Coinbase Q2 revenue misses forecast as shares drop 5% after-hours
Coinbase just posted its second-quarter results, and things weren't as strong as expected.
Revenue came in at $1.22 billion, missing the $1.29 billion forecast.
The main reason? Cryptocurrency prices have dropped lately, which led to fewer trades, and that hit Coinbase's earnings hard enough for shares to fall 5% after hours.
Coinbase trading volumes fell over 20%
Transaction revenue slipped to $599 million (below the $628 million estimate), and subscription and services revenue also missed targets at $555 million.
This isn't just a Coinbase thing: bitcoin and ether fell roughly 14% and about 25% during the second quarter, so the whole crypto market is feeling it.
CFO Alesia Haas noted trading volumes dropped over 20%.
CEO Brian Armstrong says they're focusing more on stablecoins, prediction markets, and their Base network to help steady things going forward.