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Jun 30, 2021

Coinbase Q2 2021 Earnings Report

Coinbase experienced strong growth and diversification in Q2 2021.

Key Takeaways

Coinbase had a strong Q2 2021, with significant growth in retail MTUs, trading volume, and assets on the platform. The company generated $2.0 billion in net revenue and $1.6 billion in net income, driven by a strong crypto market environment and increased user engagement.

Retail Monthly Transacting Users (MTUs) grew to 8.8 million, up 44% from Q1 2021.

Net revenue reached $2.0 billion, including $1.9 billion in transaction revenue.

Net income was $1.6 billion and Adjusted EBITDA was $1.1 billion.

Institutional Trading Volume was $317 billion, an increase of 47% compared to Q1.

Total Revenue
$2.23B
Previous year: $186M
+1095.4%
EPS
$6.42
Previous year: $0.16
+3912.5%
Monthly Transacting Users
8.8M
Previous year: 1.5M
+486.7%
Assets on Platform
$180B
Previous year: $26B
+592.3%
Gross Profit
$1.89B
Previous year: $163M
+1061.2%
Cash and Equivalents
$4.37B
Previous year: $687M
+535.1%
Free Cash Flow
$3.98B
Previous year: $167M
+2292.0%
Total Assets
$15.8B

Coinbase

Coinbase

Coinbase Revenue by Segment

Forward Guidance

Coinbase anticipates volatility in the crypto industry will persist in the near term, resulting in unpredictable quarterly financial results. They are focused on long-term execution and believe products like DeFi will be used by mainstream customers and institutions soon.

Positive Outlook

  • Continue to deliver consistent platform performance.
  • Bring more assets to Coinbase faster.
  • Ship more products in international markets.
  • Integrate with third-party interfaces and self-custody.
  • Scale to match industry growth.

Challenges Ahead

  • MTUs can fluctuate with crypto asset prices and volatility.
  • Trading Volume can fluctuate with crypto asset prices and volatility.
  • Transaction revenue can fluctuate with crypto asset prices and volatility.
  • Regulatory clarity remains slow to come.
  • Business is inherently unpredictable.

Revenue & Expenses

Visualization of income flow from segment revenue to net income