Coinbase Global Misses on 2Q Revenue, Outlook
By Katherine HamiltonCoinbase Global missed revenue expectations in the second quarter and offered a guidance range that also fell below Wall Street's estimates.The cryptocurrency exchange on Thursday posted a profit of $1.43 billion, or $5.14 a share, in the quarter ended June 30, compared with $36.2 million, or 14 cents a share, a year earlier.Revenue rose 3% to $1.5 billion. Analysts surveyed by FactSet forecast revenue of $1.59 billion.Transaction revenue was $764 million and subscription and services sales were $656 million. The average market share of crypto assets on Coinbase's custody platform hit an all-time high.Coinbase anticipates third-quarter subscription and services revenue to be $665 million to $745 million, driven by higher average crypto prices and stablecoin revenue. Analysts were forecasting $752.9 million.Shares fell 4.5% to $361 in after-hours trading.The White House earlier this month passed the Clarity Act and Genius Act, two bills designed to provide a regulatory framework for digital assets and stablecoins. Coinbase has said the bills will make it easier for more investors to buy and sell crypto and stablecoins, which would be a boost for the exchange platform."These bills provide a clear regulatory foundation for stablecoins and digital assets, potentially unlocking new opportunities for Coinbase and reinforcing U.S. leadership in digital finance," Coinbase wrote in a letter to shareholders Thursday.Write to Katherine Hamilton at [email protected]