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Cryptocurrency company Coinbase (NASDAQ:COIN) beat analysts' expectations in Q2 CY2024, with revenue up 105% year on year to $1.45 billion. It made a GAAP profit of $0.14 per share, improving from its loss of $0.41 per share in the same quarter last year.
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Coinbase (COIN) Q2 CY2024 Highlights:
- Revenue: $1.45 billion vs analyst estimates of $1.36 billion (6.2% beat)
- Adjusted EBITDA: $595.6 million vs analyst estimates of $583.6 million (2.1% beat)
- Gross Margin (GAAP): 86.8%, up from 84.7% in the same quarter last year
- Monthly Transacting Users: 226 billion, up 226 billion year on year
- Market Capitalization: $55.1 billion
Online MarketplaceMarketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
Sales GrowthCoinbase's revenue growth over the last three years has been exceptional, averaging 54.2% annually. This quarter, Coinbase beat analysts' estimates and reported exceptional 105% year-on-year revenue growth.
Ahead of the earnings results, analysts were projecting sales to grow 35.6% over the next 12 months.
Key Takeaways from Coinbase's Q2 Results We were impressed by Coinbase's exceptional revenue and EBITDA growth this quarter, which easily topped analysts' estimates. The company beat on both the top- and bottom-line (EPS isn't as important for a young, high-growth company like Coinbase) despite seeing lower trading volumes than anticipated, meaning its take rate drove the outperformance. Although Coinbase's trading volumes missed, we note they were still higher than the broader crypto market, which tells us it won market share. Zooming out, we think this was a fantastic quarter that should have shareholders cheering. The stock traded up 1.5% to $216 immediately following the results.
