Coinbase Q3 Earnings Highlights: Revenue Miss, EPS Miss, Transaction Revenue Falls From Q2

Cryptocurrency platform company Coinbase Global COIN reported third-quarter financial results after the market close Wednesday.

Here are the key highlights.

What Happened: Coinbase reported third-quarter revenue of $1.21 billion, which missed a Street consensus estimate of $1.26 billion, according to data from Benzinga Pro.

The company reported earnings of 28 cents per share, which missed a Street consensus estimate of 42 cents per share.

Coinbase's third quarter marked a seventh consecutive quarter of positive adjusted EBITDA, which came in at $449 million.

Coinbase trading volume was $185 billion in the third quarter, down 18% quarter-over-quarter. Transaction revenue was $573 million in the third quarter, down 27% quarter-over-quarter.

Consumer transaction revenue was $483.3 million, which was down 27% quarter-over-quarter. Institutional transaction revenue was $55.3 million and down 13% quarter-over-quarter.

Coinbase had subscription and services revenue of $556 million in the third quarter, down 7% quarter-over-quarter.

In the third quarter, Bitcoin BTC/USD was the largest asset by transaction revenue (35%) and trading volume (37%). Ethereum ETH/USD ranked second for transaction revenue (16%) and trading volume (15%). Solana SOL/USD was listed as the third-largest cryptocurrency for transaction revenue at 10%.

The company's Base is now the No. 1 layer two network in terms of transactions and total value locked, Coinbase said.

Read Also: Coinbase Q3 Earnings Preview: Revenue Streak On The Line As Bitcoin Nears All-Time Highs

What's Next: The company is guiding for fourth-quarter subscription and services revenue in a range of $505 million to $580 million.

The month of October has generated $190 million in total transaction revenue to date, the company said.

Coinbase said it expects higher sales and marketing expenses in the fourth quarter, driven by higher USDC USDC/USD rewards expenses.

The company highlighted the 2024 presidential election as an event that could impact trading volume and volatility.

"The upcoming 2024 elections are the next major milestone in our ongoing work to drive regulatory clarity for crypto," the company said.

COIN Price Action: Coinbase stock is down 3.66% to $204 in after-hours trading Wednesday versus a 52-week trading range of $73.56 to $283.48.

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Photo courtesy of Coinbase.