Coinbase (COIN) missed fourth-quarter earnings forecasts on Thursday, thanks to weaker trading activity and lower crypto asset prices.
The US-based crypto exchange posted total revenue of $1.78 billion against estimates of $1.83 billion. Adjusted EPS of $0.66 was well below the consensus of $0.86.
Total transaction revenue of $983 million was below forecasts of $1.02 billion and down from $1.046 billion in the third quarter and $1.556 billion in the fourth quarter a year ago.
Subscription revenue of $727.4 million was down from $746.7 million in the prior quarter and up from $641.1 million in the prior year.
As of February 10 of the first quarter, the company had transaction revenue of approximately $420 million. This led to subscription revenue for the full quarter of between $550 million and $630 million.
“We remain optimistic about the long-term trajectory of the crypto industry,” Coinbase said. “Cryptocurrencies are cyclical, and experience tells us that they are never as good or as bad as they seem. While asset prices can be volatile, an undercurrent of technological change and adoption of crypto products continues beneath the surface.”
Shares are up modestly in after-hours trading, but fell 7.9% during the regular session, extending year-to-date declines to 40%.
