By Davit Kirakosyan
Coinbase (NASDAQ:COIN) shares soared more than 7% after-hours despite the company’s reported Q3 results, with EPS of ($2.43) coming in worse than the consensus estimate of ($2.36). Revenue was $590.34 million, missing the consensus estimate of $654.85 million.
Q3 transaction revenue declined 44% quarter-over-quarter to $366 million, driven by lower trading volume. Subscription and services revenue grew 43% sequentially to $211 million, driven by higher interest income.
Monthly Transacting Users (MTUs) were 8.5 million in Q3, a modest decline of 0.5 million or 6% compared to Q2. At the end of Q3, Assets on Platform were $101 billion, up 5% quarter-over-quarter, primarily driven by net inflows from customers during the quarter as well as the increase in end-of-quarter crypto prices.
Fiscal 2022 Annual Average MTUs are expected to be slightly below 9.0 million. Average Transaction Revenue Per User (ATRPU) is expected to be around $20. Subscription and Services Revenue is expected to be more than $700 million. The company expects growth in subscription and services revenue to continue as a result of the interest rate environment.