Shares in Coinbase Global Inc. dropped in late trading after the cryptocurrency exchange once again missed estimates in its latest earnings report.

For the quarter ending June 30, Coinbase reported a loss of $4.98 per share compared to EPS of $3.45 in the same quarter last year. Revenue came in at $808.3 million, down 64% from $2.23 billion in Q2 2021.

Analysts had been expecting a loss of $2.65 per share on revenue of $832.2 million.

Amid an ongoing crypto winter, Coinbase’s figures were mostly down across the board. Retail transaction revenue came in at $616.2 million, down 66% year-over-year. The company’s net loss of $1.1 billion contrasts with $1.59 billion in net income this time last year, however, it is noted that the figure included a $377 million non-cash cryptocurrency-related impairment charge.

Coinbase recorded nine million transacting users in the quarter, down from 9.1 million in the previous quarter but up from 8.8 million in the same quarter of 2021. Total trading volume in the quarter was $217 billion, down from $309 billion in the first quarter and $462 billion for the same time last year. Assets held on Coinbase’s platform were $96 billion as of the end of the quarter, down from $256 billion in the first quarter.

“Despite crypto market capitalization declining $1.3 trillion or ~60% in Q2, primarily driven by macroeconomic conditions and shocks to the crypto credit environment, we remain as bullish as ever on the future of this technology,” the company said in a letter to shareholders. “Coinbase is an all-weather company with experience in navigating through crypto asset price cycles. We continue to take a long-term view and remain focused on building for the future.”

Looking ahead, Coinbase warned that soft cryptocurrency market conditions from the second quarter continue into the third quarter and are reflected in its outlook.

Coinbase said that monthly transacting users have declined to eight million in July and expects MTUs to be lower in the third quarter compared to the second quarter and for a higher portion of MTUs to be non-investing users compared to investing users. The company said July saw a trading volume of $51 billion and if trends continue, the third quarter figures will also be lower than the second quarter.

For the full year 2022, Coinbase predicts annual average MTUs of seven million to nine million and average transaction revenue per user of low $20s.

Shares in Coinbase, which were already down 10.55% in regular trading, dropped a further 4.64% after the bell to be sitting at $83.61 as of 6:53 p.m. EDT.

Photo: Coinbase

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