Cryptocurrency Exchange Coinbase reported Thursday that it slashed its third-quarter losses by 50%, from $1.1 billion in the second quarter to $590 million.
Company Reports Below-Expected Revenue
Coinbase generated $590 million in revenue in the third quarter. The expectation was that revenues would be $649 million.
As the prices of cryptocurrencies fell, revenues fell more than 50% from the previous year.
However, the company noted in its shareholder letter that its transaction revenue continues to be significantly affected by the macroeconomic and crypto market downsides, as well as the volume of overseas trade.
The company’s transaction revenues were $366 million, down 44% compared to Q2 due to lower trading volume. Meanwhile, subscription and services revenue increased 43% to $211 million, driven by higher interest income.
Total revenue of $590 million fell short of FactSet’s estimate of $649 million, down from $803 million in Q2.
According to the statement, October trading volume was $47 billion, and monthly user numbers until October were roughly the same level as the third quarter results.
Coinbase shares fell 0.5% to $55.55 in after-hours trading on Thursday. Coinbase shares have lost more than 75% this year, compared to Bitcoin’s decline of around 56%.
Shares of the company have slumped this year as the collapse in the crypto and equity market led to a slowdown in retail trade. In response, the company laid off nearly 1,100 jobs in June and focused on controlling costs.
Coinbase is scheduled to hold a revenue meeting with analysts.
*Not investment advice.
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