Coinbase Q3 revenue and income are out, and things don’t look good for the company in the short term. In Q2, they posted a total profit of $1.6 billion, and in Q3, it has dropped 75% to just $406 million. In the above lines, I did mention that things don’t look in the short term because if you compare Q3 2021’s revenue with Q3 2020’s revenue, it is still a phenomenal 500% jump. It seems like that the Q2 2021 for every crypto exchange and company was a dream quarter and didn’t signify the actual growth. I say this because even Robinhood saw a fall in revenue and profit in Q3 2021.
Coinbase shares fall
On the last trading day, the shares of the company did good and closed at $357. But after the latest earnings report for Q3 was out, the price of shares slumped by nearly 13% in the after trading hours. At present, the candle close is at $310, and it made a low of $302.12. This fall is huge, and it’s gonna take some time for the market to recover from the quarterly report. The company also posted a $1.62 earning per share, which is 10% less than the FactSet estimate. At the same time, it has actually surpassed the profit estimate at $380 million. While all this is happening, we should note that shares of Robinhood also took a hit. And the kind of volatility that crypto markets bring, it is empirical that such variations in revenue will happen from time to time.
Coinbase is optimistic
The company has said that they had a good quarter in terms of the development of new products, the NFT marketplace, and deeper investor engagement. The company made a statement that they are not looking at this quarter-to-quarter and are focusing on long-term growth showing that they understand the market volatility. In fact, the company’s revenue from subscription services has increased, which is expected to increase its profits in the long run. Also, note that their clash with the SEC regarding the lending program they were planning to launch was a missed opportunity.
What are your thoughts on Coinbase’s Q3 results? And do you think that Coinbase shares will recover soon from the fall? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.