Coinbase Global Inc. on Thursday narrowed its quarterly loss and reported revenue above Wall Street expectations.
Coinbase
COIN,
lost $79 million, or 34 cents a share, in the quarter, compared with a loss of $430 million, or $1.98 a share, in the year-ago quarter. Revenue dropped to $773 million, from $1.2 billion a year ago.
Analysts polled by FactSet expected Coinbase to report a loss of 76 cents a share on sales of $628 million.
Shares of the crypto trading platform initially rallied more than 5% in the aftermarket Thursday, but gave up those gains and ended the extended session down 1%.
“This quarter represented a turning point in our drive towards building a
company that is more efficient and financially disciplined; a company that is
able to do more for less,” Coinbase said in a letter to shareholders accompanying results.
“We reduced costs, doubled down on operational excellence and risk management, and continue to drive product innovation and regulatory clarity.”
See also: Why Coinbase’s stock is falling amid a judge’s latest ruling about crypto
The Securities and Exchange Commission sued Coinbase in June, charging the company with operating an unregistered national securities exchange.
In the letter Thursday, Coinbase said it is “in a stronger business position” despite its problems with the SEC, and they are “an opportunity to continue pushing for
a clear rule book in the US for crypto regulations.”
Shares of Coinbase have rallied nearly 160% this year, far outpacing the S&P 500 index
SPX,
which is up about 18%.
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