Coinbase Global Inc. saw revenue surge in a volatile quarter that it said highlighted the “still-early days” of the “cryptoeconomy.”

The company posted net revenue of $2.0 billion in the second quarter, up from $178 million a year earlier and $1.6 billion in the first quarter. Coinbase
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-3.85%

had $1.9 billion in transaction revenue.

Analysts tracked by FactSet were expecting $1.8 billion in revenue.

Shares were up 1.6% in after-hours trading following the report, Coinbase’s first since its April direct listing.

Coinbase saw total retail trading volume of $145 billion in the June quarter, up 21% from the March quarter, which the company attributed to a higher count of monthly transacting users, strength in the crypto market and its support of more trading assets.

The company has 8.8 million monthly transacting users, up from 6.1 million in the March quarter.

Overall trading volume hit $462 million, up from $335 million in the March quarter. Of that total trading volume, 24% was concentrated in bitcoin
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down from 39% in the first quarter, which Coinbase said reflected in part the “meaningful growth in Ethereum
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-0.13%

trading volumes” that surpassed bitcoin trading volumes on the platform for the first time, “driven by growth in the DeFi [decentralized finance] and NFT [non-fungible-token] ecosystems.”

The company reported net income of $1.6 billion, or $6.42 a share. It posted net income of $32 million a year earlier and didn’t list a per-share earnings figure for the year-ago period on its financial statements in its shareholder letter. Coinbase noted a tax benefit of $737 million for the most recent quarter that was mainly the result of tax deductions related to stock-based compensation provided to employees around the company’s direct listing.

“We intend to prioritize reinvestment into the business to continue to grow the
crypto economy through both crypto bull and bear markets alike, and through both
organic and inorganic means,” Coinbase said in its shareholder letter. “Accordingly, we do not intend to issue a dividend or similar return of capital to shareholders at any point in the near future.”

The company disclosed retail monthly transacting users of 6.3 million and total trading volume of $57.0 billion for the month of July, “as crypto asset prices and crypto asset volatility declined significantly relative to Q2 levels.” So far in August, Coinbase’s retail monthly transacting users and trading volumes “have slightly improved compared to July levels but remain lower than earlier in the year,” leading the company to believe that the metrics will be lower in the third quarter than they were in the second.

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