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Jun 30, 2023
Coinbase Q2 2023 Earnings Report
Coinbase demonstrated strong execution and financial discipline, generating positive Adjusted EBITDA and increasing $USD Resources.
Key Takeaways
Coinbase's Q2 2023 results showed a net loss of $97 million but a positive Adjusted EBITDA of $194 million. Total revenue was $708 million, and the balance sheet strengthened to $5.5 billion in $USD resources.
Recurring operating expenses decreased nearly 50% Y/Y.
Positive Adjusted EBITDA was generated.
$USD Resources increased for the first time since late 2021.
Expanded access to derivatives products to customers outside the US.
Forward Guidance
Coinbase provided guidance for Q3 2023, expecting subscription and services revenue to be at least $300 million. They also anticipate technology & development and general & administrative expenses to be $575-625 million, and sales & marketing expenses to be $80-90 million. The company aims to improve full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022.
Positive Outlook
- Q3 subscription and services revenue to be at least $300 million.
- The company aims to improve full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022.
- Technology & development and general & administrative expenses is expected to be higher in Q3 driven primarily by an increase in stock-based compensation.
- Sales and marketing expenses to be consistent with Q2, as the seasonal decline of spend tied to our NBA partnership is offset by increased USDC customer reward payouts driven by both higher on platform balances and higher reward rates.
- No material changes to assets on platform or average crypto market capitalization compared to the end of July.
Challenges Ahead
- The crypto industry remains volatile, as evidenced by ongoing uncertainty in the regulatory environment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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