Cryptocurrency exchange Coinbase revealed that its third-quarter revenue fell short of analyst expectations and suffered a bigger-than-expected loss.

As retailers and investors abandoned the cryptocurrency market due to the ongoing downtrend, revenues were down more than 50% from the previous year.

Financially, the company suffered a loss of $545 million, but initially made a profit of about $400 million over the previous year.

Coinbase said in a letter to investors:

Transaction yields were significantly impacted by strong macroeconomic and cryptocurrency headwinds, as well as trading volume moving offshore.

The number of users on Coinbase has decreased over the course of the year.

The company reported 8.5 million monthly active users in the third quarter, compared to 9 million users in the previous quarter and 9.2 million users in the first quarter.

According to the Street Account, analysts were expecting just 7.5 million users.

According to Coinbase, the number of monthly users for the entire year will be just under 9 million.

At market close, COIN stock was down 8% but rose 5% to $58.65 in after-hours trading.

Coinbase’s share price is down more than 75% this year, compared to Bitcoin’s drop of nearly 56% on the year.

Coin Stock:

Since its stock market debut last year, Coinbase has increased its staff and manpower to keep up with the growing interest in cryptocurrencies and the need for cryptocurrency trading tools.

But in 2022, the trend changed dramatically, requiring the company to reduce its workforce.

Coinbase announced in June that it would cut more than 1,000 full-time jobs, or 18% of its workforce.

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