• Coinbase reported $708 million in total revenue and $663 million in net revenue in Q2, but experienced a net loss of 97 million.
• Transaction revenue was split between consumer and institutional transactions, down 12% and 33% Q/Q respectively.
• Coinbase also reported an adjusted EBITDA of $194 million ahead of the launch of Base.
Coinbase Reports Earnings for Q2 2020
Coinbase published its Q2 earnings report on Aug. 3 revealing that it saw significant revenue despite overall losses. The company reported $708 million in total revenue, marking a decline of 8% quarter-over-quarter (Q/Q) and $663 million in net revenue, marking a decline of 10% Q/Q. The value of the company’s stock remained largely unchanged after release of these figures.
Transaction Revenue
Coinbase saw $327 million in transaction revenue during the second quarter, down 13% Q/Q. This was split between two categories: consumer and institutional transactions. Consumer transactions had a turnover volume of $14 billion while institutional transactions had a turnover volume of $78 billion resulting in respective revenues for both groups amounting to 310$M and 17$M respectively; marking a decline for both groups by 12% and 33% since last quarter.
Net Loss & Adjusted EBITDA
The exchange also suffered from a net loss amounting to 97$M with an adjusted EBITDA standing at 194$M ahead of their new product launch – Base which is set to be released this summer.
Market Reaction
Despite reporting lower than expected numbers compared to previous quarters, the value of Coinbase stock remains largely unchanged as investors remain confident that the exchange will continue growing its user base through new products such as Base which is set to be launched this summer season .
Conclusion
Overall, Coinbase’s Q2 report showed mixed results with some areas suffering declines while other areas like adjusted EBITDA being more promising looking forward into the future with their new product launches such as Base slated for later this year
