Coinbase Shares Dip 5% After-Hours despite Q3 Earning Beats Estimates

<p dir="ltr">Coinbase Global (Nasdaq: COIN) has managed to beat the market estimates with its third-quarter revenue of $674.1 million and an adjusted loss of $0.01 per share. However, shares of the crypto exchange plummeted nearly 5 percent due to the missed total trading volume expectations.</p><p dir="ltr">Mixed Q3 Results of Coinbase </p><p dir="ltr">According to the official figures published yesterday (Thursday), the total trading volume between July and September amounted to $76 billion, falling short of the estimated $80.1 billion. The figure also slipped from $92 billion in the previous quarter.</p><p dir="ltr">Transaction revenue for the third quarter reached $288.6 million, reflecting a 12 percent decline <a href="https://www.financemagnates.com/cryptocurrency/coinbase-narrows-losses-in-q2-despite-declining-trading-volumes/">quarter-over-quarter</a>. Coinbase attributed the drop in transaction revenue to the overall decline in the crypto markets and increased volatility.</p><p dir="ltr">The crypto exchange, which went public in April 2021, reported its seventh consecutive quarter of losses. However, it significantly narrowed down the net loss to $2 million, down from $97 million in the previous quarter. Adjusted EBITDA for the quarter stood at a positive $181 million, a decrease from the previous quarter’s $194 million.</p><p dir="ltr">In a letter to <a href="https://www.financemagnates.com/tag/coinbase/">Coinbase</a> shareholders, it was stated: “We anticipate that we will generate meaningful positive Adjusted EBITDA in full-year 2023, revised from our prior goal of improving full-year 2023 Adjusted EBITDA in absolute dollar terms versus full-year 2022.”</p><p dir="ltr">The California-based exchange managed to lower its operating expenses by 4 percent, totaling $754 million. Costs related to technology &amp; development, sales &amp; marketing, and general &amp; administrative expenses collectively decreased 1 percent to $654 million.</p><p dir="ltr">Meanwhile, with the latest crypto rally, Coinbase has already generated approximately $105 million of transaction revenue in October.</p><blockquote><p lang="en" dir="ltr">Our Q3’23 update is in.Read the full shareholder letter and tune in to our earnings call here → <a href="https://t.co/fod43YZcAY">https://t.co/fod43YZcAY</a> <a href="https://t.co/Iusjw1Uysx">pic.twitter.com/Iusjw1Uysx</a></p>— Coinbase