Coinbase reports third-quarter loss as volumes drop - British Herald
November 26, 2022
Fintech

Coinbase reports third-quarter loss as volumes drop

Coinbase said it had a net loss of $544.6mln for the three months ended Sept. 30, or $2.43 per diluted share, compared with a profit of $406.1mln, or $1.62 per diluted share, a year earlier

On Thursday, U.S. cryptocurrency exchange Coinbase Global Inc reported a third-quarter loss as high inflation, rising interest rates and geopolitical tensions weakened demand for risky assets, sapping trading volumes for digital currencies like bitcoin.

Coinbase said it had a net loss of $544.6 million for the three months ended Sept. 30, or $2.43 per diluted share, compared with a profit of $406.1 million, or $1.62 per diluted share, a year earlier.

Transaction revenue fell 64% from a year earlier to $365.9 million.

“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” the company said in a shareholder letter.

Net revenue was down 53.3% year-over-year at $576.4 million.

Coinbase shares were up about 4% in late trades. The company reported a loss of $2.43 a share on revenue of $590 million, compared to a profit of $1.62 a share on revenue of $1.3 billion in the year-ago quarter. Analysts were expecting a loss of roughly $2.40 a share on revenue of about $656.6 million.

Coinbase said it had “a mixed quarter” as transaction revenue was “significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” the company said in a letter to shareholders.

But Coinbase saw “strong growth” in subscription and services revenue, aided in part by rising interest rates.

Reuters

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