Coinbase (NASDAQ:COIN) reported better-than-expected EPS and revenues for Q3 but saw a decrease in trading volumes for the second quarter in a row. As a result, shares fell more than 4% after-hours today.
Q3 EPS came in at ($0.01), better than the consensus estimate of ($0.55). Revenue fell 5% quarter-over-quarter to $674.15 million, beating the consensus estimate of $650.97M.
Q3 total transaction revenue fell 12% quarter-over-quarter to $289M, driven by a 17% decline in total trading volume, partially offset by higher realized fees resulting from the mix of trading activity on the platform in the quarter. Q3 subscription and services revenue was largely flat quarter-over-quarter, coming in at $334M.
For Q4, the company expects subscription and services revenue to be approximately flat with Q3, and transaction expenses as a percentage of net revenue to be in the mid-teens.
Furthermore, the company estimates to generate meaningful positive adjusted EBITDA in full-year 2023, revised from its prior goal of improving full-year 2023 adjusted EBITDA in absolute dollar terms versus 2022.