CO

Coinbase Global, Inc. stock research

Jun 30, 2024

FY2024 Q2

Coinbase Global (COIN) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased. Gross margin weakened from the prior quarter and also declined relative to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased. Gross margin weakened from the prior quarter and also declined relative to the same quarter one year earlier.

  • The gross margin decline was driven by a larger proportional increase in cost of revenue relative to the decrease in revenue. The cost of revenue rose while revenue fell, compressing the margin.
  • Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

82.3%

Gross profit

$1.2B

Revenue

$1.4B

Cost of revenue

$256.9M

Quarter-over-quarter change

-9.6 pts

Year-over-year change

-3.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$674.1M$586.1M$88.1M86.9%
Dec 31, 2023$953.8M$867.5M$86.3M90.9%
Mar 31, 2024$1.6B$1.5B$133.4M91.9%
Jun 30, 2024$1.4B$1.2B$256.9M82.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

-9.6 pts

Year-over-year change

Jun 30, 2023

-3.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin decline was driven by a larger proportional increase in cost of revenue relative to the decrease in revenue. The cost of revenue rose while revenue fell, compressing the margin.

Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was lower.

Monitor the trend in cost of revenue, as it increased sequentially while revenue declined, directly pressuring gross margin.