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Coinbase sees trading volume continue to fall, but revenue beats expectations

Coinbase Global Inc. saw revenue rise by more than what was expected in its latest quarter, but trading volumes continued to decline.

The company logged a third-quarter net loss of $2 million, or 1 cent a share, compared with a loss of $545 million, or $2.43 a share, in the year-prior quarter. Analysts tracked by FactSet were modeling a 55-cent loss per share.

Coinbase
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posted $181 million in adjusted earnings before interest, taxes, depreciation and amortization, whereas it notched a $116 million loss on the metric a year prior. The FactSet consensus was for $119 million in adjusted Ebitda.

Revenue rose to $674 million from $590 million, whereas analysts had been modeling $651 million. The company saw $275 million in consumer transaction revenue, down 11% sequentially, and $14 million in institutional transaction revenue, down 18%. Coinbase also logged $334 million in subscription and services revenue, about flat sequentially.

Subscription and services revenue includes areas like custody and blockchain rewards.

Shares fell about 5% in aftermarket trading.

Read: What the correlation between bitcoin and tech stocks says about the outlook for crypto prices

Coinbase observed $76 billion in total trading volume, down from $92 billion in the June period.

Consumer trading volumes fell to $11 billion from $14 billion in the June quarter, while institutional volumes dropped to $65 billion from $76 billion.

Bitcoin trading volume represented 38% of overall volume, compared with 40% in the June quarter.

Coinbase noted that it saw about $105 million in total transaction revenue during the month of October, “though we urge caution in extrapolating these results,” the company said.

Management expects fourth-quarter subscription and services revenue to be about flat on a sequential basis, assuming no major changes in the crypto and fiat assets that customers store on its platform. Analysts were modeling $335 million in subscription and services revenue for the current quarter, whereas Coinbase saw $334 million in the third quarter.

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