Coinbase Misses Q3 Earnings Estimates, Shares Slide in After-Hours Trading
Coinbase (COIN) reported third-quarter earnings and sales that fell short of Wall Street analysts' expectations on Wednesday, causing shares
Coinbase (COIN) reported third-quarter earnings and sales that fell short of Wall Street analysts’ expectations on Wednesday, causing shares to fall in after-hours trade.
Our Q3 2024 earnings report is now live onchain.
Mint the latest $COIN Earnings NFT to celebrate another quarter's worth of building.
→ https://t.co/FJDnr0B6Bf pic.twitter.com/GGA9qlJ52S
— Coinbase 🛡️ (@coinbase) October 30, 2024
According to FactSet statistics, the cryptocurrency exchange reported total revenue of $1.2 billion in the third quarter, compared to an average estimate of $1.26 billion. Meanwhile, earnings per share of $0.28 were lower than analysts’ forecasts of $0.45. Coinbase’s third-quarter adjusted Ebitda of $449 million fell short of the expected $469.2 million.
Retail trade revenue increased 95.6% year on year to $483.3 million, but down 27% from the previous quarter. Institutional trading decreased 13% from the previous quarter to $55.3 million, up 292% from a year ago.
$COIN | Coinbase is -2.4% after missing earnings and revenue estimates and suspending its FY outlook.
🔹 EPS: $0.28 vs. $0.51 est. 🔴
🔹 Revenue: $1.21B vs. $1.29B est. 🔴 pic.twitter.com/YDE3ncOhK3— CMG Venture Group (@CmgVenture) October 30, 2024
The company’s board of directors approved a $1 billion share buybacks this month. The repurchases have no expiration date, and the plan depends on market conditions.
Coinbase’s chief financial officer, Alesia Haas, stated on an earnings call that the company is being more strategic with its money and is looking for opportunities to return it through repurchases.
Revenue from Coinbase’s subscription and services, which include stablecoins, staking, and leverage for Prime traders, increased 66% from the previous year to $556.1 million.
The company anticipated flat growth in the sector, citing a 10% drop in ether prices in October versus to its third-quarter average, as well as interest rate reduction in accordance with market expectations, among other obstacles.
Really strong performance across the board. I think quarter to quarter, you obviously see volatility playing a role in trading revenues, and we saw that play out with softer market conditions in Q3, but we’re generally satisfied with the results. Anil Gupta, VP of Investor Relations, commented.
Coinbase posts third-quarter profit on trading strength https://t.co/Qnjwt0HbMg pic.twitter.com/9CPwhDcR5V
— Reuters (@Reuters) October 31, 2024
For much of this year, the cryptocurrency market has been in a depression, with prices hovering between $55,000 and $70,000. Bitcoin has been devoid of big triggers and has experienced low volatility as investors watched the U.S. presidential race from the sidelines. Coinbase has been a prominent lobbyist for the crypto business this year, spending millions to support pro-crypto political action committees.
Coinbase and Circle have a 50/50 revenue sharing arrangement for the interest income from USD Coin (USDC), the market’s second largest dollar-backed stablecoin. That revenue could be threatened in the current quarter, since interest rates are likely to fall further.
Coinbase Donates $25 Million to Crypto Super-PAC
Meanwhile, on Wednesday, the exchange contributed $25 million to crypto super-PAC Fairshake in 2025 for the midterm elections.
Coinbase committed another $25 million of funding to Fairshake, a political action committee for the digital-asset industry that has become an influential player in the US election. https://t.co/E4rzY8aq2R
— Bloomberg Technology (@technology) October 31, 2024
The cryptocurrency voter is already a formidable force, but it will only increase, according to CEO Brian Armstrong in a recent X post. The next Congress “will be the most pro-crypto” yet, he said, adding that “we’re not slowing down.”
Coinbase Global Inc (COIN) shares fell 5.2% in after-hours trading as the company reported third-quarter earnings. COIN finished down 3.61% at $211.74, then fell another 5.21% to $200.71 in after-hours trading, according to Google Finance. Its stock price is up almost 35% year to date.
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