Cryptocurrency exchange Coinbase narrowed its net loss to $2 million in the third quarter as it notched a year-on-year increase in revenue despite lower trading volumes.
The firm’s net loss in Q3 was trimmed from a $545-million net loss in the prior year period, according to a Nov. 2 earnings statement.
Total revenue increased 14.2% year-on-year to $674.1 million, though quarter-on-quarter revenue fell 4.8%. The figure beat London Stock Exchange Group’s estimate of $653.2 million, according to a report from Reuters.
Of the total revenue, $334.4 million came from subscriptions and services (mostly stablecoin and blockchain rewards), while $288.6 million came from transaction-based revenues.
Our Q3’23 update is in.
Read the full shareholder letter and tune in to our earnings call here → https://t.co/fod43YZcAY pic.twitter.com/Iusjw1Uysx
— Coinbase ️ (@coinbase) November 2, 2023
Meanwhile, consumer trading volume came in at $11 billion, a fall from $26 billion in Q3 2022.
Institutional trading volumes came in at $65 billion, down from $78 million in Q2 and $133 million in Q3 2022.
These volumes have been trending downward for five consecutive quarters.
Despite this, Coinbase said in a statement it was pleased with how the quarter played out:
“Q3 was a strong quarter for Coinbase. Amid multi-year low levels of volatility, we are pleased with our financial results.”
The exchange also produced a positive adjusted EBITDA for the third consecutive quarter — a sign that it’s building toward a “sustainable business” that can drive “long term growth,” it said.
Adjusted EBITDA stands for “earnings before interest, taxes, depreciation and amortization” and is a metric that provides analysts with a means to make more meaningful comparisons to a variety of companies in the same industry.
Related: Coinbase launches regulated crypto futures services for US retail traders
Coinbase’s share price (COIN) spiked 8.7% to $84.6 during trading hours but then fell 3.7% to $81.5 in after-hours trading, following the results filing, according to Google Finance.
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