The post What to expect when Coinbase reports Q2 results appeared on BitcoinEthereumNews.com.

Analysts expect Coinbase to report lower revenues during its second quarter earnings call Thursday amid a trading volume slowdown. But the exchange could offset that decrease via other business lines, and remains undervalued, some analysts say.  Oppenheimer analysts Owen Lau and Guru Sidaarth expect Q2 revenue to drop to $1.36 billion, a possible decrease from $1.6 billion worth of revenue during the year’s first three months.  Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) could go down to $555 million, they added in the July 21 research note — a sizable fall from the $1 billion last quarter.  Read more: Coinbase cross-selling on display during impressive Q1 Decreased trading revenue drove the lower estimates as volumes were hurt (down an estimated 31% quarter-over-quarter) by relatively stable bitcoin prices.  “It appears that the halving effect was priced in before the actual event and countered by outflows in spot bitcoin ETFs,” Lau and Sidaarth wrote. “Some of the volume was pulled forward to March, which had an exceptional month.” Subscription and services revenue — comprising various business lines outside of trading — should see a lift, though. The analysts, who expect a 10% quarter-over-quarter increase in that area, note higher stablecoin and blockchain revenue. The average market cap of USDC “showed signs of sustained recovery,” they note. In addition to USDC’s recovery, Morningstar equity analyst Michael Miller said higher crypto asset valuations are set to help offset the lower volumes. “All in all, I have pretty high expectations for Coinbase as market conditions remain favorable,” he told Blockworks.  International business, Base Aside from the numbers, Miller said he will be listening for executive commentary about the growth of Coinbase’s international business.  Launched in May 2023, the Coinbase International Exchange reached $76 billion in notional volume traded during the first quarter. There…

---

Filed under: News - @ July 31, 2024 6:34 pm