Coinbase Q3 Earnings Highlights: Revenue Miss, EPS Miss, Transaction Revenue Decline vs. Q2 – Coinbase Glb (NASDAQ:COIN)

Cryptocurrency platform companies Coinbase Global COIN announced third-quarter financial results after the market closed on Wednesday.

Here are the key highlights.

What happened: Coinbase reported third-quarter revenue of $1.21 billion, missing the Street consensus estimate of $1.26 billion, according to data from Benzinga Pro.

The company reported profit of 28 cents per share, missing the Street consensus estimate of 42 cents per share.

Coinbase's third quarter marked its seventh consecutive quarter of positive Adjusted EBITDA, which amounted to $449 million.

Coinbase's trading volume was $185 billion in the third quarter, down 18% quarter-on-quarter. Transaction revenue was $573 million in the third quarter, down 27% quarter-on-quarter.

Consumer transaction revenue was $483.3 million, down 27% sequentially. Institutional transaction revenue was $55.3 million, declining 13% sequentially.

Coinbase posted subscription and services revenue of $556 million in the third quarter, down 7% from the previous quarter.

In the third quarter Bitcoin BTC/USD was the largest asset by transaction revenue (35%) and trading volume (37%). Ethereum ETH/USD Second place in transaction revenue (16%) and trading volume (15%). Solana SOL/USD was listed as the third largest cryptocurrency for transaction revenue at 10%.

According to Coinbase, the company's Base is now the No. 1 Layer 2 network in terms of transactions and total value.

Also Read: Coinbase Q3 Earnings Preview: Revenue Decline Looms as Bitcoin Nears All-Time Highs

What's next?: The company forecast fourth-quarter subscription and services revenue in the range of $505 million to $580 million.

The company said the month of October so far has generated $190 million in total transaction revenue.

Coinbase said it expects higher sales and marketing costs in the fourth quarter due to higher expenses USDC USDC/USD Rewards spending.

The company highlighted the 2024 presidential election as an event that could impact trading volume and volatility.

“The upcoming 2024 elections are the next major milestone in our ongoing work to provide regulatory clarity for crypto,” the company said.

COIN price action: Coinbase shares fell 3.66% to $204 in after-hours trading on Wednesday, compared with a 52-week trading range of $73.56 to $283.48.

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Photo courtesy of Coinbase.