Coinbase Q3 financial report: revenue reached $590 million, trading volume fell short of expectations

念银思唐

读者

2022-11-04 04:53

This article is about 1148 words, reading the full article takes about 2 minutes

Its monthly transacting users (MTU) were 8.5 million, beating expectations of 7.7 million.

AI Summary

Expand

Its monthly transacting users (MTU) were 8.5 million, beating expectations of 7.7 million.

This article comes fromThe Blocksecondary title

Odaily Translator | Nian Yin Si Tang

Summary:

- Coinbase's monthly transacting users (MTU) fell to 8.5 million in Q3 from 9 million in Q2.

- Coinbase EBITDA came in at negative $116 million, beating expectations for negative $208 million.

Coinbase’s third-quarter trading volumes fell short of expectations, while its monthly transacting users (MTU) beat expectations. Its shares fell sharply in after-hours trading.

The cryptocurrency exchange said third-quarter revenue of $590 million was below the $641 million expected by analysts polled by FactSet. The MTU was 8.5 million, higher than the expected 7.7 million.

Coinbase subscription and service revenue is now expected to continue growing, reaching $700 million this year, compared with more than $500 million in such services in 2021, according to FactSet estimates.

Coinbase also said that next year will be a tough one, noting that it is preparing "with a conservative bias and assuming that current macroeconomic headwinds will persist and possibly intensify."

Shares in the exchange wobbled in the hours after the news, falling to around $53.40 before briefly topping $60. Coinbase stock was trading at $57.50 after the close, up from $55.80 at the close.The exchange in the second quarterfinancial report

China warned of a poor third quarter, with trading volumes falling to near two-year lows. The MTU for the second quarter was 9 million, compared to 9.2 million for the first quarter.

MTU is defined as any retail trader who actively or passively trades one or more products on the platform at least once within a 28-day rolling period. The MTU presented in the financial report is the average value of each month of the current quarter.

Coinbase’s trading volume for the quarter was $159 billion, missing expectations of $191 billion. Of this, retail investors accounted for only $26 billion, while institutional investors accounted for $133 billion. Among them, the transaction volume in October fell to the lowest level since December 2020. The drop in trading volume can be seen on The Block's data dashboard below.

Assets on the platform rose to $101 billion from $96 billion in the previous quarter. Coin prices have generally stagnated over the past three months. On June 30, Bitcoin was trading above $19,000, and by September 30, Bitcoin was trading somewhat higher, but still below $20,000.

As of Sept. 30, Coinbase held about $5 billion in cash and equivalents, compared with $5.7 billion in the second quarter. Meanwhile, total spending fell to $1.1 billion from $1.8 billion in the previous quarter.

After the earnings report, FactSet data showed that Coinbase is expected to generate an average transaction revenue per user of $20 for the full year, compared with $24 in the third quarter. Sales and marketing expenses are expected to rise from $500 million to $550 million, and up to $600 million for the full year.Recently Coinbasedisclose