Home » Coinbase (COIN) earnings Q3 2022

Coinbase (COIN) earnings Q3 2022

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In this photo illustration, the Coinbase logo is displayed on a smartphone screen.

Rafael Enrique | SOPA Images | Lightrocket | Getty Images

coin base reported monthly user numbers above analyst estimates, despite lower-than-expected revenue in the third quarter and the cryptocurrency exchange suffering larger-than-expected losses. Stocks jumped in long-term trading.

Here’s how the company did it:

  • Earnings: An adjusted loss of $2.43 per share, compared with analysts’ expectations of a loss of $2.40 per share, according to Refinitiv.
  • Earnings: Analysts expected $654 million, according to Refinitiv, compared to $590 million.

Earnings plummeted by more than 50% year-on-year as traders turned away from cryptocurrencies. The company’s financials have deteriorated, resulting in a loss of $545 million after Coinbase made more than $400 million in profits a year earlier.

“Transaction revenue has been significantly impacted by increasing macroeconomic and crypto market headwinds and trading volumes moving offshore,” said Coinbase. investor letter.

Stocks have lost more than three-quarters of their value this year due to a combination of plummeting cryptocurrency prices and exits from the riskiest stocks. BitcoinThe most popular cryptocurrency is down more than 70% from its all-time high in November 2021.

Coinbase’s user base has been declining throughout the year. The company said it had 8.5 million monthly trading users (MTU) in the third quarter, down from 9 million in the previous quarter and 9.2 million in the first quarter. Analysts had expected 7.84 million, according to StreetAccount.

For the full year, Coinbase says it will have “just below” 9 million monthly users. The company said it was “cautiously optimistic” to operate within his $500 million adjusted “loss guardrail” it set this year.

Retail transaction revenue was $346.1 million, down from $1.02 billion a year ago and below the consensus analysts surveyed by StreetAccount of $454.2 million.

According to filings, trading volume was $47 billion in October, and monthly user numbers through October were similar to Q3 results. Coinbase said in the fourth quarter it “expects lower transaction volumes and a similar number of MTUs compared to the third quarter results.”

After its stock market debut last year, Coinbase has staffed to meet the surge in demand for cryptocurrency trading tools and enthusiasm for emerging coins. However, the momentum reversed completely in his 2022, forcing the company to cut jobs. Coinbase, June Said 18% of full-time jobs have been cut, leading to more than 1,000 headcount reductions.

Ethereum accounted for 33% of the quarter’s trading volume, up from 22% last quarter, with 31% coming from Bitcoin. However, transaction revenue from Ethereum was only 24%, and Bitcoin, including that amount, made him 31%.

in SeptemberEthereum has undergone years of upgrades known as merges, designed to reduce the cryptocurrency’s energy consumption by over 99%.

Executives will discuss the results in a conference call beginning at 5:30 PM ET.

This news is breaking news. Please check the latest information.

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