Coinbase cuts losses, crypto trading volumes fall in Q3
Cryptocurrency exchange Coinbase reported a year-over-year increase in revenue despite lower trading volume in the third quarter, narrowing its net loss to $2 million.
According to a Nov. 2 earnings release, the company's net loss was cut from a $545-million net loss in Q3 last year.
While quarterly revenue fell 4.8 percent, total revenue rose 14.2 percent year-over-year to $674.1 million. The figure beat the London Stock Exchange Group's estimate of $653.2 million, according to a Reuters report.
Of the total revenue, $334.4 million came from subscriptions and services (mostly stablecoins and blockchain rewards), while $288.6 million came from transaction-based revenue.
Our Q3'23 update is in.
Read the full shareholder letter and our earnings call here → pic.twitter.com/Iusjw1Uysx
— Coinbase ️ (@coinbase) November 2, 2023
Meanwhile, consumer trade volume reached $11 billion, down from $26 billion in Q3 2022.
Institutional trading volume reached $65 billion, down from $78 million in Q2 and $133 million in Q3 2022.
These volumes have been trending down for five consecutive quarters.
Despite this, Coinbase said it was happy with how the quarter played out in its statement:
“Q3 was a strong quarter for Coinbase. Amid several years of low volatility levels, we are pleased with our financial results.
The exchange reported positive adjusted EBITDA for the third consecutive quarter – a sign it is building to a “sustainable business” that it says can deliver “long-term growth”.
Adjusted EBITDA stands for “before interest, taxes, depreciation and amortization,” and is a way for analysts to make more meaningful comparisons with different companies in the same industry.
Related: Coinbase Launches Regulated Crypto Futures Services for US Retailers
Coinbase's share price (COIN) rose 8.7% to $84.6 in after-hours trading, but fell 3.7% to $81.5 in afternoon trading, according to Google Finance.
Magazine: Slumdog Billionaire: The Incredible Rags-to-Rich Story of Polygon Sandeep Nelwal
