The US’s largest crypto exchange reported that transaction revenue fell 27% from the previous quarter.
Posted October 30, 2024 at 4:40 pm EST.
Coinbase shares were down almost 4% in after-hours trading after the crypto exchange reported third quarter earnings that fell just short of analyst estimates. For the quarter, Coinbase reported revenue had fallen 17% to $1.2 billion from $1.45 billion in the previous quarter, while analysts were expecting revenue of $1.26 billion. Net income, which included $121 million in unrealized losses on the company’s crypto holdings as prices fell in the quarter, came in at $75 million.
Transaction revenue, which remains Coinbase’s largest source of income, was $573 million, down 27% from the previous quarter. Subscription and services revenue declined 7% from the previous quarter to $556 million, which Coinbase attributed largely to lower average crypto asset prices in its quarterly shareholder letter.
Read more: Gary Gensler Reiterates in Speech That Coinbase, DeFi Should Be Defined as ‘Exchanges’
Looking ahead to the fourth quarter, Coinbase noted that it had generated $190 million in transaction revenue so far in October, and that it expected Q4 subscription and services revenue to come in at a range between $505 million to $580 million.
The crypto exchange, the US’s largest, said that it had made significant progress in the third quarter in integrating stablecoins across its product suite, as well as increasing usage of Base, its popular L2. And Coinbase further pointed to the upcoming political elections in the US as “the next major milestone in our ongoing work to drive regulatory clarity for crypto.” Coinbase is one of the major contributors to crypto PAC Fairshake, and also founded advocacy group Stand With Crypto.
“Looking beyond Election Day 2024, we are prepared to work with either administration and believe the odds of pro-crypto legislation are better than ever,” Coinbase wrote in its letter.
Coinbase shares are up about 24% year-to-date, but they are currently down about 27% from their peak of $279.71 in March.
Read more: Coinbase Activates Bitcoin Taproot Transfers
UPDATE (Oct. 30, 4:55 p.m. ET): Updated with information about Coinbase’s Q4 outlook.
Powered by WPeMatico
