Coinbase Global (Nasdaq: COIN) has outperformed market predictions with its third-quarter financial results, reporting a revenue of $674.1 million and an adjusted loss of $0.01 per share. Despite this impressive performance, the crypto exchange giant saw a 5% dip in its shares during after-hours trading, primarily due to lower-than-expected total trading volume figures.
Mixed Q3 Outcomes for Coinbase
Official data released on Thursday revealed that the total trading volume for the period spanning July to September reached $76 billion, falling short of the estimated $80.1 billion. This figure also represented a decrease from the previous quarter’s $92 billion in trading volume.
Transaction revenue for the third quarter amounted to $288.6 million, reflecting a 12% decline compared to the previous quarter. Coinbase attributed this drop in transaction revenue to the overall crypto market’s reduced activity and increased volatility.
Despite going public in April 2021, Coinbase reported a loss for the seventh consecutive quarter. However, the net loss significantly decreased to $2 million, down from the previous quarter’s $97 million. The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached a positive $181 million, a slight decline from the previous quarter’s $194 million.
In a letter to Coinbase shareholders, the company expressed its optimism, stating, “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.”
Coinbase, headquartered in California, managed to reduce its operating expenses by 4% to $754 million. Costs related to technology and development, sales and marketing, and general administrative expenses collectively decreased by 1% to $654 million.
Additionally, Coinbase benefited from the recent cryptocurrency market rally, as it generated approximately $105 million in transaction revenue in October. Despite the slight dip in after-hours trading, the company’s Q3 performance suggests it remains a significant player in the crypto industry.