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Jun 30, 2024
Coinbase Q2 2024 Earnings Report
Coinbase experienced strong progress with solid financial results, advancements in regulatory clarity, and innovative product updates.
Key Takeaways
Coinbase reported a total revenue of $1.4 billion and a net income of $36 million for Q2 2024. The company's subscription and services revenue reached nearly $600 million, and its balance sheet strengthened to $7.8 billion in USD resources. Coinbase also saw progress in achieving regulatory clarity and made innovative product updates.
Total revenue was $1.4 billion, with subscription and services revenue growing to $599 million.
Net income reached $36 million, impacted by $319 million in pre-tax crypto asset losses.
Adjusted EBITDA was $596 million, marking the 6th consecutive quarter of positive Adjusted EBITDA.
USD resources strengthened to $7.8 billion, up $733 million Q/Q.
Coinbase
Coinbase
Forward Guidance
Coinbase anticipates Q3 subscription and services revenue to be within a range of $530-$600 million. They generated approximately $210 million of total transaction revenue in July 2024.
Positive Outlook
- Expects technology & development and general & administrative expenses to increase Q/Q.
- Plans to prudently increase headcount primarily to support product and international expansion.
- Expects total stock-based compensation in the second half of the year to be largely consistent with the first half of the year.
- Sales and marketing expenses are expected to increase Q/Q, primarily driven by higher variable digital marketing.
- Continue to take a disciplined approach to balancing marketing investments with growth.
Challenges Ahead
- Q3 range reflects some modest headwinds, including a 3% decline in the average price of Ethereum in July as compared to the Q2 average.
- Expectations of a September rate cut.
- An increase in expenses related to USDC as we work to drive global adoption of USDC as the most compliant stablecoin.
- A one-time $8M blockchain rewards revenue benefit in Q2.
- Given the volatility of crypto markets, the cost to acquire customers can change rapidly within the quarter, which necessitates a wider range to accommodate potential changes in market conditions.