Coinbase FTW: The Exchange Beats Q3 Estimates

It has been just revealed that Coinbase is a huge winner! Check out the latest reports about the matter below and see how the exchange performed in Q3 2023.

Coinbase exceeded analyst expectations with their third-quarter revenue of $674.1 million. Although this represents a 4.7% decline from the previous quarter, there was still a 14.2% increase from the same period last year.

FactSet analysts had predicted quarterly revenue to be around $651 million.

“Q3 was a strong quarter for Coinbase,” the company wrote in a letter to shareholders. ” While we have generated a net loss through Q3, we are on track to deliver meaningful positive Adjusted EBITDA for 2023, reflecting the direction we set at the beginning of the year to be a company that can generate Adjusted EBITDA in all market conditions.”

Coinbase posted a net loss of $2 million for the quarter, according to the online publication The Block.

“In Q3, we obtained new licenses that enable us to access new markets and deliver new products [and] continued to drive toward regulatory clarity in the US,” the company said in its earnings statement.

The company generated $172 million in USDC stablecoin interest income during the quarter, the same notes say.

“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,” it wrote in its outlook for the current quarter.

During the third quarter, the trading volumes of Coinbase dropped drastically to $76 billion from $159 billion that the company had registered during the same period in the previous year.

The decline in trading volume has been continuing since the end of 2021 when prices for bitcoin and other cryptocurrencies began to fall rapidly.

Moreover, Coinbase’s total transaction revenue also decreased significantly, registering $288.6 million in the third quarter compared to $365.9 million during the same period in 2021.

This quarter’s transaction revenue was also less compared to the preceding quarter.

The company cited a significant decline in market volatility dragging on revenues. “Crypto asset volatility, another driver of revenue, continued to decline in Q3 and reached the lowest level we have measured since 2016,” Coinbase said.