Coinbase (COIN) missed fourth-quarter profit forecasts on Thursday, thanks to weaker trading activity and falling crypto asset prices.
The US-based crypto exchange recorded total revenue of $1.78 billion, compared to an estimated $1.83 billion. Adjusted EPS of $0.66 was well below the consensus of $0.86.
Total transaction revenue of $983 million was lower than 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 of the first quarter, the company recorded transaction revenue of approximately $420 million. It generated a full quarter’s subscription revenue of between $550 million and $630 million.
“We remain 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. Although asset prices can be volatile, beneath the surface an undercurrent of technological change and adoption of crypto products continues.”
Shares are slightly higher after hours, but fell 7.9% during the regular session, extending year-to-date declines to 40%.
