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Sep 30, 2021
Coinbase Q3 2021 Earnings Report
Coinbase had a strong quarter driven by deeper customer engagement, product innovation, and industry momentum.
Key Takeaways
Coinbase's Q3 2021 results showed a net revenue of $1.2 billion, driven by $1.1 billion in transaction revenue and $145 million in subscription and services revenue. Net income was $406 million, and Adjusted EBITDA was $618 million. The company saw growth in verified users and retail monthly transacting users (MTUs).
Verified Users grew to 73 million and retail Monthly Transacting Users (MTUs) were 7.4 million.
Net revenue was $1.2 billion, including $1.1 billion in transaction revenue and $145 million in Subscription and services revenue.
Net income was $406 million and Adjusted EBITDA was $618 million.
Approximately 28% of retail MTUs both invested and engaged with at least one other product.
Coinbase
Coinbase
Forward Guidance
Coinbase anticipates higher retail MTUs and total trading volume in Q4 as compared to Q3. For full year 2021, the company expects average net transaction revenue per user will be in the high $50’s per month.
Positive Outlook
- Total crypto market capitalization increased roughly 35% in October.
- Retail MTUs and total trading volume were higher in October.
- Trends include higher levels of activity among retail traders.
- Blended average retail fee rates increased in October compared to Q3 levels.
- Expects average net transaction revenue per user will be in the high $50’s per month.
Challenges Ahead
- Business is inherently unpredictable, especially in these early days of the cryptoeconomy.
- Retail MTUs, Trading Volume, and revenue can fluctuate, potentially materially, with crypto asset prices and crypto asset volatility.
- Tightening full year 2021 outlook scenarios.
- Assumes moderate-to-high crypto asset price volatility.
- Sales and marketing expenses will be approximately 10% of net revenue for full-year 2021.