Coinbase Global Inc. exceeded expected revenue in its latest quarter, despite a decline in trading volumes. The company reported a net loss of $2 million in the third quarter, compared to a loss of $545 million in the same quarter last year. Analysts projected a loss of 55 cents per share.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $181 million, showing significant improvement from the $116 million loss in the previous year. The FactSet consensus predicted $119 million in adjusted EBITDA.
Revenue rose to $674 million, surpassing the anticipated $651 million. Consumer transaction revenue decreased by 11% sequentially to $275 million, while institutional transaction revenue dropped by 18% to $14 million. However, subscription and services revenue remained relatively stable at $334 million.
Coinbase's subscription and services revenue encompass various areas such as custody and blockchain rewards.
Although shares were down approximately 1% in aftermarket trading, Coinbase remains optimistic about the future. The company observed a total trading volume of $76 billion, lower than the $92 billion recorded in the previous quarter. Consumer trading volumes decreased from $14 billion to $11 billion, while institutional volumes dropped from $76 billion to $65 billion.
Bitcoin trading volume accounted for 38% of the overall volume, slightly lower than the 40% seen in the previous quarter.
While Coinbase reported total transaction revenue of about $105 million in October, the company urges caution in extrapolating these results.
Looking ahead, Coinbase expects fourth-quarter subscription and services revenue to remain relatively unchanged if there are no major changes in the crypto and fiat assets stored by customers on its platform. Analysts predicted $335 million in subscription and services revenue for the current quarter, compared to Coinbase's third-quarter result of $334 million.
