(Coinbase) Shares of Coinbase fell almost 15% on Tuesday after-hours trading after its third-quarter revenue of $1.31 billion missed expected $1.58 billion. The revenue was more than 300% increase from the prior year.
Coinbase’s shares were also weighed down by a decline in active users, with the monthly transacting users hitting 7.4 million in the third quarter, down from 8.8 million in the previous quarter but higher than 2.1 million in the prior year.
The exchange’s trading volume fell 29% from the previous quarter to $327 billion.
The nine-month revenue was $5.34 billion, an increase from 692.4 million in the comparable period of 2020.
Coinbase reported a net income of $405 million in the third quarter, more than $81.3 million posted in the prior year and above the estimated $380 million. The nine-month net income was $2.78 billion, up from $145.5 million in the comparable period of last year.
Coinbase’s missed earnings reflect softer crypto market conditions, characterized by low volatility and falling asset prices at the start of the third quarter.
The company urged investors to take a longer-term outlook of the digital asset industry, with the CEO Brian Armstrong expecting non-fungible tokens to play a potentially bigger role in the company than cryptocurrencies.
Coinbase now projects MTUs to be at an average of 8.0 million and 8.5 million for FY21. Annual net transaction revenue per user is expected to average $50 per month in FY21.
COIN: NASDAQ is down -11.09% on premarket.
