The company posted record user numbers, reversing an earlier decline
Coinbase also showed signs it is diversifying its revenue base
Coinbase defied analyst predictions on Thursday by announcing it made nearly $2.5 billion in revenue last quarter, while its monthly active user base swelled to 11.4 million.
The revenue figure was the highest ever for Coinbase, coming in well above the $1.97 billion consensus estimate, while the user figure, also a record, reversed a recent decline that saw the company’s user base drop to 7.4 million in Q3.
Coinbase posted of profits of $840 million last quarter, which was double the previous one, but shy of the record $1.6 billion it made in the second quarter of last year.
The impressive numbers were driven no doubt by record high crypto prices last October and November, when Bitcoin nearly hit $70,000, and the frantic trading that ensued. They are unlikely to be repeated given the bear market that has characterized 2022 so far.
Also notable in the Coinbase earnings are that the company over $200 million of the company’s revenue came from non-trading sources such as staking and lending. While that still amounts to less than 10% of Coinbase’s overall revenue, it suggests the company is finally diversifying away from the trading fees on which it has long relied—and which many believe are under pressure as a result of commission free platforms like Robinhood.
In its letter to shareholders, Coinbase touted the growth of Web3, DeFi and NFTs, suggesting they will help power further growth for the company and the overall crypto industry.
This story will be updated with more details shortly.
