Despite incurring losses, the firm has managed to cut its third-quarter costs by 50%
Crypto exchange Coinbase’s third-quarter (Q3 CY22) earnings report indicated a huge drop in its transaction revenue and also suggested that the firm has managed to cut its losses by 50%.
In the shareholder’s letter, the firm stated that the decline in revenue was due to the larger macroeconomic effect as the market witnessed a decline in daily crypto market cap, with volatility declining to 30%.
“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as the trading volume moving offshore,” the report stated.
The letter also disclosed that Coinbase saw transaction revenue of $366 million, representing a 44% decline from its second-quarter earnings. The monthly transacting users dropped to 8.5 million—down from 9 million in the prior quarter, but beating the estimates of 7.8 million. The overall net revenue was $576 million—a 28% decline—and total operating expenses were $1.1 billion, down 38% compared to the previous quarter.
However, despite incurring losses, coinbase has managed to cut its third-quarter losses by taking measures such as downsizing the workforce by 18%.
Recently, in August, the firm announced its partnership with asset management giant BlackRock. The crypto exchange also stated, “For 2023, we are preparing with a conservative bias and the current macroeconomic headwinds will persist and possibly intensify,” as per reported by YourStory.
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