Coinbase reported $1.4 billion in total revenue for the second quarter of this year.
Ahead of today’s earnings release, Oppenheimer analysts Owen Lau and Guru Sidaarth said that they expected the exchange to report second-quarter revenue of $1.36 billion, down from the $1.6 billion that the company reported in the first three months of the year.
Transaction revenue came in at $781 million, down 27% quarter-over-quarter, while the company reported $600 million in subscriptions and services revenue.
Coinbase also said that the number of transactions on Base grew 300% quarter-over-quarter.
“We also saw extraordinary strides in achieving regulatory clarity, which serves as a vital unlock for Coinbase and the broader cryptoeconomy. Advancing crypto legislation is now a mainstream issue. Stand With Crypto has amassed over 1.3 million crypto advocates, many in swing states, politicians on both sides of the aisle have taken notice, and there is real energy in both the House and Senate around passing legislation,” the company said in a shareholder letter.
Read more: What to expect when Coinbase reports Q2 results
Looking ahead, Coinbase says it expects third-quarter subscription and services revenue to come in around $530 to $600 million.
“We expect Q3 transaction expenses will be in the mid-teens as a percentage of net revenue. We expect technology & development and general & administrative expenses to increase Q/Q to $700-$750 million, largely driven by the non-linear expense recognition of our stock-based compensation,” it said.
“It appears that the halving effect was priced in before the actual event and countered by outflows in spot bitcoin ETFs,” the two Oppenheimer analysts wrote ahead of the earnings report.
Read more: Robinhood’s crypto exposure could be its savior — if markets rip
“With increasing regulatory clarity, adoption and potential S&P 500 inclusion, we believe Coinbase’s long-term thesis is highly underappreciated, given the massive attention on current volume and regulations. Selling from Mt. Gox and Germany (and other authorities) only represents a small portion of daily volume; we believe this actually creates an attractive entry point for COIN,” they continued.
Oppenheimer has Coinbase at an outperform, with a price target of $280.
The stock, at the time of publication, is up 133% in the past year.
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