{"id":22695,"date":"2023-08-04T00:02:11","date_gmt":"2023-08-04T00:02:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/coinbase-reports-a-13-sequential-decline-in-transaction-revenue\/"},"modified":"2023-08-04T00:02:11","modified_gmt":"2023-08-04T00:02:11","slug":"coinbase-reports-a-13-sequential-decline-in-transaction-revenue","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/coinbase-reports-a-13-sequential-decline-in-transaction-revenue\/","title":{"rendered":"Coinbase reports a 13% sequential decline in transaction revenue"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/128209080_m_normal_none-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/128209080_m_normal_none-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/128209080_m_normal_none-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/128209080_m_normal_none-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Coinbase reported its second-quarter financial results on Thursday.<\/li>\n<li>Berenberg analyst Mark Palmer sees downside in \u201cCOIN\u201d to $39.<\/li>\n<li>Coinbase stock has nearly tripled since the start of the year 2023.<\/li>\n<\/ul>\n<p>Shares of <a href=\"https:\/\/coinjournal.net\/exchanges\/coinbase\/\">Coinbase Global Inc<\/a> wobbled but eventually ended flat in extended hours today even though the crypto exchange reported market-beating results for its fiscal second quarter.<\/p>\n<h2>Why is Coinbase stock unimpressed in after-hours?<\/h2>\n<p>The stock is primarily responding to weakness in transaction revenue that printed at $327 million \u2013 down nearly 13% sequentially. Trading volume also tanked to $92 million versus $145 million in the prior quarter.<\/p>\n<p>Also a negative was interest income that declined about 17% on a quarter-over-quarter basis to $201 million. Reacting to the earnings print in an email, Mark Palmer \u2013 a Berenberg analyst wrote:<\/p>\n<blockquote>\n<p>Interest income and staking revenue appear to be at risk going forward given the ongoing declines in USDC\u2019s market cap and regulatory challenges to staking programs.<\/p>\n<\/blockquote>\n<p>USDC holdings brought in $151 million in interest income to Coinbase in Q2.<\/p>\n<h2>Notable figures in Coinbase Q2 earnings report<\/h2>\n<ul>\n<li>Lost $79 million versus the year-ago $430 million<\/li>\n<li>Per-share loss also narrowed from $1.98 to 34 cents<\/li>\n<li>Revenue tanked roughly 35% YoY to $773 million<\/li>\n<li>Consensus was 76 cents loss on $628 million in sales<\/li>\n<li>Subscription and services revenue printed at $335 million<\/li>\n<\/ul>\n<p>In June, Coinbase Global Inc was sued by the SEC that accused it of violating the U.S. securities laws (<a href=\"https:\/\/coinjournal.net\/news\/the-sec-strikes-again-first-binance-now-coinbase\/\">read more<\/a>).<\/p>\n<h2>Should you buy Coinbase stock?<\/h2>\n<p>Coinbase also revealed in a <a href=\"https:\/\/investor.coinbase.com\/news\/news-details\/2023\/Coinbase-Releases-Second-Quarter-2023-Shareholder-Letter\/default.aspx\" target=\"_blank\" rel=\"noopener\">letter to shareholders<\/a> today that transaction revenue stood at $110 million in July.<\/p>\n<p>The crypto exchange now forecasts at least $300 million in subscription and services revenue in its current financial quarter. According to Berenberg\u2019s Palmer:<\/p>\n<blockquote>\n<p>Guidance was muted, and adjusted EBITDA print included a huge adjustment for stock-based compensation \u2013 an area management had said it would look to reduce.<\/p>\n<\/blockquote>\n<p>Note that Palmer has a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-08-03\/coinbase-share-price-rally-leaves-berenberg-calling-stock-uninvestable-coin\" target=\"_blank\" rel=\"noopener\">$39 price target<\/a> on Coinbase stock that warns of a more than 50% downside from here. In his own words, shares of the crypto company are uninvestable at least in the near term.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/coinbase-q2-earnings-transaction-revenue-down\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Coinbase reported its second-quarter financial results on Thursday. Berenberg analyst Mark Palmer sees downside in \u201cCOIN\u201d to $39. Coinbase stock has nearly tripled since the start of the year 2023. Shares of Coinbase Global Inc wobbled but eventually ended flat in extended hours [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":22696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22695"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=22695"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22695\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/22696"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=22695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=22695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=22695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}