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Coinbase’s Q2 Earnings: What To Expect

Coinbase made a splash with its market debut back in April but as its share price settles down, here’s what to expect from its earnings.  

Coinbase (NASDAQ: COIN) releases its financial report for the second quarter this week and investors are eagerly awaiting to see how the recently-listed company has performed. The cryptocurrency exchange platform made its market debut back in April and since then, it’s fair to say the stock has disappointed shareholders with shares down 24% in that time frame. This is only the second time Coinbase has shown its books so it’s very early days for the company in terms of what Wall Street can expect. 

This downward trend might be reversed if the company produces a strong report on Tuesday. Regardless of the figures, Coinbase’s results will give investors a good indication of how the crypto market is doing, with Bitcoin in particular being very volatile recently. 

So, here is what to expect in Coinbase’s Q2 earnings. 

When is Coinbase’s earnings date?

Coinbase will report its Q2 earnings report on Tuesday, 10 August at 5:00 PM Eastern Time.

How can I listen to Coinbase’s earnings call? 

To listen to the earnings call and to access the transcript afterward you can go to the Coinbase Investor Relations page on its website, you will find the event in its Latest Events section. You can also read all previous quarterly results in its Quarterly Reports section.

What to expect from Coinbase’s earnings 

In Q1, Coinbase posted earnings per share (EPS) of $3.05 whilst revenue came in at $1.8 billion, up from $585 million in Q4 of 2020. This revenue came in just shy of Wall Street’s estimates of $1.81 billion which makes it even more important for Coinbase to beat expectations of $1.77 billion for Q2. 

Despite the slight miss in the last quarter, Coinbase still doubled its revenue so investors will be hoping the firm can continue the impressive growth as this means the company is on the right track in growing the business. 

A key performance indicator for Coinbase is user growth. In the last quarter, Coinbase ended the period with over 56 million verified users. On the call, the company also said it was planning to invest significantly in marketing to drive its product and capture new audiences. Shareholders will therefore be looking for a healthy increase in new members to ensure its services are still popular given the crypto crash. 

Coinbase is a pretty volatile stock so anything can happen after it reports on Tuesday. We recommend investors focus on what the firm has to say about growing competition in the crypto space and the overall outlook for the digital currency market. Revolut in the UK is really growing in popularity with crypto trading alongside industry leader Binance. In positive news, Bitcoin has started to make a slow comeback which should help improve the firm’s forecast for the full year. 

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here

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