Coinbase (COIN) showed a sharp decline in after-hours trading following its Q2 earnings announcement. The results were interpreted as causing market disappointment due to earnings and profitability indicators falling below Wall Street expectations. Immediately after the earnings release, Coinbase's stock price dropped by more than 9% in after-hours trading.
This quarter, Coinbase recorded total revenue of $1.5 billion (approximately 2.085 trillion won), which fell short of market expectations of $1.56-1.59 billion (approximately 2.168-2.210 trillion won). Net income was reported at $1.4 billion (approximately 1.946 trillion won), but adjusted net income excluding investment gains was only $33 million (approximately 45.8 billion won).
Particularly, the non-GAAP earnings per share (EPS) was recorded at $0.12 (approximately 167 won), significantly lower than the analysts' projection of $1.49 (approximately 2,071 won). Analysts suggest that the decline in cryptocurrency spot trading volume suppressed transaction fee revenue across the board.
Market experts noted that "these results signal Coinbase's difficulty in balancing platform growth and profitability" and pointed out that excessive reliance on trading revenue is emerging as a problem again. Meanwhile, although Coinbase achieved several business accomplishments such as quarterly user growth and expansion of institutional custody services, it revealed that its trading-centered business model continues to have a significant impact on performance.
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