Shares in the financial technology firms Coinbase Inc. and Block Inc. both fell in late trading today despite each company reporting better-than-expected earnings and revenue in their latest quarter.

For the second quarter that ended June 30, Coinbase reported an adjusted loss of 42 cents per share on revenue of $707.9 million. Analysts had expected an adjusted loss of 76 cents on revenue of $629 million.

Monthly transacting users, those that make at least one transaction per month, fell by 19% year-over-year, to 7.3 million, versus an expected 7.88 million. Remaining users were also using Coinbase to trade far less often, as the company’s consumer trading volume dropped 70%, to $14 billion, and institutional trading volume fell 54%, to $78 billion. Subscription and services revenue came in at $335 million, ahead of an expected $300 million, transaction expenses came in at 16%.

Bitcoin was the most popular cryptocurrency traded on Coinbase, accounting for 40% of trading volume, up from 31% in the same quarter of last year. Ethereum came in at 23% and other crypto assets at 38%.

“These last few quarters have been challenging and invigorating alike, but by strengthening our financial health, we are well positioned to generate the resources we need to keep investing as we build the future of crypto and help drive regulatory clarity to update the financial system,” Coinbase said in a letter to shareholders.

For its fiscal third quarter, Coinbase said that it expects subscription and services revenue of at least $300 million. Coinbase shares were down just shy of 1% in late trading.

For its second quarter, Block reported adjusted earnings before interest, taxes, depreciation and amortization of 39 cents per share, three cents higher than the figure expected by analysts, on revenue of $5.53 billion versus an expected $5.1 billion.

Gross profit came in at $1.87 billion, up 27% year-over-year, driven by Block’s Cash App seeing growth of 37% to $968 million, and the profit from Square growing 18%, to $888 million. Operating income was a loss of $132 million, but adjusted operating income came in at $25 million.

Block expects 21% growth in its third quarter on adjusted operating expenses of $1.55 billion. For the full year, the company expects adjusted earnings of $1.5 billion on an adjusted operating income of $25 million. Shares in Block were down almost 6% in late trading.

Photo: Coinbase