Coinbase’s net loss in the second quarter of 2023 amounted to $97 million, or $0.42 per share, which significantly surpassed analysts’ expectations of $0.76 per share. However, the company’s stock price dropped by 1% during after-hours trading.

Initially, the stock prices had surged by 9.1%. Since the beginning of the year, Coinbase’s shares have seen an impressive price increase of 156.4%.

During the same period in 2022, the company had reported a net loss of $1.1 billion, and in the first quarter of 2023, the loss was $78.9 million. This negative trend has continued for the sixth consecutive quarter.

The reduction in the negative financial result was attributed to cost-cutting measures. The company’s total operating expenses decreased by 47.6% year-over-year (from $1.48 billion to $773 million) and by 13% quarter-over-quarter, thanks to investment optimization and staff layoffs.

The net revenue for April-June decreased from the previous year’s $808.3 million to $707.9 million, surpassing the forecast of $628 million. Compared to the previous three months ($772.5 million), the metric also decreased by 8.4%.

The previous growth driver, which was subscription and services, saw a halt in its upward trajectory. Revenues amounted to $335.4 million, down from $361.7 million in the previous quarter and $147.4 million a year ago. This was due to a reduction in interest income from $240.8 million to $201.4 million. The company had earlier warned that this trend would be influenced by a decrease in the market supply of USDC in recent months.

The decline in Coinbase‘s market share in Ethereum staking, following the SEC lawsuit, has not yet impacted the revenue dynamics in this area. In fact, earnings increased from $73.7 million in January-March to $87.6 million. The effects of suspending the service in certain US states will be reflected in the next quarterly report.

Trading fees decreased by 12.7%, dropping from $374.7 million to $327.1 million, though the forecast was $284.7 million. For comparison, in the second quarter of 2022, trading fees were twice as high at $655.2 million.