coindesk.com
Shares of Coinbase (COIN) were falling more than 14% after-hours on Tuesday after the crypto exchange reported that its third-quarter revenue came in at just $1.24 billion, versus consensus analyst estimates of $1.61 billion, according to FactSet.
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Coinbase posted $1.1 billion in transaction revenue in the third quarter, down from about $1.9 billion in the second quarter, the company said.
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Q3 trading volume was $327 billion, down from $462 billion in Q2.
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Coinbase had 7.4 million monthly transacting users (MTUs) in Q3, down from 8.8 million in Q2, but up from 2.1 million in the year-ago quarter.
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As for its outlook, Coinbase said that “while we entered Q3 with softer crypto market conditions, driven by low volatility and declining crypto asset prices, market conditions improved meaningfully later in the quarter which we have continued to see into early Q4.”
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The company had previously warned that its number of MTUs and trading volume would be lower in the third quarter than the second quarter.
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Subscription and services revenue grew 41% quarter-over-quarter to $145 million in Q3, up from about $103 million in Q2.
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Shares of Coinbase were down more than 14% in after-hours trading on Tuesday following the release of the results.
Read more: Coinbase Proposes US Create New Regulator to Oversee Crypto
This is a developing story and will be updated.