Shulou(Shulou.com)11/24 Report--

Beijing time, August 10 news, the cryptocurrency exchange Coinbase today announced the company's financial results for the second quarter of 2022.

According to the report, Coinbase's net income in the second quarter was $803 million, down sharply from $2.033 billion in the same period last year; the net loss was $1.094 billion, compared with a net profit of $1.606 billion in the same period last year; and the diluted net loss attributable to common shareholders was $1.1 billion, compared with $1.593 billion in the same period last year. The net diluted loss per share attributable to common shareholders was $4.98, compared with $6.42 per diluted net profit per share attributable to common shareholders in the same period last year.

Coinbase's second-quarter net income and diluted earnings per share failed to meet Wall Street analysts' expectations, causing its shares to fall nearly 5 per cent in after-hours trading.

Main results: Coinbase posted a net loss of $1.094 billion for the quarter ended June 30, compared with a net profit of $1.606 billion a year earlier.

Coinbase posted a diluted net loss of $1.1 billion for common shareholders in the second quarter, compared with $1.593 billion for common shareholders in the same period a year earlier, and a diluted net loss of $4.98 per share for common shareholders, compared with $6.42 for common shareholders in the same period a year earlier, which fell short of analysts' expectations. On average, 16 analysts had expected a diluted loss of $2.65 per share for Coinbase in the second quarter, according to Yahoo Finance.

Coinbase's second-quarter net income was $803 million, down sharply from $2.033 billion a year earlier and below analysts' expectations. On average, 18 analysts had expected Coinbase's second-quarter revenue to reach $832.23 million, according to Yahoo Finance.

By business unit: (1) Coinbase's total trading revenue in the second quarter was $655.2 million, compared with $1.9304 billion in the same period last year. Of this total, net trading revenue from retail investors was $616.2 million, compared with $1.828 billion a year earlier, and trading revenue from institutional investors was $39 million, compared with $102.4 million a year earlier. (2) Coinbase's total subscription and service revenue in the second quarter was $147.4 million, compared with $102.6 million in the same period last year. Of this total, blockchain incentive revenue was $68.4 million, compared with $34.4 million in the same period last year; escrow fee revenue was $22.2 million, compared with $31.7 million in the same period last year; revenue from profitable activities was $2.5 million, compared with $16.9 million in the same period last year; interest income was $3250, compared with $6.5 million in the same period last year. Revenue from other subscriptions and services was $21.8 million, compared with $13.1 million a year earlier.

Bitcoin accounted for 31 per cent of Coinbase's trading revenue in the second quarter, compared with 26 per cent a year earlier, 22 per cent from Ethernet trading, compared with 26 per cent a year earlier, and 47 per cent from other encrypted assets, compared with 48 per cent a year earlier.

Coinbase's total operating expenses were $1.8527 billion in the second quarter, compared with $1.3532 billion a year earlier and up $132 million, or 8 per cent, from $1.7209 billion in the previous quarter. Of this total, Coinbase's transaction expenses in the second quarter were $167.2 million, accounting for 21% of net revenue, compared with $335.4 million in the same period last year, accounting for 16% of net revenue; sales and marketing expenses were $140.9 million, accounting for 18% of net revenue, compared with $195.7 million in the same period last year, accounting for 10% of net revenue Technology and development expenses were $609.2 million, compared to $291.5 million in the same period last year; general and administrative expenses were $470.2 million, compared to $248.2 million in the same period last year; restructuring expenses were $42.5 million, compared to zero in the same period last year; other operating expenses were $4.228 billion, compared with $2.824 billion in the same period last year.

Coinbase's adjusted EBITDA (net income before interest, tax, depreciation and amortization) was-$151 million in the second quarter, compared with $1.15 billion in the same period a year earlier.

Total cash and cash equivalents held by Coinbase at the end of the second quarter were $5.682 billion, compared with $4.366 billion at the end of the second quarter of fiscal 2021.

Operational metrics: Coinbase had 103 million certified users in the second quarter, nearly tripling from 36 million in the second quarter of 2020.

Coinbase had 9 million monthly trading users (MTU) in the second quarter, up from 8.8 million in the same period last year, but down from 9.2 million in the first quarter of 2022.

Coinbase's trading volume was $217 billion in the second quarter, compared with $462 billion a year earlier. Of this total, retail investors traded $46 billion, compared with $145 billion a year earlier, while institutional investors traded $171 billion, compared with $317 billion a year earlier.

In terms of trading volume of various encrypted assets, bitcoin transactions in Coinbase accounted for 31 per cent of total trading volume in the second quarter, compared with 24 per cent in the same period last year; ethercoin accounted for 22 per cent of total trading volume, compared with 26 per cent in the same period last year; and other encrypted assets accounted for 47 per cent of total trading volume, compared with 50 per cent in the same period last year.

Coinbase's total assets on the platform were $96 billion in the second quarter, compared with $180 billion a year earlier. Of this total, the platform assets of retail investors were $47 billion, compared with $88 billion in the same period last year, and those of institutional investors were $49 billion, compared with $92 billion in the same period last year.

In terms of platform assets of various encrypted assets, assets on Coinbase's bitcoin platform accounted for 44% of total platform assets in the second quarter, compared with 47% in the same period last year, and Ethernet platform assets accounted for 20% of total platform assets, compared with 24% in the same period last year. Other encrypted assets on the platform accounted for 29 per cent of the total platform assets, compared with 25 per cent in the same period last year; French currency platform assets accounted for 7 per cent of the total platform assets, compared with 5 per cent in the same period last year.

Performance outlook: Coinbase said monthly trading users fell to 8 million in July; based on that, the company expects monthly trading users to decline in the third quarter of fiscal 2022 compared with the second quarter. Meanwhile, trading volume in July was $51 billion, reflecting a downward trend, which is expected to be lower in the third quarter of fiscal 2022 than in the second quarter if this trend continues.

Coinbase expects subscription and services revenue in the third quarter of fiscal 2022 to be slightly higher than in the second quarter, with transaction expenses at the bottom of the range of 20% to 29% of net revenue, sales and marketing expenses expected to be about $100m, and technology and development expenses as well as general and administrative expenses combined to be about $1 billion, including about $400m in equity incentives.

For the entire fiscal year 2022, Coinbase expects the annual average number of monthly transaction users to be between 7 million and 9 million, average transaction revenue per user will be at the low end of the range of $20 to $29, revenue from subscriptions and services will be more than $600 million, transaction expenses will be at the low end of the range of 20% to 29% of net revenue, and sales and marketing expenses are expected to be between $500 million and $600 million. The sum of technology and development expenses, as well as general and administrative expenses, is expected to be between $4 billion and $4.25 billion, with tax rates expected to be in the middle to high end of the 10 to 19 per cent range.

Share price movements: Coinbase shares fell $10.34, or 10.55%, to close at $87.68 in regular Nasdaq trading. Coinbase shares fell another $4.19, or 4.78 per cent, to $83.49 in after-hours trading as of 06:12 EDT on Tuesday (06:12 Beijing time on Wednesday). In the past 52 weeks, the highest price for Coinbase is $368.90 and the lowest price is $40.83.

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