Coinbase stock fell 15% on November 9 after the exchange posted a lower than expected revenue of $1.31 billion in the third quarter.
Despite the exchange posting a 300% revenue increase from the second quarter, analysts at S&P Capital IQ had projected $1.58 billion in revenue.
The trading volume dropped 29% to $327 billion from the second quarter, with the retail monthly transacting users falling to 7.4 million from 8.8 million in the second quarter. MTUs were 2.1 million in the third quarter of last year.
The net income stood at $406 million against $380 million estimates. Coinbase had $81 million net income in the third quarter of last year and $1.6 billion in the second quarter of this year.
Bitcoin and Ethereum were 19% and 22% of the total trading volumes, respectively, in the third quarter, while other crypto assets accounted for 59%.
Coinbase expects the annual average net transaction revenue per user to top $50 monthly and the average monthly transacting users to range between 8 million and 8.5 million in FY2021. The exchange says that investors should take a long-term view to counter the high volatility.