By Yasin Ebrahim
Investing.com -- Coinbase (NASDAQ:COIN) reported Tuesday fourth-quarter results that were better than feared as cost cuts helped ease the blow from a drop in cryptocurrency trading.
Coinbase Global Inc shares were up 3% in after-hours trading following the report.
Coinbase reported a loss of $2.46 a share on revenue of $629.1 million, topping Wall Street expectations for a loss of $2.51 a share on revenue of $588.2 billion.
The beat on the top line comes even as the cryptocurrency exchange cut costs amid falling trading volumes.
Operating expenses fell to $1.18B in Q4 from $1.58B in the prior-year period.
Total transaction revenue declined 12% quarter-on-quarter to $322M in Q4, driven by lower Q4 total trading volume.
Q4 total trading volume was $145B, down 9% sequentially in Q4, with total consumer trading volume down 23% in Q4 and institutional trading volume down 6% quarter-on-quarter in Q4.
There was a pick-up in subscription and services revenue, which climbed 34% to $282.8M in Q4.
The quarterly results arrive following a tumultuous year for cryptocurrencies, in which sentiment was rocked by the collapse of $LUNA in the second quarter of 2022, and the bankruptcy of FTX in Q4’22, Coinbase said.