Coinbase’s stock price is seeing a small bump after the crypto exchange’s third-quarter shareholder letter indicated the company had cut costs and seen a rise in subscription and services revenue.
Coinbase says Q3 was a “mixed quarter” for the company.
The top US crypto exchange registered $366 million in Q3 transaction revenue, a 44% decline from the second quarter of 2022. Coinbase’s overall net revenue was $576 million, a 28% quarter-on-quarter decrease.
Conversely, however, the exchange’s subscription and services revenue stood at $211 million, a 43% increase from Q2.
Coinbase CEO Brian Armstrong says on the Q3 earnings call that he’s really excited about the growth in that revenue category.
“This is something where, three-plus years ago, we started planting the seeds of building some of these different product lines with different revenue streams. And we’ve really started to see that come to fruition, which means the portfolio of products that Coinbase has and works on has started to provide less volatility for the parent company revenue overall. We still have a long ways to go on that, but it’s a great trend and it’s moving in the right direction.”
Another positive: Coinbase’s total operating costs declined to $1.1 billion, a 38% decrease from the previous quarter.
Investors appeared to interpret the quarterly report positively. Coinbase’s stock (COIN) rose 5.41% today, up to $58.82. It initially jumped to a high of $61.53 before partially retracing.
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