Coinbase(US:COIN)2024-08-02 05:01Investment Rating - The report does not explicitly state the investment rating for Coinbase, but it provides detailed financial performance metrics that can be used to infer the company's current standing in the market [2][3]. Core Insights - Coinbase reported operating revenue of $1.397 billion for Q2 2024, representing a 105% year-over-year increase but a 12% decrease quarter-over-quarter [2][3]. - The pre-tax loss was $60 million, a 23.4% decrease year-over-year, indicating a shift from profit to loss on a quarter-over-quarter basis [2][3]. - Trading revenue increased by 139% year-over-year but decreased by 27% quarter-over-quarter, while subscription and service revenue grew by 79% year-over-year and 17% quarter-over-quarter [2][3]. - The trading volume for Q2 2024 was $226 billion, down 28% from the previous quarter, with retail trading volume decreasing by 34% to $37 million and institutional trading volume down 26% to $189 million [2][3]. - The adjusted EBITDA was $596 million, up 215% year-over-year, significantly influenced by tax benefits related to stock compensation and fair value changes [2][3]. Financial Performance Summary - Operating expenses were $1.107 billion, up 42% year-over-year and 26% quarter-over-quarter, accounting for 83% of total revenue [2][3]. - The operating profit was $343 million, turning profitable year-over-year but down 55% quarter-over-quarter [2][3]. - The final net profit recorded was $36 million, aided by tax benefits related to stock compensation amounting to $96 million [2][3]. - The number of employees increased to 3,486, up by 70 from the previous quarter [4]. Trading Metrics - The overall trading fee rate remained stable at 35 basis points, with retail trading fees increasing by 13 basis points to 1.8% and institutional fees remaining stable at 3 basis points [2][3]. - The proportion of non-trading revenue increased to 41%, driven by stablecoin income and blockchain earnings [2][3]. - Bitcoin and Ethereum's trading volume shares increased by 2 percentage points to 35% and 15%, respectively, while their shares in trading revenue rose by 1 percentage point and 2 percentage points to 31% and 17% [2][3].