Tuesday, August 9, Eastern Time, US stock After the market trading, the cryptocurrency exchange Coinbase (COIN) released its financial report for the second quarter. Under the severely spread of the Lehman crisis in the cryptocurrency market this year, Coinbase's revenue was lower than expected but monthly trading users were higher than expected. US stocks rose by more than 7% after the market trading and turned 6%.
Coinbase closed down 10.55% at $87.68 on Tuesday, with a cumulative decline of 65% since the beginning of the year. As of the time being, the after-hours decline exceeded 5%.
Specifically, its core financial indicators:
- revenue in the second quarter was US$808.3 million, lower than analysts' expectations of US$854.8 million, a year-on-year decrease of 63% and a month-on-month decrease of 31%. Other revenues in the second quarter were $057.2 million, higher than analysts' expectations of $03.66 million.
- 's second-quarter loss was US$1.1 billion, and if non-cash impairment fees were deducted, the net loss would be US$647 million; the adjusted EBITDA was negative US$151 million.
- 's monthly trading users (MTU) in the second quarter was 9 million, higher than analysts' expectations of 8.4 million.
- 's transaction amount in the second quarter (platform) was US$217 billion, lower than analysts' expectations of US$220.44 billion.
- 's total operating expenses in the second quarter were US$1.9 billion, an increase of 8% year-on-year.
In addition, Coinbase also provided third quarter guidance and full-year guidance.
- is expected to be lower than in the second quarter.
- is expected to have an average annual MTU of 7-9 million, analysts expect 8.7 million, and the company previously expects 5-15 million.
- expects subscription and service revenue to exceed $600 million throughout the year.
Regarding the performance of this quarter, Coinbase said in its financial report that the sharp shrinkage of cryptocurrency asset prices seriously affected its second-quarter financial performance, and recommended that investors evaluate their performance in the same asset cycle as the same asset cycle.
Since 2010, we have observed four major crypto asset price cycles. Each previous cycle lasted for two to four years and caused a significant increase in the market value of cryptocurrencies compared to the previous cycle. There is a great increase compared to the previous cycle. Each previous cycle brought new market participants, developers and products, further promoting the development of the crypto economy.
Historically, previous peak-to-trough declines were 84%, 85%, and 94%, respectively, although these previous declines were not combined with a broader macro recession. Recently, from the recent peak, from the lows in November 2021 to June 2022, Bitcoin's market value has fallen by 74%.
Coinbase pointed out that compared the performance in the second quarter of 22 and the second quarter of 20, both of which increased by nearly triple before the latest price cycle started; monthly transaction users increased by 6 times from 1.5 million to 9 million; quarterly total transaction volume increased by about 8 times from 28 billion to 217 billion; assets on the platform increased by nearly 4 times from 26 billion to 96 billion.
Coinbase says the bear market of cryptocurrencies will greatly affect its financial situation in the short term, but it has been working to build a strong balance sheet to withstand the storm.
During the last cryptocurrency decline, we started investing in less volatile assets. We are pleased to see the continued growth in our subscription and service revenue.
The market for falling is the builder's market, and many casual competitors are retreating here. We are optimists, focusing on building great products and services for our users. We are very proud of the speed of product deployment and the feedback we have received recently from our customers. We firmly believe that if we continue to focus on building the right products and services, we will be stronger than before.
This Monday, JPMorgan Chase said in a report that the cryptocurrency market has basically reached the bottom of the cycle after Bitcoin fell 75% from its all-time high. Morgan Stanley analysts believe that there are two main reasons for promoting the recent market improvement. The impact of Luna collapse is limited, and the other reason is the merger and upgrade of Ethereum.
Of course, during the long period of the recovery of the overall crypto market, Coinbase still needs to face an investigation from SFC (SEC) - whether Americans are improperly allowed to trade digital assets that should be registered as securities.However, Coinbase denied non-compliance. Even if you escape, the supervision it faces will be stricter in the future. Wall Street News earlier article mentioned that the US Senate will include cryptocurrencies in commodity supervision.
It is worth noting that just recently, the former senior product manager of Coinbase was also accused of suspected insider trading.
In June this year, Coinbase fired 18% of its employees, involving about 1,100 employees. CEO Brian Armstrong said it was "over-hire" and said the company would limit recruitment in mobile positions and in some (regular) positions.
In addition, Goldman Sachs downgraded Coinbase rating to "sell" a few weeks ago, saying the company "needs to cut costs significantly" to prevent cash from drying out.
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