Coinbase Reports Q3 Earnings

Investing.com — Coinbase reported Wednesday that its third-quarter earnings fell well short of Wall Street estimates due to weakness in cryptocurrencies, which kept a lid on trading volumes.

Key Details

• Weaker trading volumes weighed on performance.
• Coinbase Global Inc (NASDAQ:COIN) fell 4% in after-hours trading following the report.
• Q2 earnings reported at $0.28 per share on revenue of $1.2 billion, compared to Wall Street expectations of EPS $0.45 on revenue of $1.25 billion.

The earnings miss aligns with declining trading volume, which was hindered by overall weakness in crypto markets, leading to a 10% drop in the total crypto market cap sequentially in Q3.

Total trading volume in the US spot market, responsible for the bulk of Coinbase's revenue, declined 18% quarter-on-quarter, resulting in a 27% drop in transaction revenue to $573 million in Q3 from the previous quarter.