Coinbase Global shares fell on Tuesday, after the company disappointed on third quarter earnings.
The biggest U.S. cryptocurrency exchange earnings for the third quarter came in at $1.62 a share, up from 23 cents a year ago. But they fell short of the $1.77 a share expected by analysts polled by FactSet.
Coinbase reported quarterly revenue of $1.31 billion, in line with analysts’ estimates and more than four times the year-ago quarter’s $315 million.
The company mentioned the volatile nature of its business, and emphasized the importance of long-term investing. “As our year-to-date results have clearly demonstrated, our business is volatile,” the company said. “Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the crypto-economy and our ability to serve users through our products and services.”
Regarding the company’s guidance for the fourth quarter, it said that October trends include higher levels of activity among retail traders who have historically traded more on Coinbase during periods of heightened volatility. “We believe that retail monthly transacting users and total trading volume will be higher in Q4 as compared to Q3,” the company stated.