Coinbase (Coin) shares have taken a striking after the firm posted a 75% decrease in internet income during the third quarter.

COIN closed Tuesday with a 0.98% gain at a cost of $357.39. However, the release of the leading United States exchange's Q3 report after market shut has coincided with a dip of around 13.10% (at the time of this writing) in after-hours trading.

Coinbase posted revenue of $ane.235 billion in Q3 falling well beneath analyst estimates of $1.614 billion, according to FactSet. The firm's profits totaled $406 million, marking a 74.7% subtract in profit compared to the previous quarter, although information technology was above annotator expectations of $380 million. Coinbase also reported earnings of $1.62 per share, which came in 10% brusk of the FactSet consensus estimate.

Despite the underwhelming operation in Q3, Coinbase said in the report that it had been a "strong quarter" for the firm, pointing toward deeper investor engagement on the platform and the development of new products, such equally its upcoming nonfungible token marketplace. The firm besides emphasized that it is focused on the long term as opposed to quarter-to-quarter:

"Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the crypto economy and our ability to serve users through our products and services. We encourage our investors to take this point of view."

Information technology appears that the frosty relationship between Coinbase and the U.Southward. Securities and Exchange Commission is beginning to thaw.

Coinbase CEO Brian Armstrong first highlighted the firm'south bug with the SEC in September when he revealed that the enforcement body had threatened to sue Coinbase if it launched its USD Coin (USDC) lending plan. Armstrong followed those comments upwardly later that month by stating that the SEC was the only government co-operative that was unwilling to see with the firm.

Nevertheless, Armstrong said on the Q3 earnings call today that he'd had a "very productive" meeting with SEC Chair Gary Gensler concluding week.

The house posted a 41% growth in subscription services revenue of $145 million compared to Q2 via such avenues every bit its Ethereum 2.0 staking program, custodial fee revenues and token rewards. The firm besides noted that its seven.iv one thousand thousand Monthly Transacting Users (MTU) are commencement to "appoint beyond crypto's commencement use instance."

Related: Coinbase launches standalone browser extension for Coinbase Wallet

"Approximately 28% of our retail MTUs both invested and engaged with at to the lowest degree i other production in Q3. Farther, 49% of our retail MTUs engaged with non-investing products such equally Staking, Earn, and Coinbase Card, including 2.8 million users who were earning yield on their crypto assets."

Trading volume on the platform tallied at $327 billion in Q3, down 29% compared to Q2, with institutional investors representing the king of beasts's share of trading with $234 billion, while retail traders accounted for $93 billion.

Ether (ETH) outperformed Bitcoin (BTC) in terms of trading book for the second quarter in a row, with the former totaling 22%, while the latter equated to xix% of total book. "Other crypto avails" deemed for 59% of trading volume, which was upwards 18% compared to Q2.