Coinbase's Q3 revenue is $1.21 billion, up 79% year-on-year, and it plans to repurchase up to $1 billion in shares

Odaily Planet Daily Report: The cryptocurrency exchange (COIN.US) announced its third-quarter results on Wednesday, which were lower than expected. Although the company said trading activity may be more active in the fourth quarter, the drop in Ethereum prices in October may offset the growth in subscription and service business in the current quarter. As of the time of writing, Coinbase fell more than 4% after the US stock market close on Wednesday. The financial report shows that Coinbase's Q3 total revenue was $1.21 billion, up 79% year-over-year but down 17% quarter-over-quarter, missing the average analyst expectation of $1.26 billion; net profit attributable to common shareholders was $75.459 million, compared to a net loss of $2.265 million in the same period last year; diluted earnings per share was $0.28, missing the average analyst expectation of $0.40, compared to a loss of $0.01 per share in the same period last year. By business segment: trading revenue was $573 million, up 98% year-over-year but down 27% quarter-over-quarter; of which, retail trading revenue was $483 million and institutional trading revenue was $55.3 million. Subscription and service revenue was $556 million, up 66% year-over-year but down 7% quarter-over-quarter. Coinbase's third-quarter revenue reached $247 million, up 43% year-over-year and 3% quarter-over-quarter. In addition, Coinbase also announced a stock buyback program of up to $1 billion. Looking ahead, Coinbase expects fourth-quarter subscription and service revenue to be between $505 million and $580 million. Coinbase expects the revenue growth of this business to remain flat, due to a 10% drop in Ethereum prices in October compared to the average price in the third quarter, as well as adverse factors reflecting market expectations such as interest rate cuts.