Coinbase Global Inc (NASDAQ:COIN) shares dropped 3.6% after-hours and look set to tumble further on Thursday after its latest financials failed to curry favour with Wall Street.
The crypto platform reported lower-than-expected earnings for the third quarter, with revenue at $1.2 billion, missing the anticipated $1.26 billion, and earnings per share at $0.28, below the forecasted $0.45.
Adjusted EBITDA also fell short at $449 million. Weak market conditions and a 27% drop in transaction fees contributed to lower trading volume, impacting revenue. Following the report, Coinbase’s stock dropped nearly 7% in after-hours trading.
In October, Coinbase approved a $1 billion share buyback with no expiry, contingent on market conditions, backed by a $400 million increase in its balance sheet.
Despite regulatory challenges, the company has introduced new services, including instant Visa debit transfers and expanded custody services, to diversify income and reduce reliance on trading volumes.
The stock closed at $211.74 valuing the business at just under $53 billion.