In this photo illustration, the Coinbase logo is displayed on a smartphone screen.
Rafael Henrique | SOPA Images | Lightrocket | Getty Images
Coinbase reported user numbers that topped analysts’ estimates even as third-quarter revenue missed estimates and the cryptocurrency exchange had a wider-than-expected loss. The stock popped in extended trading.
Here’s how the company did:
Earnings: Loss of $2.43 per share, adjusted, vs. loss of $2.40 per share as expected by analysts, according to Refinitiv.
Revenue: $590 million, vs. $654 million as expected by analysts, according to Refinitiv.
Revenue plummeted more than 50% from a year earlier as traders turned away from cryptocurrencies. The company’s financials turned south, resulting in a loss of $545 million after Coinbase generated a profit of over $400 million a year earlier.
“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” Coinbase said in its investor letter.
The stock has lost more than three-quarters of its value this year due to a plunge in crypto prices couples with a retreat from the riskiest equities. Bitcoin, the most popular cryptocurrency, is down more than 70% from its all-time high in Nov. 2021.
Coinbase’s user base has been declining throughout the year. The company said it had 8.5 million monthly transacting users (MTUs) during the third quarter, down from 9 million the prior period and 9.2 million in the first quarter. Analysts were expecting 7.84 million, according to StreetAccount.
For the full year, Coinbase said its monthly user number will be “slightly below” 9 million. The company said it’s “cautiously optimistic” it will operate within the $500 million adjusted “loss guardrail” that it set for the year.
Retail transaction revenue came in at $346.1 million, down from $1.02 billion a year earlier and below the $454.2 million consensus among analysts polled by StreetAccount.
October trading volume was $47 billion, and monthly users through October were roughly in-line with the third-quarter results, according to the filing. Coinbase said that in the fourth quarter “we expect lower trading volume and a similar number of MTUs compared to our Q3 results.”
After its stock market debut last year, Coinbase staffed up to meet surging demand for crypto trading tools and enthusiasm around emerging coins. But momentum completely reversed in 2022, forcing the company to slash headcount. In June, Coinbase said it was eliminating 18% of full-time jobs, translating into more than 1,000 cuts.
Ethereum accounted for 33% of trading volume in the quarter, up from 22% in the prior period, and 31% came from bitcoin. However, only 24% of transaction revenue came from ethereum, while bitcoin accounted for 31%, even with its volume.
In September, ethereum underwent a years-in-the-making upgrade known as the merge, which was designed to cut the cryptocurrency’s energy consumption by more than 99%.
Executives will discuss the results on a conference call starting at 5:30 p.m. ET.
On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.
Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.
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The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.
The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.
These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.
The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.
Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:
Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.
In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.
The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.
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Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.
The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.
During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.
Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.
The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.
Kia’s new EV4 is now testing in the US
Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.
The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.
Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).
Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.
The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.
Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.
We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?
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