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Coinbase Global (COIN) Q2 Earnings & Revenues Top Estimates

Coinbase Global’s COIN second-quarter 2021 earnings of $6.42 per share beat the Zacks Consensus Estimate of $2.49.

The outperformance came on the back of growth and diversification across its platform.

Coinbase Global, Inc. Price, Consensus and EPS Surprise

Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote

Operational Details    

Total revenues came in at $2.2 billion and beat the Zacks Consensus Estimate by 21.4%. The top line increased nearly 12-fold year over year, reflecting increases in transaction revenues, subscription and services revenues as well as other revenues.

Retail Monthly Transacting Users (MTUs) grew to 8.8 million, up 44% sequentially driven by the crypto market environment, product launches, marketing efforts, and the growing number of crypto assets the company supports. Verified Users were 68 million.

The company’s users generated $462 billion of trading volume in the reported quarter, up 38% sequentially. Total trading volume continued to diversify beyond Bitcoin into Ethereum and other crypto assets. Approximately 24% of second quarter total trading volume was concentrated in Bitcoin, down from 39% sequentially.

Total operating expenses increased more than ninefold year over year to $1.4 billion, attributable to increase in transaction expense, technology and development, sales and marketing and general and administrative.

Adjusted EBITDA was $1.1 billion in the reported quarter.

Financial Update

As of Jun 30, 2021, cash and cash equivalents were $4.4 billion, up about fourfold from the figure at 2020 end. Total assets were $15.8 billion, up nearly threefold from the level at 2020 end.

At the end of the quarter, long-term debt of the company was $1.4 billion.

Total shareholders’ equity was $3.4 billion at the end of the reported quarter, up 2.8% from the value on Dec 31, 2020.

Cash from operations increased nearly 12-fold year over year in the first half of 2021.

Guidance

The company estimates MTU in 2021 to be in the range of 5.5 million to 8 million.

Given solid year-to-date results, it continues to anticipate annual average net transaction revenue per user to exceed the historical range.

It expects meaningful institutional revenue growth in 2021 driven by transaction and custody revenue based on increasing volumes of institutional onboarding, increased capital allocations to crypto, and increased trading volumes from existing clients.

Sales and marketing expenses are estimated between 12% and 15% of net revenues in 2021. Transaction expenses will be in the low-to-mid teens as a percent of net revenues in 2021.

Zacks Rank

Coinbase Global currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Securities and Exchanges

Second-quarter earnings of Nasdaq NDAQ, MarketAxess Holdings MKTX and CME Group CME beat the respective Zacks Consensus Estimate.


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