Coinbase Global Inc. (NASDAQ: COIN) Beats Analyst Q2 2021 Revenue and Earnings Estimates
Coinbase Global Inc. (NASDAQ: COIN) shares rose slightly after the crypto exchange indicated that trading volume and monthly users would be lower in Q3 2021.
- New York, NY (1888PressRelease) August 13, 2021 - Coinbase Global Inc. (NASDAQ: COIN) shares rose slightly after the crypto exchange indicated that trading volume and monthly users would be lower in Q3 2021.
Coinbase tops Wall Street estimates
The company topped sales and earnings estimates in Q2 2021 as transaction revenue and trading volume increased. Revenue was $2.2 billion, beating Wall Street estimates of $1.85 billion. Adjusted EBITDA was $1.15 billion exceeding Wall Street estimates of $854 million.
The company doesn't offer forward guidance stated that Q3 monthly active users and trading volume would be lower but raised full-year average monthly user’s estimates.
Coinbase's earnings during the quarter were boosted by increased user growth and transactions on the platform. Trading volume increased to $462 billion, up from $335 billion in Q1 2021, and exceeded the $381.6 billion forecast. In addition, retail monthly transactional users surged by 44% to 8.8 million in the quarter, while overall verified users increased to 68 million from 56 million in Q1.
Around the time of Coinbase’s IPO, BTC's price reached an all-time high of $64,000. The company indicated that Q4 showed the volatility anticipated at the maiden days in the cryptocurrency sector. This is because volatility and cryptocurrency prices are connected with revenue, and the environment influenced Q2 revenue results.
Analyst gives Coinbase "Hold" rating
The exchange’s outlook might be weighing on the stock as crypto prices continue to slump. As a result, Mizuho's Dan Dolev maintained the "Hold" rating on the stock, stating that results in the future will be a "coin toss."
Dolev indicated, “With August average daily volumes running 80% above July, the excitement around the stock in the past week is somewhat understandable. However, since volatility can fade just as quickly as it comes, Coinbase’s fiscal-year outlook remains somewhat of a coin toss.”
The company added 1000 institutional investors, and around 10% of hedge funds have started using its services. CFO Alesia Haas said, “In the past cycles we saw much more correlation between investment behaviour. Now we are starting to see that there could be client growth during different business cycles.”
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