On the other hand, Coinbase added that its monthly transacting users plummeted to 7.4 million in the 3rd quarter from 8.8 million in the 2nd quarter. However, it is still higher than 6.1 million in the same period last year.
“As our year-to-date results have clearly demonstrated, our business is volatile,” the company said in its shareholder letter. “Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the cryptoeconomy and our ability to serve users through our products and services. We encourage our investors to take this point of view.”
Nonetheless, 3rd quarter subscription and services revenue surged by 41% to $145 million against $103 million in the 2nd quarter.
“Despite the quarterly miss, we point to a number of positive quarterly metrics: Both trading volumes and [monthly transacting users] exceeded Street’s expectations,” Wedbush analysts said in a note, while giving Coinbase stock an outperform rating.
Meanwhile, Coinbase is also actively diversifying its services from launching an NFT platform to derivatives trading.
