Coinbase reports wider-than-expected loss and revenue miss


Coinbase Global Inc. late Thursday reported a wider quarterly loss and a 54% drop in revenue, saying the headwinds for its business will continue and likely intensify next year.

Coinbase COIN, -8.09% said it lost $545 million, or $2.43 a share, in the quarter, swinging from earnings of $406 million, or $1.62 a share, in the year-ago period.

Revenue dropped to $576 million from $1.24 billion a year ago.

Analysts surveyed by FactSet expected the crypto exchange to report a loss of $2.38 a share on revenue of $641 million.

Shares traded lower immediately after the report, but at last check were rising more than 8% in the extended session.

The quarter was “mixed” for Coinbase, the company said in a letter to shareholders. “Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore.”

On the plus side, Coinbase saw “strong growth in our subscription and services revenue,” it said.

Those headwinds, however, continued to impact transaction revenue, which was down 44% quarter on quarter, Coinbase said in the letter.

Trading volume dropped to $159 billion in the quarter from $217 billion in the second quarter.

“For 2022, we remain cautiously optimistic that we will operate within the $500 million adjusted EBITDA loss guardrail that we previously communicated,” the company said. That assumes that the crypto market does not deteriorate further, it said.

For next year, however, Coinbase is “preparing with a conservative bias and assuming that the current macroeconomic headwinds will persist and possibly intensify,” the company said.

Coinbase earlier this week said its chief product officer was stepping down as the company reorganizes its business.

In August, the company reported a $1.1 billion loss.

Coinbase shares have lost more than 77% this year, compared with losses of around 21% for the S&P 500 index SPX, -1.06%.

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