Coinbase Global, Inc. Q2 FY2025 earnings call

• Brian highlighted the mission to increase economic freedom, focusing on building the 'everything exchange' with over 300 assets listed and plans to integrate decentralized exchanges. Also, acquisition of Deribit and work on tokenized equities. • Alesia discussed market backdrop with lower volatility and non-Bitcoin asset declines, financial results including net income of $1.4 billion and adjusted EBITDA of $512 million, and Q3 outlook with subscription and services revenue range and expense expectations.

Total revenue came in at $1.5 billion with positive adjusted EBITDA of $512 million. The trading segment saw over 300 total assets listed on the exchange in Q2, and a comprehensive derivatives product suite launched. Subscription and services revenues were $656 million, with growth in native units like USDC, staking, and custody, but offset by asset price and protocol reward rate headwinds.

• Q3 subscription and services revenue expected to be between $665 million and $745 million, up ~8% at midpoint. • Expenses for technology/development and G&A expected between $800 million and $850 million. • Higher head count growth in Q3 directed into product areas mentioned.

• Data theft incident in May resulting in a $307 million expense. • Market volatility and shifting macro conditions impacting risk assets. • Regulatory changes that could affect business operations.

Q: Interest-bearing dynamics in stablecoins?

A: Rewards programs for user engagement, stablecoins seen as having network effect, users preferring utility over asset type.

Q: Economics of adding decentralized exchanges?

A: Monetized through trading fees, sequencer fees, and brokerage layer, with no cannibalization expected.

Q: Traction of CFTC-regulated crypto perpetuals?

A: Early traction with volumes doubling week over week, focused on driving liquidity and market share initially.

Q: Customer service strategy post-data breach?

A: Automating customer service, expanding onshore facilities, and hardening systems to improve user satisfaction.