Coinbase's stock shed 13% in after-hours trading after the company reported revenue of $1.3 billion. That was below Wall Street's projection of $1.56 billion.
Coinbase "entered Q3 with softer crypto market conditions, driven by low volatility and declining crypto asset prices," the company said in a letter to shareholders. The report appears to reflect the market conditions encountered by Robinhood, which also experienced a drop in revenue largely due to a decline in crypto trading.
"As our year-to-date results have clearly demonstrated, our business is volatile," Coinbase said. "Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the cryptoeconomy and our ability to serve users through our products and services. We encourage our investors to take this point of view."