Coinbase shares rise nearly 9%

Coin LibraryThe cryptocurrency exchange’s financial performance improved significantly in the third quarter, with net losses narrowing to $2 million, compared with a massive loss of $545 million in the same period last year.

The company’s third-quarter results released on November 2, 2023 showed that total revenue increased 14.2% year-on-year to $674.1 million, exceeding Stock Exchange Group’s expectations of $653.2 million in London.

However, revenue fell 4.8% from the previous quarter.

Of total revenue, $334.4 million came from subscriptions and services, primarily through rewards Stablecoin and Blockchainwhile transaction-based revenue was $288.6 million.

Despite good financial results, Coinbase has seen a significant drop in trading volume.

Consumer transaction volume fell to $11 billion from $26 billion in the third quarter of 2022, while institutional transaction volume fell to $65 billion from $78 million in the second quarter to $133 million in the third quarter of 2022.

Despite the challenging trading environment, Coin Library expressed satisfaction with its third-quarter results, saying:

“The third quarter was a strong quarter for Coinbase. We are pleased with our financial results against the backdrop of multi-year low volatility.”

The exchange also reported its third consecutive quarter of positive adjusted EBITDA, demonstrating progress in building a sustainable business model for long-term growth.

Adjusted EBITDA, which stands for “earnings before interest, taxes, depreciation, and amortization,” is an important metric used by industry analysts to make meaningful comparisons between companies.

Shares of Coinbase (COIN) rose 8.7% during trading hours to $84.6 following the announcement of third-quarter results.

However, the stock later fell 3.7% to $81.50 in after-hours trading, according to Google Finance data.

All in all, despite the challenges posed by lower trading volumes and market conditions, Coinbase demonstrated resilience and improved its financial performance in the third quarter of 2023, with net losses narrowing, revenue exceeding expectations, and adjusted EBITDA remaining positive.

The company’s focus on sustainability and long-term growth remains a key driver of future success.

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