While Coinbase posted decent results with increased turnover and net profit, the crypto exchange's share price fell. In question, results not having at least matched the ambitious estimates of analysts.
Coinbase reports financial results below analysts' estimates
This Wednesday, Coinbase revealed its financial results for the 3rd quarter of 2024. With a turnover of $1.21 billioncertainly up 78% over one year, the exchange signs a quarter below analysts' initial expectations which anticipated $1.25 billion.
In the same way, the company's net profit is $75 million, almost $40 million less than the estimates made earlier in the year. Faced with these results, Coinbase stock fell about 5%bringing the stock price to just under $212.
💡Find out how to invest in cryptocurrencies on Coinbase
Alesia Haas, financial director of the exchange, wanted to comment on these results, stating that “ which is super important here, is that Coinbase has achieved all of its financial goals “. At the same time, the company's Board of Directors approved a share repurchase program that provides up to $1 billion for its common shares.
Also, in a document given to its shareholders, the company expects to generate revenue between $505 million and $580 million for the 4th quarter thanks to its subscriptions and services. For comparison, in the 3rd quarter, Coinbase had managed to record $556 million in revenue.
Coinbase: register on the most famous crypto exchange in the world
The ambition to support the cryptocurrency industry, whatever the outcome of the US presidential elections
At present, Coinbase still faces litigation with the Securities and Exchange Commission (SEC) which has been going on for several years now. The American financial watchdog filed a complaint against the company, which also took legal action.
Also, regarding the American presidential elections, the company decided not to position itselfshowing all its desire to work in favor of the adoption of cryptocurrencies. Coinbase spoke on this subject alongside its earnings announcement :
The voices of tens of millions of American cryptocurrency owners – many in key states – formed an undeniable voting bloc and created momentum on both sides in favor of legislation open to cryptocurrencies. […] Beyond Election Day 2024, we are willing to work with either administration and believe the chances of pro-crypto legislation are better than ever.
👉 Also in the news – Coinbase CEO Brian Armstrong wants the next SEC chair to apologize to the crypto industry
Finally, Alesia Haas referred to Uptober, the rise of the crypto market during the month of Octoberjust a few days before the US presidential elections scheduled for November 5.
“ As we enter the 4th quarter, we see an increase in volatility as the elections approach. Cryptocurrency markets are evolving very quickly, and we must remain focused in this decisive period, » she concludes.
Cryptoast Academy: Don’t waste this bull run, surround yourself with experts
Source: Coinbase
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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