Coinbase Q3 Earnings Report

As Coinbase reported its third-quarter earnings on Wednesday, the cryptocurrency exchange disclosed that its board of directors has authorized a $1 billion share repurchase program.

> "In October 2024, our board of directors authorized and approved a share repurchase program, which provides for the repurchase of up to $1 billion of our outstanding Class A common stock without expiration," Coinbase stated. "The timing and amount of any repurchases will depend on market conditions."

Coinbase also stated that its balance sheet is "strong," ending the third quarter with $8.2 billion in USD resources, an increase of $417 million from the previous quarter.

The company noted that repurchases would be at its discretion, with no obligation to repurchase any dollar amount or number of shares of its Class A common stock. The program may also be modified, suspended, or discontinued at any time.

In after-hours trading, Coinbase shares were at $203.60 as of 4:32 p.m. ET, reflecting a decrease of 3.8%, according to Yahoo Finance.

Earnings Overview

In general, while Coinbase's net revenue, net income, and Adjusted EBITDA showed year-on-year growth despite lower cryptocurrency prices in 2023, only the net income improved compared to the previous quarter, rising to $75 million from $36 million.

Coinbase reported a net revenue of $1.13 billion in the third quarter, down from $1.38 billion in the previous quarter. Adjusted EBITDA for the period stood at $449 million, compared to $596 million from the last quarter.

One area of improvement was the stablecoin revenue, which increased slightly to $247 million from $240 million in the previous quarter. Corporate interest and other income also saw minor growth.

> "We saw stablecoin pair trading volume grow significantly quarter on quarter. We believe this growth was driven by product updates enabling easier trading for Advanced users," Coinbase mentioned. "While we generate little to no fees on stablecoin trades, increasing adoption of stablecoins, particularly USDC, is central to our strategy."

Outlook Ahead of Elections

Coinbase, which has long sought regulatory clarity in the U.S., adopted a positive and neutral tone as the 2024 presidential election approaches.

> "As we approach the 2024 U.S. elections, it’s clear that crypto has already made its mark. With tens of millions of Americans now owning crypto, their voices are being heard. Both presidential candidates, and politicians across the spectrum, have adopted more favorable positions toward crypto, marking a significant shift from previous years," Coinbase wrote to shareholders.

The company expressed optimism about the future, stating, "Regardless of the election outcome, we are excited to work with either administration in 2025. The odds for meaningful, pro-crypto regulation have never been stronger."