Coinbase Global (Nasdaq: COIN) has managed to beat the market estimates with its third-quarter revenue of $674.1 million and an adjusted loss of $0.01 per share. However, shares of the crypto exchange plummeted nearly 5 percent due to the missed total trading volume expectations.
According to the official figures published yesterday (Thursday), the total trading volume between July and September came in at $76 billion, compared to the estimates of $80.1 billion. The figure also slipped from $92 billion in the previous quarter.
The transaction revenue from the third quarter came in at $288.6 million, a 12 percent decline quarter-over-quarter. Coinbase justified that the fall in transaction revenue was due to the declining overall crypto markets and volatility.
The crypto exchange, which went public in April 2021, reported a loss in the seventh consecutive quarter. However, it narrowed down the net loss significantly to $2 million, compared to $97 million in the previous quarter. The adjusted EBITDA came in at a positive $181 million, down from the previous quarter’s $194 million.
“We anticipate that we will generate meaningful positive Adjusted EBITDA in full-year 2023, revised from our prior goal of improving full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022,” a letter to the Coinbase shareholders stated.
The California-headquartered exchange managed to lower its operating expenses by 4 percent to $754 million. Costs around technology & development, sales & marketing, and general & administrative expenses collectively went down 1 percent to $654 million.
Meanwhile, with the latest crypto rally, Coinbase has already generated about $105 million of transaction revenue in October.
Our Q3’23 update is in.
Read the full shareholder letter and tune in to our earnings call here → https://t.co/fod43YZcAY pic.twitter.com/Iusjw1Uysx
— Coinbase 🛡️📞 (@coinbase) November 2, 2023
Markets React Strongly
Being a publicly listed company, any performance of Coinbase and the optimism of its inventors are directly reflected in its share price. Nasdaq-listed COIN gained about 9 percent at the close of trading hours on Thursday. However, as the numbers came out post-market, the crypto exchange shares went down by about 5 percent in after-hours trading.
Movement of Coinbase shares since Thursday
Coinbase is also in the middle of a legal battle with the US Securities and Exchange Commission (SEC), which is accusing the exchange of running an illegal trading platform and listing unregistered securities.
With the regulatory hostilities in its home country, the American exchange is strengthening its international presence. It has identified Ireland as its primary global regulatory hub and applied for a license from the Central Bank of Ireland. It has also received licenses in jurisdictions like Singapore and Bermuda.
Coinbase Global (Nasdaq: COIN) has managed to beat the market estimates with its third-quarter revenue of $674.1 million and an adjusted loss of $0.01 per share. However, shares of the crypto exchange plummeted nearly 5 percent due to the missed total trading volume expectations.
According to the official figures published yesterday (Thursday), the total trading volume between July and September came in at $76 billion, compared to the estimates of $80.1 billion. The figure also slipped from $92 billion in the previous quarter.
The transaction revenue from the third quarter came in at $288.6 million, a 12 percent decline quarter-over-quarter. Coinbase justified that the fall in transaction revenue was due to the declining overall crypto markets and volatility.
The crypto exchange, which went public in April 2021, reported a loss in the seventh consecutive quarter. However, it narrowed down the net loss significantly to $2 million, compared to $97 million in the previous quarter. The adjusted EBITDA came in at a positive $181 million, down from the previous quarter’s $194 million.
“We anticipate that we will generate meaningful positive Adjusted EBITDA in full-year 2023, revised from our prior goal of improving full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022,” a letter to the Coinbase shareholders stated.
The California-headquartered exchange managed to lower its operating expenses by 4 percent to $754 million. Costs around technology & development, sales & marketing, and general & administrative expenses collectively went down 1 percent to $654 million.
Meanwhile, with the latest crypto rally, Coinbase has already generated about $105 million of transaction revenue in October.
Our Q3’23 update is in.
Read the full shareholder letter and tune in to our earnings call here → https://t.co/fod43YZcAY pic.twitter.com/Iusjw1Uysx
— Coinbase 🛡️📞 (@coinbase) November 2, 2023
Markets React Strongly
Being a publicly listed company, any performance of Coinbase and the optimism of its inventors are directly reflected in its share price. Nasdaq-listed COIN gained about 9 percent at the close of trading hours on Thursday. However, as the numbers came out post-market, the crypto exchange shares went down by about 5 percent in after-hours trading.
Movement of Coinbase shares since Thursday
Coinbase is also in the middle of a legal battle with the US Securities and Exchange Commission (SEC), which is accusing the exchange of running an illegal trading platform and listing unregistered securities.
With the regulatory hostilities in its home country, the American exchange is strengthening its international presence. It has identified Ireland as its primary global regulatory hub and applied for a license from the Central Bank of Ireland. It has also received licenses in jurisdictions like Singapore and Bermuda.
