Loading...
01/09 23:16
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The acquisition of Deribit and international expansion show strong strategic moves. The Q&A highlights positive partnerships and growth in stablecoin and payment solutions. While there are some uncertainties in tokenization timelines, the overall sentiment is positive due to strategic partnerships, expansion, and innovation in payment and lending products.
Total Revenue $1.5 billion, with a year-over-year change not explicitly mentioned. The revenue was driven by innovative product launches and strong financial performance.
Adjusted EBITDA $512 million, with a year-over-year change not explicitly mentioned. This reflects the company's focus on operational efficiency and cost management.
Net Income $1.4 billion, including a $1.5 billion unrealized gain on strategic investments, a $362 million gain from crypto investment portfolio remeasurements, and a $307 million expense from a data theft incident.
Adjusted Net Income $33 million, excluding gains and losses from investment portfolios, reflecting recurring operating business results.
Consumer Spot Trading Volume $43 billion, down 45% year-over-year due to lower volatility and a shift towards simpler trading environments.
Consumer Trading Revenue $650 million, down 41% year-over-year, impacted by lower consumer spot trading volume.
Institutional Spot Trading Volume $194 billion, down 38% year-over-year, influenced by market conditions and strategic investments in incentives and rebates.
Institutional Transaction Revenue $61 million, down 38% year-over-year, due to increased investments in incentives and rebates programs.
Subscription and Services Revenue $656 million, with growth in native units like USDC, staking, and custody assets, but offset by lower asset prices in Ethereum and Solana.
Operating Expenses $1.5 billion, including a $307 million expense from a data theft incident. Excluding this, operating expenses declined 9% year-over-year.
Everything Exchange: Coinbase is building an 'everything exchange' to enable trading of all asset types on crypto rails. They listed over 300 assets and plan to integrate decentralized exchanges into the Coinbase app, enabling access to millions of tokens. They also launched perpetual futures and acquired Deribit, a leading crypto options exchange.
Tokenized Equities: Coinbase is working on launching tokenized equities to bring equities onto crypto rails, offering global coverage, 24/7 trading, and instant settlement.
Stablecoin Payment APIs: Introduced APIs for businesses to accept and pay in stablecoins, with Shopify as a partner.
Regulatory Clarity: Coinbase sees increased regulatory clarity as a driver for growth, positioning itself as a trusted partner for governments and institutions.
Crypto-as-a-Service: Over 240 businesses, including BlackRock and PayPal, use Coinbase's services for custody, trading, and payments.
Revenue and Profitability: Total revenue was $1.5 billion, with adjusted EBITDA of $512 million. Net income was $1.4 billion, including gains from strategic investments and crypto portfolio.
Cost Management: Operating expenses were $1.5 billion, impacted by a $307 million data theft incident. Excluding this, expenses declined 9%.
Focus on Core Businesses: Coinbase is focusing on trading and stablecoin payments as core growth areas.
Headcount Growth: Coinbase plans to increase headcount in Q3 to support product development and growth opportunities.
Regulatory Environment: The company is navigating a complex regulatory environment, including the need for compliance with emerging regulations and the potential impact of the GENIUS Act on stablecoin innovation.
Market Volatility: Crypto asset volatility declined by 16%, and non-Bitcoin asset market cap declined by 11%, impacting trading volumes and revenue.
Trading Volume Decline: Total trading volume declined 40%, with consumer spot trading volume down 45% and institutional spot trading volume down 38%, driven by lower volatility and intentional pricing changes.
Data Theft Incident: A data theft incident resulted in a $307 million expense, materially impacting GAAP profitability.
Economic and Macro Conditions: Shifting macroeconomic conditions, including trade policy considerations and recession concerns, are impacting risk assets broadly, including crypto.
Subscription and Services Revenue: Underlying asset price declines, particularly in Ethereum and Solana, and protocol reward rate headwinds offset growth in native units and custody assets.
Operating Expenses: Total operating expenses were $1.5 billion, with an 8% increase in full-time employees, adding cost pressures.
Q3 Revenue Outlook: Q3 is off to a strong start, with higher asset prices and higher volatility. July transaction revenue is approximately $360 million. Subscription and services revenue is expected to be within the range of $665 million to $745 million, up approximately 8% quarter-over-quarter at the midpoint, driven by higher average crypto prices and stablecoin revenues.
Q3 Expenses: Technology and development and general and administrative expenses are expected to be between $800 million and $850 million. Sales and marketing expenses are projected to be in the range of $190 million to $290 million. Headcount growth is expected to increase, directed into product areas.
Future Market Trends: Opportunities for growth have expanded substantially with increased regulatory clarity. The company is leaning into this opportunity with strategic investments and product development.
The selected topic was not discussed during the call.
The earnings call summary and Q&A session reveal positive indicators: strong Q3 revenue outlook, strategic investments due to regulatory clarity, and growth in subscription services. Partnerships with major institutions like JPMorgan and Shopify, as well as the integration of Deribit, bolster the sentiment. Although there are concerns about AWS outages and unclear responses on certain topics, the overall narrative is positive, with a focus on market expansion and product development. These factors suggest a likely positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
