Coinbase disappoints with quarterly figures - stock under pressure

Despite nearly doubling its revenue, the largest US cryptocurrency exchange, Coinbase Global, fell short of Wall Street expectations, leading to a drop in its stock price. Total revenue rose to $1.21 billion but fell short of analysts' forecasts, which had anticipated $1.25 billion. Net income was also lower than expected, at $75 million compared to the projected $112.2 million. In the same period last year, the company reported a loss of $2.3 million. A change in accounting led to a pre-tax loss of $121 million in the most recent quarter. As CFO Alesia Haas emphasized, despite missing expectations, all financial targets were met, including positive net income and adherence to spending forecasts. Additionally, the workforce grew by 5% in the last quarter, and a $1 billion share buyback program was approved. According to a letter to shareholders, Coinbase expects subscription and service revenues between $505 and $580 million in the current quarter. In October, transaction revenues amounted to $190 million. Haas mentioned in an interview that increasing volatility ahead of the elections could significantly impact the crypto markets. Compared to the second quarter, revenues fell by 18% as cryptocurrency prices stagnated or declined after Bitcoin reached its peak in March. Many retail investors withdrew, but the recovery of the Bitcoin price in October could lead to the return of investors. The future remains uncertain, especially as Coinbase faces a lawsuit from the Securities and Exchange Commission from last year. The results of the US elections and the next government's stance on cryptocurrency could also have a significant impact. Although Coinbase's shares have risen by about 27% this year, they lag behind Bitcoin's 70% gain over the same period. The stock fell approximately 3% in late trading on Wednesday.