Coinbase Global Inc (NASDAQ: COIN) reported its financial results for the second quarter on Tuesday that beat Wall Street estimates. Shares of the company tanked about 2.0% in after-hours trading. The $56.27 billion company now has a price to earnings ratio of 115.37.
Financial performance
Coinbase said it generated $2.23 billion of revenue in the second quarter versus $1.78 billion expected. It earned $6.42 per share in the recent quarter, which wasn’t comparable to estimates. The Nasdaq-listed firm had posted $178 million of revenue in the same period last year and $1.6 billion in Q1.
The United States’ largest cryptocurrency exchange valued its net profit in Q2 at $1.6 billion that represents a massive 4,900% annualised growth amidst volatile trading in cryptocurrencies. Coinbase added 2.7 million monthly transacting users in the second quarter.
Other notable figures
The Delaware-based company generated $1.9 billion in revenue from transactions and more than $100 million from subscriptions and services.
Coinbase said Bitcoin accounted for roughly 24% of the total quarterly trading volume versus 39% in the prior quarter (Q1) – an indication that trading volume diversified in the recent quarter. Retail trading volume was up 21% on a year over year basis.
The crypto company didn’t give guidance for the future but warned that trading volume was likely to tank in the third quarter. According to Refinitiv, analysts forecast Coinbase to generate $6.29 billion of revenue this year on $7.76 of per-share earnings.
Letter to shareholders
In a letter to shareholders, Coinbase said:
“We intend to prioritise reinvestment into the business to continue to grow the crypto-economy through both crypto bull and bear markets alike, and through both organic and inorganic means. Accordingly, we do not intend to issue a dividend or similar return of capital to shareholders at any point in the near future.”
Earlier this year, Coinbase hired an ex-Goldman executive to lead regulatory issues.
The post Coinbase reported market-beating quarterly results: here’s the key takeaways appeared first on Invezz.
from USA – Invezz https://ift.tt/3fReAHI
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments