Coinbase Global Inc COIN Chief Financial Officer Alesia Haas is expecting the flow of headwinds to continue or even get stronger in the coming year after a third-quarter revenue miss.
What Happened: Haas said Thursday, “We are preparing for 2023 with a more conservative bias with more headwinds,” said Haas in an interview Thursday, reported Bloomberg.
“We are preparing and we are developing plans that we will be more conservative next year. These headwinds could persist or possibly intensify.”
Haas reportedly said Coinbase could face a probable scenario of “sustained low revenue for multiple years.”
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Why It Matters: The price of major cryptocurrencies has crashed this year. Bitcoin BTC/USD is down 57.6% since 2022 began and Ethereum’s ETH/USD price has eroded 59.4% in a similar period.
Coinbase’s transaction revenue was $366 million in the third quarter, a decline of 44% sequentially. The company lost 1.8 million transacting users quarter-over-quarter amid a decline in cryptocurrency prices.
The company said it will narrow its products and focus on delivering customer experiencing and reducing its operating expenses.
Price Action: On Thursday, Coinbase shares rose 4.9% in the after-hours trading to $58.52 after closing 8.1% lower at $55.80 in the regular session, according to data from Benzinga Pro.
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