Coinbase Global Inc (COIN) shares dropped 5.2% in after-hours trading as its third-quarter earnings and revenue came in under Wall Street estimates, with the crypto exchange blaming “softer market conditions.”
Coinbase’s Q3 results shared in an Oct. 30 shareholder letter show revenues hit $1.13 billion, up over 81% from the same quarter a year ago but falling short of Wall Street analysts forecasts of $1.26 billion.
The crypto exchange’s earnings per share came in at 28 cents, missing analyst expectations of 45 cents a share by 46.5%. Its net income was $75 million, including $121 million in unrealized losses on its crypto holdings.
COIN closed down 3.61% at $211.74 and continued to fall a further 5.21% to $200.71 in after-hours trading, according to Google Finance. Its share price is up around 35% year-to-date.
Coinbase traded mostly flat on Oct. 30, dropping after hours after it missed earnings expectations. Source: Google Finance
The crypto market has traded sideways for most of 2024 after Bitcoin (BTC) hit a high in March but has since stayed in a price band of around $55,000 to $65,000 and has only recently broken above $70,000 on Oct. 29.
“Crypto asset volatility — a key driver of trading volume — declined approximately 5% when comparing the Q3 average with the Q2 average,” Coinbase said in its letter.
Coinbase, the largest crypto exchange in the United States, saw transaction revenues fall 27% quarter over quarter to $573 million — however, it was an over 98% increase from Q3 2023.
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Retail trading revenue grew 95.6% from the year-ago quarter to $483.3 million but was down 27% from the last quarter. Institutional trading dropped 13% from last quarter to $55.3 million, up 292% from a year ago.
The company said its board approved a $1 billion share buyback this month. The repurchases are without expiration, and the plan is based on market conditions.
“We are being more strategic with our capital and look to create an opportunity to return this capital through repurchases,” Coinbase chief financial officer Alesia Haas said on an earnings call.
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Update (Oct. 30, 11:45 pm UTC): This article has been updated to add information throughout.