Coinbase Global (Nasdaq: COIN) has managed to beat the market estimates with its third-quarter revenue of $674.1 million and an adjusted loss of $0.01 per share. However, shares of the crypto exchange plummeted nearly 5 percent due to the missed total trading volume expectations.
According to the official figures published yesterday (Thursday), the total trading volume between July and September came in at $76 billion, compared to the estimates of $80.1 billion. The figure also slipped from $92 billion in the previous quarter.
The transaction revenue from the third quarter came in at $288.6 million, a 12 percent decline quarter-over-quarter. Coinbase justified that the fall in transaction revenue was due to the declining overall crypto markets and volatility.
The crypto exchange, which went public in April 2021, reported a loss in the seventh consecutive quarter. However, it narrowed down the net loss significantly to $2 million, compared to $97 million in the previous quarter. The adjusted EBITDA came in at a positive $181 million, down from the previous quarter’s $194 million.
“We anticipate that we will generate meaningful positive Adjusted EBITDA in full-year 2023, revised from our prior goal of improving full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022,” a letter to the Coinbase shareholders stated.
The California-headquartered exchange managed to lower its operating expenses by 4 percent to $754 million. Costs around technology & development, sales & marketing, and general & administrative expenses collectively went down 1 percent to $654 million.
Meanwhile, with the latest crypto rally, Coinbase has already generated about $105 million of transaction revenue in October.
Our Q3’23 update is in.
— Coinbase 🛡️📞 (@coinbase) November 2, 2023
Markets React Strongly
Being a publicly listed company, any performance of Coinbase and the optimism of its inventors are directly reflected in its share price. Nasdaq-listed COIN gained about 9 percent at the close of trading hours on Thursday. However, as the numbers came out post-market, the crypto exchange shares went down by about 5 percent in after-hours trading.
Coinbase is also in the middle of a legal battle with the US Securities and Exchange Commission (SEC), which is accusing the exchange…