NASDAQ$COIN

Coinbase Global Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Coinbase experienced strong progress with solid financial results, advancements in regulatory clarity, and innovative product updates.

Coinbase reported a total revenue of $1.4 billion and a net income of $36 million for Q2 2024. The company's subscription and services revenue reached nearly $600 million, and its balance sheet strengthened to $7.8 billion in USD resources. Coinbase also saw progress in achieving regulatory clarity and made innovative product updates.

  • Total revenue was $1.4 billion, with subscription and services revenue growing to $599 million.
  • Net income reached $36 million, impacted by $319 million in pre-tax crypto asset losses.
  • Adjusted EBITDA was $596 million, marking the 6th consecutive quarter of positive Adjusted EBITDA.
  • USD resources strengthened to $7.8 billion, up $733 million Q/Q.

Headline financials

Total Revenue

$1.45B

Previous: $708M+104.8%
EPS

$0.14

Previous: -$0.42+133.3%
Capital Expenditures

$0.00

Previous: -$379K+100.0%
Free Cash Flow

$36.2M

Previous: -$97.8M+137.0%
Net Income

$36.2M

Previous: -$97.4M+137.1%
Operating Income

$343M

Previous: -$73.6M+566.3%
Gross Profit

$1.45B

Previous: $708M+104.8%
Cash & Equivalents

$7.23B

Previous: $5.17B+39.8%
Total Assets

$287B

Previous: $138B+108.5%
Stock-Based Comp

$218M

Previous: $200M+9.1%

Revenue & EPS history

Coinbase · Revenue · Quarterly

$1.45B

Q2 2024+104.8%vs Q2 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Coinbase · $317M total across 2 segments · Q3 2023

  • Interest and Finance Fee Income
    $243M+138.2%
  • Blockchain Rewards
    $74.5M+18.6%

Forward guidance

Coinbase anticipates Q3 subscription and services revenue to be within a range of $530-$600 million. They generated approximately $210 million of total transaction revenue in July 2024.

Tailwinds

  • Expects technology & development and general & administrative expenses to increase Q/Q.
  • Plans to prudently increase headcount primarily to support product and international expansion.
  • Expects total stock-based compensation in the second half of the year to be largely consistent with the first half of the year.
  • Sales and marketing expenses are expected to increase Q/Q, primarily driven by higher variable digital marketing.
  • Continue to take a disciplined approach to balancing marketing investments with growth.

Headwinds

  • Q3 range reflects some modest headwinds, including a 3% decline in the average price of Ethereum in July as compared to the Q2 average.
  • Expectations of a September rate cut.
  • An increase in expenses related to USDC as we work to drive global adoption of USDC as the most compliant stablecoin.
  • A one-time $8M blockchain rewards revenue benefit in Q2.
  • Given the volatility of crypto markets, the cost to acquire customers can change rapidly within the quarter, which necessitates a wider range to accommodate potential changes in market conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.8%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.3%

Avg return

30 days after

32%

8 / 25 earnings

Positive

+20.1%

Q1 2023

Best reaction

-35.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+4.6%-21.0%
Q4 2025+16.5%+16.3%+38.6%
Q3 2025-2.2%-2.8%-17.0%
Q2 2025-16.7%-19.6%-19.4%
Q1 2025-3.6%+27.6%+21.7%
Q4 2024-8.0%-13.2%-38.6%
Q3 2024-18.4%-15.2%+34.8%
Q2 2024-8.9%-13.5%-18.3%
Q1 2024+6.3%+2.0%+7.5%
Q4 2023+12.4%+8.1%+51.1%
Q3 2023+10.3%+14.5%+71.9%
Q2 2023-3.5%-2.6%-13.8%
Q1 2023+20.1%+24.2%+33.1%
Q4 2022-6.2%-10.4%+1.7%
Q3 2022-3.1%-16.3%-21.5%
Q2 2022-4.0%-7.7%-25.4%
Q1 2022-35.7%-18.7%-23.6%
Q4 2019+6.2%+8.3%+4.0%
Q4 2021+2.4%+13.6%+8.1%
Q3 2020-5.9%-3.4%-28.4%
Q3 2021-7.2%-3.1%-25.4%
Q2 2020-4.9%-4.8%-7.9%
Q2 2021-0.7%-6.9%-8.6%
Q4 2020-6.4%-15.2%-15.5%
Q1 2021-8.9%-15.7%-21.0%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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