Coinbase Beats Q3 Earnings Estimates, But Trading Volume Fell

Coinbase (COIN) topped analyst estimates for the third quarter on earnings and revenue, while falling short in total trading volume expectations.

The crypto exchange reported a third-quarter adjusted loss of $0.01 per share, compared to FactSet estimates for a loss of $0.55 per share, marking it the third consecutive earnings beat for Coinbase. Total revenue for the quarter was $674.1 million, beating analyst estimates of $650.9 million.

Total trading volume in Q3, however, was just $76 billion versus the estimates of $80.1 billion and down from $92 billion in the previous quarter. Third-quarter transaction revenue was $288.6 million, falling 12% from $327 million in the previous quarter.

In its shareholder letter, Coinbase noted declining overall crypto markets and volatility as behind the fall in transaction revenue.

Looking at the fourth quarter, the company said it generated about $105 million of transaction revenue in October. The crypto exchange further said it expects to “generate meaningful” positive adjusted EBITDA for 2023, a slight revision from the previous goal of “improving” full-year 2023 adjusted EBITDA.

Shares of Coinbase are down 5.5% in post-market action after rising 8.7% during the regular session. COIN is up about 131% this year, while the price of bitcoin (BTC) has risen about 110% over the same time period.

Coinbase will host its earnings call at 5:30 pm ET.