On November 3, Coinbase reveals its revenue report for the third quarter of 2022.
As investors exit the cryptocurrency market, Coinbase reports a loss.
Following the announcement, the Coinbase stock price plummeted.
Fell short of analysts' estimates and resulted in a larger-than-expected loss.
As traders and retail investors fled the crypto market due to the continuous adverse trend, revenue fell more than 50% year on year. Financially, the company lost $545 million, but it had made a profit of nearly $400 million the previous year.
According to Coinbase's investor letter, "stronger macroeconomic and crypto market headwinds, as well as trade volume shifting overseas, have all had a major impact on transaction revenue."
Throughout the year, the number of Coinbase users has fallen. In the third quarter, the company claimed 8.5 million monthly active users, up from 9 million in the previous quarter and 9.2 million in the first quarter.
As per reports, analysts predicted 7.54 million. Coinbase predicts that its monthly user base will be "slightly below" 9 million for the entire year.
At the time of writing, the Coinbase native token COIN price has dropped by 4% in the last 24 hours and is currently trading at $59. In comparison to Bitcoin, the price of Coinbase token has dropped by more than 75% this year.
After making its stock market debut last year, Coinbase doubled its personnel and manpower to keep up with the growing interest in cryptocurrencies and the demand for crypto trading tools.
But in 2022, the trend had shifted substantially, necessitating a drop in headcount. Coinbase announced in June that it would be laying off around 1,000 full-time employees, accounting for 18% of its workforce.
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