Last week we provided a guide on what to look out for in Coinbase’s Q2 earnings.
Now that they have fully reported and the dust has settled, let’s take a look at how they did:
$708M in revenue vs analysts’ expectations of $628M
Staking revenue up 19% from the previous quarter
Subscription & services revenue was $335M, the first time that non-trading revenue surpassed trading revenue ($327M)
$97M net loss, but positive EBITDA of $194 million
Quarterly recurring operating expenses cut by 50%
Regardless of how Coinbase did in regards to analysts expectations (which they beat, by the way), if we take a step back and evaluate how the business is doing as just a business, it’s quite obvious that it is well run. For example:
It is pretty much profitable in what is a bear market.
It is making smart financial decisions such as buying back 64.5M of convertible notes for 45.5M or raising billions of dollars at low interest rates.
It is moving quickly on new tech and offerings such as BASE which has officially launched today.
If it wasn’t for regulatory concerns, this would be an easy “buy".
But, if the company continues to show positive regulatory momentum, you can expect the 160% YTD gain to be only the start.
