Coinbase Global, Inc. stock research
FY2023 Q2
Coinbase Global (COIN) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was slightly lower but gross profit was substantially higher and cost of revenue was much lower, leading to a significantly improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was slightly lower but gross profit was substantially higher and cost of revenue was much lower, leading to a significantly improved gross margin.
- The strongest observable margin driver is the change in cost of revenue, which was lower year over year and higher sequentially, directly affecting gross margin direction.
- Compared to the prior quarter, gross margin weakened as revenue and gross profit declined while cost of revenue rose. Compared to the same quarter one year ago, gross margin improved substantially, driven by a much lower cost of revenue relative to gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.2%
Gross profit
$610.4M
Revenue
$707.9M
Cost of revenue
$97.5M
Quarter-over-quarter change
-6.7 pts
Year-over-year change
+55.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $772.5M | $717.8M | $54.7M | 92.9% |
| Jun 30, 2023 | $707.9M | $610.4M | $97.5M | 86.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-6.7 pts
Year-over-year change
Jun 30, 2022
+55.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue, which was lower year over year and higher sequentially, directly affecting gross margin direction.
Compared to the prior quarter, gross margin weakened as revenue and gross profit declined while cost of revenue rose. Compared to the same quarter one year ago, gross margin improved substantially, driven by a much lower cost of revenue relative to gross profit.
Monitor the trend in cost of revenue, as its sequential increase contributed to the gross margin decline this quarter.