Coinbase reports better-than-expected user numbers even as third-quarter revenue plunges

Even though third-quarter revenue missed estimates and the exchange had a wider-than- expected loss, it was still reported that user numbers were higher than expected. The stock increased in value.

The company did what it was supposed to.

• Earnings: Loss of $2.43 per share, adjusted, vs. loss of $2.40 per share as expected by analysts, according to Refinitiv.
• Revenue: $590 million, vs. $654 million as expected by analysts, according to Refinitiv.

Revenue plummeted as traders stopped using Cryptocurrencies. After generating a profit of over $400 million a year earlier, the company lost $545 million.

The company said in its investor letter that the transaction revenue was impacted by macroeconomic andcryptocurrencies.

The stock has lost more than 75% of its value this year because of a plunge in the price of cryptocurrencies.

The user base has been decreasing. The company said it had less users in the third quarter than it did in the previous two quarters. The analysts were expecting more than 7 million.

The number of monthly users will be slightly below 9 million. The company is cautiously optimistic that it will operate within the $500 million adjusted loss guardrail.

Retail transaction revenue came in at $346.1 million, down from $1.02 billion a year earlier and below the $450 million StreetAccount consensus.

October trading volume was $47 billion, and monthly users were roughly in line with the third quarter results. In the fourth quarter, we expect lower trading volume and a similar number of metric trades compared to the third quarter.

After its stock market debut last year, there was a surge in demand for its trading tools. The company was forced to slash its workforce due to the reversal of momentum. In June, the company said it was cutting more than 1,000 jobs.

In the quarter, 32% of trading volume was from ether, up from 22% in the prior period. Even with its volume, bitcoins accounted for 31% of transaction revenue.

In September, ethereum underwent a years-in-the-making upgrade known as the merge, which was designed to cut the currency's energy consumption.

The results will be discussed on a conference call by executives. There is an hour and a half later.

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The net interest income of the company jumped from the previous quarter.