COIN up 2% After Coinbase Reports $1.45B Quarterly Revenue

Coinbase’s stock COIN saw a 2.75% pre-market uptick after the exchange dropped higher-than-expected quarterly earnings on Thursday. The exchange posted Q2 net revenue of $1.45 billion, more than the $1.4 billion Wall Street analysts speculated.

The attestation also showed that the US-based trading platform saw a net income of $36 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $596 million. Q2 2024 was Coinbase’s sixth consecutive quarter with a positive EBITDA, the report showed.

“Q2 was a quarter of strong progress for Coinbase and the crypto industry. In addition to solid financial results and continuing to build trusted products to help drive crypto adoption, Coinbase and the crypto industry made great strides towards achieving regulatory clarity in the US, which we believe will be a major unlock for innovation in the industry,” the largest US-based crypto firm stated.

Revenue Down From Q1

Despite an overall positive flow, some of Coinbase’s KPIs were down compared to its fiscal report from the first quarter of the year. Net revenue was down 11% from Q1 2024 when the firm recorded $1.64 billion. Also, the firm’s transaction revenue decreased from $1.07 billion to $780 million quarter-to-quarter.

However, Coinbase saw 17% subscription and service revenue growth from the previous quarter. The crypto firm reported $599 million from the product, up from $510.0 million in Q1. Overall, Coinbase recorded an increment on its balance sheet, up $733 million from the previous quarter to $7.8 billion.

Regulatory Strides

Coinbase stated that it has made meaningful progress with its push for a clearer regulatory environment in the United States. The firm has a Stand With Crypto movement, which has garnered over 1.3 million advocates.

“Crypto legislation has become a mainstream issue in the US, garnering bipartisan support, and there is real energy within both the House and the Senate to pass meaningful legislation,” the report noted.

The crypto sector saw some big wins in the last quarter, with the approval of an Ethereum exchange-traded fund (ETF). The approval of the Ethereum product may have nullified the Securities and Exchange Commission’s (SEC) view of the asset as a security. CoinTab recently reported that the Wall Street top regulator filed to drop charges that coins like Solana, MATIC, and Cardano were securities.