Gemini's first post-IPO earnings report: Revenue surges 52%, but share price hits record low

On November 11th, according to The Block, Gemini announced its first quarterly financial report after listing. Net revenue in the third quarter was nearly 50 million US dollars, an increase of 52% compared with the previous quarter. Transaction volume reached 16.40 billion US dollars, an increase of 45% compared with the previous quarter, of which institutional transaction volume increased by nearly 50%. Transaction fees exceeded 26 million US dollars, and service revenue was about 20 million US dollars, accounting for nearly 40%, a significant increase from less than 30% in the same period last year.
Gemini's crypto credit card has performed well, opening more than 100,000 accounts, doubling quarterly spending to $350 million, and pledging the balance to $741 million. The company also obtained a European MiCA license, entered Australia in early October, and launched a self-custodial wallet to accelerate its internationalization layout. Gemini has paid off debt and opened a $150 million credit line for credit card receivables, and expects full-year service and interest income to 60 million to $70 million.
However, dragged down by IPO-related stock compensation and marketing expenses, the company's net loss was $159.50 million, or $6.67 per share, and adjusted EBITDA was $52.40 million. After the release of the earnings report, GEMI's share price fell by more than 11% after hours, falling below $15, the lowest since the listing, and investors worried about the expansion of losses.