Coinbase, the leading U.S. cryptocurrency exchange, announced its latest financial report, with third-quarter revenue of US$674.1 million, better than analysts expected. However, as the market chill persists, trading volume has declined for the second consecutive quarter, clouding Coinbase's operating prospects. Shadow, dragging the stock price down 5.5% after hours.
Coinbase's financial report showed that third-quarter revenue decreased by 4.7% quarterly but increased by 14.2% year-on-year to US$674.1 million, exceeding analysts' forecast of US$651 million; the net loss was US$2 million, which was significantly narrower than the loss of US$545 million in the same period last year; The adjusted loss was $0.01 per share, compared with analysts' expectations of a loss of $0.55 per share.
However, Coinbase’s total trading volume in the third quarter was only US$76 billion, down significantly from US$92 billion in the previous quarter, and lower than analysts’ expectations of US$80.1 billion; trading revenue in the third quarter was US$288.6 million, which was higher than the previous quarter. The $327 million in the first quarter was down 12%.
Coinbase's revenue and profits mainly come from trading revenue, accounting for 43% of total revenue. In a letter to shareholders , the company pointed out that the decline in trading revenue was due to the cooling of the cryptocurrency market and reduced volatility. Coinbase's trading volume has been declining since the price of Bitcoin and other cryptocurrencies began to decline sharply in late 2021.
Looking ahead, Coinbase expects fourth-quarter trading revenue to be in line with the third quarter, with trading revenue in October of this year being approximately $105 million. In addition, Coinbase also stated that although it still suffered a net loss in the third quarter, it is confident that EBITDA will turn positive in 2023.
