Coinbase Swings to $719M Q3 Profit, But $715M Is a Non-Cash Crypto Gain
COIN is trading near its 52-week low of $139.11 (10.0% above the low).
Summary
Coinbase reported Q3 net income of $719 million, or $2.51 a diluted share, against analyst expectations of a $0.15 loss. The headline number is misleading: $715 million of it is mark-to-market gains on crypto assets held on the balance sheet, leaving adjusted net income of just $78 million. Revenue came in at $1.22 billion, flat from Q2 and down 35% year over year, with transaction revenue of $590 million beating the roughly $527 million estimate and subscription and services at $570 million. Prediction markets were the standout, with annualized revenue above $200 million and daily active traders up more than 60% from the prior quarter. Shares closed down 1.1% at $160.59 before the release and were little changed after hours, still more than 55% below the 52-week high of $361.40.
At the time of this announcement, COIN was trading at $152.98 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $42.4B. The 52-week trading range was $139.11 to $361.40. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Bloomingbit.