Coinbase, fourth quarter earnings exceed forecasts ── trading volume down 12% from third quarter | coindesk JAPAN | Coindesk Japan

On February 21, Coinbase, a major crypto asset trading company, announced its financial results for the fourth quarter (October-December 2022). Net revenue was $605 million, beating analysts’ expectations of $588 million and up 5% from $590 million in the third quarter.

Adjusted loss per share for the fourth quarter was $2.46, better than the $2.52 expected, according to FactSet. But trading volume was down 12% from the third quarter to $322 million.

Coinbase shares rose about 0.9% to $62.60 in after-hours trading on Feb. 21. Coinbase shares have surged 78% year-to-date alongside the rise in Bitcoin price, but are still down 67% over the past 12 months.

The company’s focus on subscriptions and services revenue was $283 million, up 34% from the previous quarter. Subscriptions and services accounted for nearly 50% of total revenue in the fourth quarter, largely driven by interest income of $162.2 million.

Coinbase said in a shareholder letter that in the first quarter of 2023, the cryptocurrency market has improved so far compared to the fourth quarter of 2022, with January transaction revenue of $120 million. . But the company cautioned how to take the results last year, given how quickly the market changed.

In recent weeks, regulatory actions by regulators have created uncertainty for the retail staking service and the company that jointly operates the USD Coin (USDC) stablecoin with Circle.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Shutterstock
｜Original: Coinbase Q4 Revenue and Earnings Beat Expectations, but Transaction Volume Falls 12% From Q3