Coinbase reported $1.4B in Q2 revenue, beating estimates despite lower profits
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Key receivers
Coinbase's Q2 revenue rose to $1.45 billion despite a decline in profits. Solana transactions accounted for 10% of Coinbase's transaction revenues in Q2.
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US-based crypto exchange Coinbase reported total revenue of $1.4 billion for Q2 2024, beating analysts' estimates of $1.36 billion but down from $1.6 billion in Q1. While the exchange's trading revenue is declining, stablecoin and base usage is growing exponentially.
Coinbase's Q2 earnings showed mixed results, with revenues beating expectations but profits falling sharply compared to the previous quarter. Marketing revenue was $781 million, down 27 percent from the quarter, while subscriptions and services revenue was $600 million.
Despite the decline in overall revenue, Coinbase highlighted several positive developments. The number of transactions on its Base Layer-2 network grew 300% compared to Q1. Stablecoin revenue increased to $240.4 million from $197.3 million in the previous quarter. In particular, Solana received 10 percent of the total trading revenue, the exchange reported.
However, the exchange's profitability took a hit. Net income fell to $36 million from nearly $1.2 billion in Q1. The company attributed the $319 million pre-tax crypto asset loss to its investment portfolio, which it said was “mostly unrealized – due to low crypto prices on June 30.” Adjusted EBITDA fell to $596 million from $1.01 billion in the prior quarter.
Looking ahead, Coinbase expects Q3 subscription and services revenue to be between $530 million and $600 million. The company expects increased technology, development and administrative expenses in Q3, driven by “indirect cost recognition” of stock-based compensation.
These results come at a critical time for Coinbase and the broader crypto industry. The exchange emphasized the development of regulatory transparency, “Advancement of crypto legislation is now a major issue.” Coinbase's Stand With Crypto initiative has gathered more than 1.3 million advocates, many in swing states, drawing attention from politicians from both parties.
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