Coinbase nearly halves losses in Q3

Coinbase’s net loss in the third quarter of 2022 was $545 million versus $1.1 billion in the prior period. The shares rose.

Our Q3’22 financial results are in.

Check out our letter to shareholders:https://t.co/JmThnye15x

— Coinbase (@coinbase) November 3, 2022

In unaudited results, the exchange also said that monthly active users declined from 9 million to 8.5 million.

Revenue from transactional fees fell 44% — from $655.2 million to $365.9 million. In the institutional segment the decline was more pronounced — down 49%.

At the same time, the company cut operating expenses by 38%: $1.15 billion versus $1.47 billion.

Additionally, revenue from subscription-based services rose to about the level of Q4 2021, reaching $210.5 million.

As of the end of September, the value of digital assets on the platform stood at $101 billion ($96 billion in the preceding quarter).

Coinbase’s cash and cash equivalents reserves declined to $5 billion from $5.7 billion.

During the third-quarter earnings call, Coinbase’s CFO Alesia Haas addressed the year-end guidance:

“When we’re on the upswing, we make profits; when we’re down, we plan to incur prudent losses.”

Coinbase’s results largely beat guidance from both the company and market analysts. According to ForkLog‘s report, October’s shares rose by 5%. As of writing, pre-market quotes for COIN stood at $57.41, up 5.3% from the close.

ARK Invest’s Cathie Wood increased her stake in Coinbase in October for the first time since July. The flagship Ark Innovation ETF bought 10,880 Coinbase shares, bringing the total position to $60.5 million, or 8% of AUM.

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