Cryptocurrency exchange Coinbase (COIN) has issued better-than-expected fourth-quarter earnings though its user base continues to decline.
Coinbase reported a Q4 loss of -$2.46 U.S. per share, which was better than the loss of -$2.55 U.S. a share expected on Wall Street, according to Refinitiv data.
Revenue in the quarter amounted to $629 million U.S. versus $590 million U.S. that was anticipated by analysts.
While the earnings results were better than forecast, Coinbase’s Q4 revenue was down nearly 75% from a year earlier as the global downturn in cryptocurrency trading continues to weigh on the company.
Additionally, Coinbase said that its user base declined to 8.3 million monthly transacting users (MTUs) during the fourth quarter, down from 8.5 million in the previous third quarter.
Trading volume on Coinbase’s exchange fell 9% to $145 billion U.S. during Q4 from the previous quarter.
For the current first quarter of 2023, Coinbase forecast subscription and services revenue of $300 million U.S. to $325 million U.S., as well as restructuring expenses of $150 million U.S.
Coinbase has undertaken two rounds of layoffs since last June to cutback on spending and preserve cash. The exchange cut 20% of its workforce last month, following an 18% headcount reduction last summer.
Coinbase warned that its business could also be impacted going forward by regulatory actions from the U.S. Securities and Exchange Commission (SEC), which has been intensifying its focus on cryptocurrencies this year.
Coinbase’s stock has declined 65% over the past year to now trade at $62.07 U.S. per share
