Coinbase Misses Q2 Revenue and Profit Targets Amid Weak Trading

Coinbase reported disappointing Q2 results, missing analyst expectations on revenue and profit. The company posted $1.2 billion in revenue, below the projected $1.3 billion, and a loss of $1.36 per share, worse than the 17-cent loss forecast.

The third consecutive quarter of missing sales and profit forecasts saw Coinbase's stock drop by over 7% after hours. Revenue fell from $1.5 billion to $1.2 billion year-over-year, with earnings plummeting from $5.14 per share to a $1.36 loss.

Coinbase CEO Brian Armstrong attributed the poor performance to weak trading, which comprised only 12% of sales compared to over half in previous periods. However, he emphasized that the company is diversifying its revenue streams and reducing its dependence on trading commissions.

Subscription and services accounted for $555 million of revenue, a significant portion of the total. Coinbase's focus on building subscription products reflects its strategy to expand beyond trading fees.