Circle beats earnings and revenue estimates on soaring USDC transaction volume

Circle’s CRCL$75.22·Market Closed net income for continuing operations of $226 million grew 5% year-over-year to $226 million in the third quarter, the company announced on Wednesday.

The stablecoin issuer also revealed a 5% reduction in its workforce, for which it attributed a $9.1 million restructuring cost in its third-quarter earnings.

Circle said the layoffs were “designed to better align our organizational structue with our operating model.”

The New York-based firm comfortably beat analysts’ estimates on adjusted earnings per share (EPS), with EPS of 84 cents, some 127% higher than the forecast of 37 cents.

Circle also beat analysts’ estimates on revenue of $778 million by more than 11%. Total revenue and reserve income for the quarter increased 17% to $865 million, thanks in part to a 49% growth in onchain transaction volume to $13.9 trillion for its flagship token USDC.

Some $182 million in Circle’s reveue came from the private presale of ARC, the native token of its Arc blockchain.

The company highlighted the public mainnet debut of Arc, the agreed acquisition of Singaporean payments network Tazapay and a $100 million investment from cryptocurrency exchange Binance as highlights from the quarter.

CRCL shares traded 1.18% lower at $74.33 in pre-market trading, having risen 4.36% to $75.22 on Tuesday.