Coinbase reported fourth-quarter results Thursday that came in below Wall Street expectations, as softer trading volumes and weaker crypto prices weighed on performance.
The company posted total revenue of $1.78 billion, missing analyst estimates of $1.83 billion. Adjusted earnings per share were $0.66, falling short of the $0.86 consensus forecast.
Transaction revenue totaled $983 million, below projections of $1.02 billion and down from $1.046 billion in the third quarter and $1.556 billion a year earlier. The decline underscores reduced trading activity during a period of lower digital asset prices.
Subscription and services revenue reached $727.4 million, down from $746.7 million in the prior quarter but up from $641.1 million in the same period last year.
For the first quarter, Coinbase said it generated approximately $420 million in transaction revenue through Feb. 10. The company expects subscription and services revenue to come in between $550 million and $630 million for the full quarter.
Despite the earnings miss, Coinbase struck an optimistic tone. “We continue to be optimistic about the long-term trajectory of the crypto industry,” the company said. “Crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems.”
Shares rose modestly in after-hours trading following the release, though the stock had declined 7.9% during the regular session, extending its year-to-date losses to around 40%.
