Coinbase (NASDAQ:COIN), the first publicly traded crypto exchange, reported Q3 earnings today and according to the Street, the numbers were a disappointment.
At this time, in after-hours trading, shares of Coinbase are down by almost 5% following the 4 PM close, at around $358.89.
During the quarter, Coinbase reported total revenue of $1.5 billion, down 26% quarter over quarter.
Transaction revenue was $764 million, down 39%, subscription and services revenue was $656 million, down 6% while total operating expenses grew $193 million or 15% quarter over quarter to $1.5 billion, driven by $307 million in costs related to the data theft incident disclosed earlier this year.
Adjusted Net Income was $33 million (excluding $1.5 billion in pre-tax gains on strategic investments—which included an unrealized gain on the investment in Circle—and a $362 million pre-tax gain on our crypto investment portfolio (largely unrealized)), and Adjusted EBITDA was $512 million.
Coinbase ended the quarter with $9.3 billion in resources, $1.8 billion in crypto assets held for investment, and 4,279 full-time employees.
Coinbase provided Q3 guidance, with subscription and services revenue expected to be within $665 million to $745 million. Transaction expenses to be in the mid-teens as a percent of net revenue, and technology & development and general & administrative expenses to range from $800-$850 million. Sales & marketing expenses are anticipated to be in the range of $190 million to $290 million.
Coinbase highlighted the future of crypto as more than financial services. The company pointed out its Base Chain as faster, cheaper, and open.
Coinbase said they are “working to build an everything exchange: one platform for everything you can trade onchain.”
“We’ve always believed that every asset class will move onchain, and we’re building this frontier – all in a compliant, trusted, and easily accessible way.”
The company also expects to benefit from the more accommodating political environment following the transition from the crypto-hostile Biden Administration to the innovation-friendly Trump Administration.
