PANews reported on October 31 that according to CoinDesk, on Wednesday, the third-quarter earnings and revenue released by the crypto exchange Coinbase (COIN) fell short of Wall Street analysts' expectations, causing a sharp drop in stock prices in after-hours trading. The exchange said its total revenue in the third quarter was $1.2 billion, lower than the average expectation of $1.26 billion. At the same time, earnings per share were $0.28, also lower than analysts' expectations of $0.45. Coinbase's adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) in the third quarter were $449 million, which also fell short of expectations of $469.2 million.
In a letter to shareholders, the company said the decline was mainly due to market weakness, while also noting that it saw growth in certain areas. The company also said it had authorized a repurchase of up to $1 billion in stock in October. There is no expiration date for the repurchase, and the company will purchase shares based on market conditions. "Our balance sheet has grown by more than $400 million, which enables us to launch this new stock repurchase program," Gupta said. The company had $8.2 billion in cash, cash equivalents, and USDC at the end of the third quarter.
Coinbase's main source of revenue is transaction fees, but this revenue fell 27% from the second quarter as trading volume on the U.S. exchange further declined. The exchange's stock price fell nearly 7% in the minutes after the report was released. The stock has risen about 22% this year, influenced by the overall bullish sentiment of digital assets.
