Coinbase Shares Tumble as Q3 Revenues Fall Well Short of Estimates

• Coinbase posted $1.1 billion in transaction revenue in the third quarter, down from about $1.9 billion in the second quarter, the company said.

• Q3 trading volume was $327 billion, down from $462 billion in Q2.

• Coinbase had 7.4 million monthly transacting users (MTUs) in Q3, down from 8.8 million in Q2, but up from 2.1 million in the year-ago quarter.

• As for its outlook, Coinbase said that “while we entered Q3 with softer crypto market conditions, driven by low volatility and declining crypto asset prices, market conditions improved meaningfully later in the quarter which we have continued to see into early Q4.”

• Q3 subscription and services revenue grew 41% quarter-over-quarter to $145 million, up from about $103 million in Q2.

• Shares of Coinbase were down more than 14% in after-hours trading on Tuesday following the release of the results.

This is a developing story and will be updated.