On November 10th, Beijing time, Coinbase announced its third-quarter financial report. The author has summarized the key data in the financial report, organized as follows.
1. Global spot trading volume of cryptocurrencies fell by 37% in the third quarter compared to the second quarter, and the total trading volume of Coinbase was US$327 billion, a year-on-year decrease of 29%. Among them, institutional transaction volume accounted for 72%, which was 234 billion U.S. dollars, a decrease of 26.2% from the previous month.
2. In the third quarter, certified users increased to 73 million, and retail monthly transaction users (mtu) were 7.4 million, a decrease of 1.4 million or 16% from the second quarter.
3. The third quarter created a net income of 1.235 billion U.S. dollars, and the net income exceeded 1 billion U.S. dollars for three consecutive quarters. This includes $1.09 billion in transaction revenue and $145 million in subscription and service revenue. Net profit and adjusted pre-tax profit were US$406 million and US$618 million, respectively, a sharp drop of 39.2% and 74.7% from the second quarter.
4. Subscription and service revenue increased by 41% in the third quarter, reaching 145 million US dollars. The growth of subscriptions and services indicates that encryption is entering the practical phase.
Blockchain rewards revenue was US$81.5 million, an increase of 109% over the second quarter. The growth is mainly driven by Stakinq and ETH 2.
Custody fee income was 31.5 million U.S. dollars, basically the same as in the second quarter. There are two main factors affecting the custody fee income in the third quarter. First, Bitcoin and cryptocurrency prices were lower on average in the third quarter than in the second quarter. Second, the hosting solution received a net inflow of hundreds of millions of dollars. In the third quarter, custody support was added for 19 new assets.
Revenue from profitable activities in the third quarter totaled $15.2 million, a decrease of 10% from the previous quarter.
In the third quarter, about 28% of retail mtu participated in at least one other product. In addition, 49% of retail mtu are using non-investment products such as Staking, Eam and CoinbaseCard.
5. As of the end of the third quarter, there were approximately 2.8 million users earning income through encrypted assets, mainly through shareholding.
6. In the third quarter, 30 new trading assets and 19 new custody assets were added. As of the end of the third quarter, a total of 103 asset transactions and 158 asset custody were supported.
7. In the third quarter, the transaction volume from Bitcoin, Ethereum and other crypto assets accounted for 19%, 22% and 59%, respectively. Compared with the second quarter (24%, 26% and 50%), “other” The proportion of the trading volume of encrypted assets in the category has risen significantly.
8. In the future, integration with legal payment channels will continue to be added to make it easier for more users to enter the crypto economy. At present, there are fiat currency payment channels in more than 90 countries. Many of these were added in the third quarter.
9. Total operating expenses in the third quarter were US$1 billion, a decrease of 25% from the second quarter. Compared with the previous quarter, it was mainly due to lower other operating expenses and transaction costs.
Transaction expenses in the third quarter were US$197.3 million, a 41% decrease year-on-year.
Technology and development expenses in the third quarter were $356.3 million, an increase of 22% over the second quarter, mainly driven by recruitment to support product innovation and platform infrastructure work.
Sales and marketing expenses in the third quarter were $105.4 million, a 46% decrease from the second quarter.
Administrative expenses in the third quarter were $242.6 million, consistent with the level in the second quarter, and were mainly driven by personnel-related costs and customer support investments.
Other operating expenses in the third quarter were US$118.5 million, a decrease of 58% from the second quarter. Other operating expenses mainly include the cost of encrypted assets used to complete customer transactions during transaction downtime.
10. Compared with the end of September, the total market value of cryptocurrencies in October has increased by about 35%. The retail mtu and total transaction volume in October were US$11.7 million and US$186 billion, respectively. The October trend predicts that the retail mtu and total transaction volume in the fourth quarter will be higher than those in the third quarter.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-did-coinbases-third-quarter-earnings-report-say/
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