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Coinbase Results Smash Estimates for Second Quarter

Revenue soars almost 12-fold to $2.22 billion in the second quarter. The FactSet analyst consensus called for $1.79 billion in the latest quarter.
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Coinbase  (COIN) - Get Free Report shares firmed in after-hours trading Tuesday, after the crypto asset exchange reported results for the second quarter that creamed estimates.

Revenue soared almost 12-fold to $2.22 billion in the quarter from $186 million last year. The FactSet analyst consensus called for $1.79 billion in the latest quarter.

Net income registered $1.6 billion, or $6.42 a share, up from $32 million a year ago. There’s no per-share figure for last year, because Coinbase only went public this April.

Analysts forecast profit of $2.66 a share for the latest quarter.

Coinbase on Tuesday traded at $270, up 0.12%. It has slumped 18% since April 14.

In its mid-level forecast for the year, Coinbase estimates average monthly transaction users of 7 million.

“This scenario assumes flat crypto market capitalization and low-to-moderate crypto asset price volatility,” the company said.

“This scenario assumes MTUs remain similar to August month-to-date levels for the remainder of 2021,” the company added.

Last month, Cathie Wood-led ARK Investment Management shed shares in chipmaker Nvidia  (NVDA) - Get Free Report and e-commerce back-end provider Shopify  (SHOP) - Get Free Report. Ark shifted some of its capital into Coinbase amid a dip in the crypto exchange provider’s stock price.

Ark sold 785 shares of Nvidia, estimated to be worth about $635,850, according to Business Insider. ARK also sold 16,034 shares in e-commerce company Shopify, estimated to be worth about $24.3 million.

The investment firm snapped up 27,844 shares, estimated to be worth about $6.77 million, in Coinbase on the dip, according to reports. Share-purchase information comes from a subscription to ARK's daily trading information.

That purchase came less than three weeks after ARK added 214,718 shares of Coinbase.