarter revenue estimates
Coinbase shares fell 5% after the company reported second-quarter revenue of $1.22 billion, missing analyst expectations of $1.29 billion. The decline is attributed to reduced trading volumes and volatility in the broader cryptocurrency market during the quarter.
Why it matters
Coinbase's performance serves as a bellwether for the health of the retail crypto market and the success of diversification efforts into subscription-based services.
The company had revenue of $1.22 billion, versus consensus expectations of $1.29 billion. Transaction revenue came in at $599 million, compared with expectations of $628 million.
Subscription and services revenue totaled $555 million, versus estimates of $599 million, as investors looked for signs that recurring businesses continued to offset weakness in trading activity.
The results came after a difficult quarter for crypto markets. Bitcoin BTC $ 64,753.25 fell roughly 14% during Q2 while ether lost about 25%, reducing both trading volumes and volatility across spot markets. Analysts had expected a slowdown throughout the industry after activity weakened in April and May, although trading improved modestly in June. Robinhood (HOOD), on Wednesday, reported that its revenue from crypto trading fell 38% year over year to $100 million from $160 million.
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