The San Francisco-based company said revenue rose 24% year-on-year to $2b. However, that figure was down about 10% from the previous quarter and fell short of analyst estimates of $2.1b, according to LSEG data.
Transaction revenue remained a key contributor, increasing 17.3% to $1.26b. Meanwhile, revenue from the firm’s growing subscription and services business jumped 37% to $698.1m.
Coinbase marks these assets to market each quarter, exposing its earnings to the volatile swings in cryptocurrency prices. On an adjusted basis, the company reported a net income of $526.6m, or $1.94 per share, compared to $2.53 a year ago. Operating expenses surged 51% to $1.3b, driven by heavier marketing spend and losses on held crypto assets. The stock dipped around 2% in after-hours trading and is down 17% so far this year.
Net income for the quarter plunged 94% to $66m, or 24 cents per share, as the firm booked losses related to the declining value of its crypto holdings.
Chief financial officer Alesia Haas said many customers are now engaging with a broader range of services beyond trading. “We are gaining share, we are driving utility,” she said. “We are seeing a healthy maturation of the products.” Coinbase also announced the acquisition of Deribit in a deal valued at $2.9b. The move signals the company’s ambition to expand deeper into the crypto derivatives market, a sector where Deribit handled nearly $1.2t in volume last year.
Despite the earnings miss, the platform logged its second-highest monthly transacting user count in company history.