US-based cryptocurrency exchange Coinbae shared its second quarter reports for 2023.
The exchange beat analyst forecasts on a profit basis, while USDC slid in interest income. However, there was activity in Coinbase stocks.
Coinbase surpasses analyst estimates
Coinbase reported revenue of $708 million in the second quarter of 2023, beating analyst estimates. While this is lower than $808 million in revenue for the same period last year, higher-than-expected revenue was announced. However, transaction volumes fell to $92 billion, down from the same period last year.
Coinbase generated $151 million in USDC stablecoin interest income during the quarter. That’s down from $199 million in revenue in the previous quarter, with the company citing the 28 percent drop in USDC market cap as a contributing factor.
Transaction fees have also fallen due to declining trading volumes. Transaction fee revenue was $327 million this quarter, up from $655 million in the same quarter last year. However, the company points out that annual recurring operating expenses have fallen by close to 50 percent, driven by factors such as staff reductions and cost savings.
Coinbase continues to grow successfully by adding new revenue streams and diversifying its subscription and service fees. It has also contributed to the emergence of spot bitcoin ETFs through deals with asset managers.
The company also continues to move forward on crypto regulations and stated that they are seeking a way for bipartisan legislation to protect consumer protections and a fair market structure while protecting crypto innovation in the US.
Coinbase shares are up 1.6 percent to $92.23 in aftermarket trading, and are up almost 150 percent so far this year. The company emphasizes that it had a strong implementation quarter and continues to move forward.
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