CO

Coinbase Global, Inc. stock research

Sep 30, 2024

FY2024 Q3

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

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

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

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

  • The gross margin strengthened from the prior quarter, driven by a proportionally larger decline in cost of revenue relative to the decrease in revenue. This improvement occurred even as revenue fell.
  • Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was essentially stable.

Gross margin snapshot

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

Gross margin

87.0%

Gross profit

$1.0B

Revenue

$1.2B

Cost of revenue

$157.1M

Quarter-over-quarter change

+4.7 pts

Year-over-year change

+0.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Sep 30, 2024$1.2B$1.0B$157.1M87.0%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+4.7 pts

Year-over-year change

Sep 30, 2023

+0.0 pts

What the margin says

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

The gross margin strengthened from the prior quarter, driven by a proportionally larger decline in cost of revenue relative to the decrease in revenue. This improvement occurred even as revenue fell.

Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was essentially stable.

Monitor the trajectory of cost of revenue relative to revenue, as its decline was the primary factor behind the gross margin improvement.