Coinbase Q4 Earnings: Revenue Beat, Surprise Profit, Crypto Update And More

Coinbase Global Inc COIN reported fourth-quarter financial results Thursday after the market close. Here’s a look at the key metrics from the quarter.

Q4 Earnings: Coinbase reported fourth-quarter revenue of $953.79 million, which beat the consensus estimate of $822.36 million, per Benzinga Pro. The company reported surprise quarterly earnings of $1.04 per share, which easily beat analyst estimates for a loss of 1 cent per share.

Coinbase has now beat analyst estimates on the top and bottom line in four consecutive quarters, according to Benzinga Pro.

Transaction revenue increased 83% quarter-over-quarter to $529 million, primarily driven by higher volatility and crypto asset prices. Subscription and services revenue increased 12% quarter-over-quarter to $375 million.

Bitcoin BTC/USD represented 31% of trading volume and 29% of transaction revenues in the fourth quarter. Ethereum ETH/USD represented 15% of trading volumes and 13% of transaction revenues in the quarter.

“In 2023, our operational rigor paid off. We achieved our financial goal, launched new innovative products, strengthened our competitive position, and double down on our efforts to create momentum for a workable regulatory framework for crypto in the U.S.,” the company said in a letter to shareholders.

Outlook: Coinbase said it would focus on three main priorities in 2024: driving revenue through improving core trading, driving utility in crypto with experiments in payments and driving regulatory clarity for the industry.

Coinbase expects first-quarter subscription and services revenue to be between $410 million and $480 million. The company noted that it had generated approximately $320 million in first-quarter transaction revenue as of Feb. 13.

“We remain focused on generating positive Adjusted EBITDA in all market conditions,” the company said.

Management will hold a question and answer session to discuss its financial results at 5:30 p.m. ET.

Don’t Miss This: Trading Strategies For Coinbase Stock Before And After Q4 Earnings As Bitcoin, Ethereum Soar

COIN Price Action: Coinbase shares were up approximately 150% over a one-year period heading into the print. The stock was up 8.41% after hours at $179.45 at the time of publication, according to Benzinga Pro.

Coinbase Photo by rafapress on Shutterstock