Coinbase Cuts Q3 Losses in Half to $545M

Crypto exchange Coinbase (COIN) cut its third quarter losses by 50% to $545 million from $1.1 billion in the second quarter, the company reported Thursday. But its transaction revenue continued to be significantly impacted by macroeconomic and crypto market headwinds, as well as trading volume moving offshore, the company said in its shareholder letter.

Transaction revenue was $366 million, down 44% from Q2, driven by lower trading volume. Meanwhile, subscription and services revenue increased 43% sequentially to $211, driven by higher interest income.

Overall net revenue of $576 million was shy of the FactSet estimate of $646 million and down from $803 million in Q2.

Coinbase shares fell 0.5% to $55.55 in after-hours trading on Thursday. Coinbase shares are down more than 75% this year, compared to bitcoin’s roughly 56% decline. Coinbase’s stock has plummeted this year with the crypto and equity market rout leading to a slowdown in retail trading. In response, Coinbase slashed around 1,100 jobs in June and has focused on controlling costs.

Coinbase is scheduled to hold an earnings call with analysts at 5:30 p.m. ET.

This is a developing story and will be updated.

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