Coinbase Beats 3Q Earnings, Sales but Trading Revenue Fell

Coinbase (COIN) beat analysts’ estimates for the third quarter 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 a net loss of $0.55 per share estimate, according to FactSet, marking it the third consecutive earnings beat for Coinbase.

However, Coinbase’s total trading volume took a hit to 76 billion in the quarter versus the estimate of 80.1 billion and 92 billion in the previous quarter.

The total revenue for the quarter was $674.1 million, beating analyst estimate of $650.9 million. The third quarter transaction revenue was $288.6 million, falling 12% from $327 million in the previous quarter. Coinbase said in its shareholder letter that transaction revenue fell due to decline in overall crypto market-cap and volatility.

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

Shares of Coinbase fell slightly after the results were announced. Shares of Coinbase are up about 131% this year, while the price of bitcoin (BTC) has risen more than 110% over the same time period.

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