Coinbase Stock Slides After Q2 Sales Miss Estimates

Shares of Coinbase Global (COIN) slid late Thursday after the crypto exchange reported second-quarter earnings that missed analyst estimates.

Coinbase reported revenue of $1.49 billion and adjusted earnings before interest, taxes, depreciation and amortization of $512 million. Analysts tracked by Visible Alpha anticipated $1.56 billion in revenue and adjusted EBITDA of about $564 million. Revenue from transactions as well as subscriptions and services were down quarter-over-quarter, though the latter, at $656 million, was within the range Coinbase previously forecast at $600 million to $680 million.

The stock was recently down about 4% in late trading after finishing the regular session essentially unchanged.

Lower trading volume dragged on transaction revenue, as it did in the first. A March increase in stablecoin pair trade fees weighed on trading volume, a company representative told Investopedia. However, Coinbase sees July transaction revenue of roughly $360 million; if that pace keeps up through the next couple months, third-quarter results should be better.

The company also expects subscriptions and services to rise, driven primarily by higher average crypto prices and stablecoin revenue. Its partnership with Circle should help with stablecoin USDC usage ticking up.

Coinbase has been pulling on growth levers all year, making acquisitions and inking partnership deals with big firms in the financial industry. It acquired crypto options exchange Deribit in May, and earlier this month acquired token management shop Liquifi. It partnered with American Express (AXP) for a bitcoin-rewards credit card in June. And recently, it joined forces with JPMorgan Chase (JPM) to offer customers another way to link their bank accounts to the exchange.

Coinbase shares are up nearly 50% year-to-date.

This article has been updated since it was first published to reflect added information and new share-price movement.

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