Coinbase Exceeds Revenue Projections in Q3
Coinbase has reported a revenue of $674 million in Q3, surpassing analysts’ expectations. This represents a 14.2% increase compared to the previous year but a 4.8% decrease from the previous quarter. The company generated $288.6 million in transaction revenue and $334.4 million in services and subscription revenue during this period. However, Coinbase reported a net loss of $2 million.
Details from Coinbase’s Q3 Earnings Report
According to the earnings statement, Coinbase’s balance sheet held over $5.5 billion in USD assets, showing a quarterly increase of $20 million. The consumer segment saw a decrease in advanced trading volume due to low market volatility. The total transaction revenue for Q3 was $289 million, with a 12% decline from the previous quarter. Consumer transaction revenue was $275 million, down 11% from the previous quarter.
Advanced trading volume within the consumer category declined more than simple trading volume, resulting in a higher blended average fee rate in Q3 compared to Q2. Institutional transaction revenue amounted to $14 million, representing an 18% decrease from the previous quarter.
Coinbase’s Outlook for Q4
In Q4, Coinbase expects technology and development expenses, as well as general and administrative expenses, to range from $525 million to $575 million. Sales and marketing expenses are projected to be between $85 million and $95 million.
The company has revised its goal for full-year 2023 Adjusted EBITDA and now anticipates achieving meaningful positive Adjusted EBITDA by the end of that year.
Hot Take: Coinbase Surpasses Revenue Projections with Strong Q3 Performance
Coinbase has exceeded revenue expectations in Q3, reporting $674 million in revenue. Despite a decrease in advanced trading volume and total transaction revenue, the company remains optimistic about its financial results. Coinbase’s balance sheet shows a quarterly increase in USD assets, indicating stability and growth. Looking ahead to Q4, Coinbase expects expenses to range within specific figures and aims to achieve positive Adjusted EBITDA by the end of 2023. With its strong performance in Q3, Coinbase continues to establish itself as a leading player in the crypto industry.
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