Coinbase Global Inc COIN shares are trading lower Wednesday after the company reported worse-than-expected financial results.
Coinbase reported second-quarter revenue of $802.6 million, which missed the estimate of $830.52 million, according to Benzinga Pro. The crypto company reported a quarterly net loss of $4.98 per share, which missed the estimate for a loss of $2.68 per share.
Coinbase said trading volume was down 30% quarter-over-quarter and transaction revenue was down 35% compared to the first quarter. The company had 9 million monthly transacting users in the quarter, up from 8.8 million year-over-year.
Bitcoin BTC/USD represented 31% of trading volume and Ethereum ETH/USD made up 22% of trading volume.
"Despite crypto market capitalization declining $1.3 trillion or ~60% in Q2, primarily driven by macroeconomic conditions and shocks to the crypto credit environment, we remain as bullish as ever on the future of this technology. Coinbase is an all-weather company with experience in navigating through crypto asset price cycles," the company said in a letter to shareholders.
Coinbase said it expects lower monthly transacting users and trading volume in the third quarter compared to the second quarter. The company expects full-year 2022 monthly transacting users to be between 7 million and 9 million.
- Piper Sandler analyst Richard Repetto maintained Coinbase with a Overweight rating and lowered the price target from $120 to $115.
- JMP Securities analyst Devin Ryan maintained Coinbase with a Market Outperform rating and lowered the price target from $205 to $195.
COIN Price Action: Coinbase has a 52-week high of $258.80 and a 52-week low of $40.83.
The stock was down 4.87% at $83.41 at time of publication.
Photo: courtesy of Coinbase.
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