After trading down $4.91 (-8.09%) to $55.80 during the day's regular trade the stock was up to $$8.55 after-hours. Still a long way from the glory days though. Here's the chart since it came public in that funky flotation direct listing:
From PYMNTS.com, November 3:
Coinbase reported another brutal earnings miss in the third quarter of 2022, losing $545 million and missing earnings targets by a little and revenue by a lot.
The Nasdaq-listed cryptocurrency exchange has seen its revenue cut in half from Q3 2021, with the current quarter’s revenue of $590 million well below the $654 million analysts predicted, according to CNBC. Coinbase share price is down about 70% from its November 2021 all-time-high.
But user numbers, although down 500,000 to 8.5 million, dropped far less than analysts expected.
CEO Brian Armstrong repeated his previous comments that the company expects losses in down markets and plans to continue to invest through them, noting that in 2021, “we did roughly $7 billion in revenue and $4 billion of positive EBIDTA” and is shooting for a $500 million EBIDTA loss this year.
The “macro headwinds” of crypto winter and the overall state of the U.S. economy came up a lot — and could worsen CFO Alesia Haas said.
However, Coinbase’s ongoing efforts to build subscriptions and services revenue — among them is Coinbase Pay, its merchant crypto payment technology offering — remains a big focus, and one the company believes will be a lot more stable long-term than trading fees.
Those have plummeted across the industry as less price volatility in bitcoin and other cryptocurrencies since the summer as led to fewer trades — something stock and crypto trading firm Robinhood’s CEO, Vlad Tenev, said in his earnings all Wednesday (Nov. 2).
And Coinbase is restructuring in the wake of the departure of Chief Product Officer Surojit Chatterjee, who it lured from Google for a king’s ransom three years ago, with a focus on three product segments: Consumers, institutions and developers.
Other plans include increased expansion abroad, potentially acquiring companies with licenses to ease the way.
What the company does not intend to do is get into a trading fee war with companies like Robinhood, which offers zero-fee trading, and Binance, which has offered it on bitcoin. Saying that if you factor in spread versus fees, Coinbase is “roughly in line with other companies in terms of our total costs,” Haas said, “In any case, customers are willing to pay for a premium product. We are not going to compete on price because of the quality of the product.”....
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