Coinbase (COIN) missed fourth-quarter earnings forecasts on Thursday, thanks to weaker trading activity and lower crypto asset prices.
The US-based crypto exchange had total revenue of $1.78 billion against estimates of $1.83 billion. Adjusted EPS of $0.66 was well below 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 previous quarter and up from $641.1 million a year earlier.
Through February 10 in the first quarter, the company saw transaction revenue of about $420 million. It guided for full-quarter subscription revenue of $550-$630 million.
“We continue to be optimistic about the long-term trajectory of the crypto industry,” Coinbase said. “Crypto is cyclical and experience tells us that it is never as good or as bad as it seems. While asset prices can be volatile, an undercurrent of technological change and adoption of crypto products continues beneath the surface.”
Shares are modestly higher in after-hours trading, but fell 7.9% in the regular session, extending year-to-date declines to 40%.
