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Investing.com – Coinbase reported second-quarter results that topped Wall Street expectations on both the top and bottom lines on Tuesday as wild swings in cryptocurrencies boosted trading volume and racked up fees for the cryptocurrency exchange.
Coinbase Global Inc (NASDAQ:COIN) shares climbed 1% in afterhours trading.
Coinbase reported EPS of $6.42 on revenue of $2.23 billion, topping expectations for EPS of $2.31 on revenue of $1.78 billion.
Retail monthly transacting users, or MTUs, increased 44% to 8.8 million.
“Q2 MTU growth was driven by the crypto market environment, product launches, our marketing efforts, and the growing number of crypto assets we support,” the company said.
Total transaction revenue grew to $1.93 billion from $171.9 million last year, with retail accounting for $1.83 billion, and institutional just $102.4 million.
But it isn’t just retail investors who are jumping on the crypto bandwagon, with institutional investors also showing a keen interest.
“Overall, we are seeing that retail users are deepening their engagement with our platform…,” the company said. “On the institutional side, we now have over 9,000 financial institutions using Coinbase. Several important themes have developed with our institutional business.”
Coinbase made its public market debut in April through a direct listing at $381 per share. The company’s current business model, however, has come under security on concerns that increased competition will eventually drive the company’s high trading fees, which make up the bulk of revenue, lower.
But Coinbase CEO Brian Armstrong has suggested the company is investing in other business streams to diversity its revenue.
