The largest U.S. crypto exchange beat analyst estimates for both the top and bottom lines, and its shares surged almost 14% in after-hours trading.
Coinbase’s Q4 results benefited from soaring crypto asset prices.
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Posted February 15, 2024 at 5:00 pm EST.
Coinbase handily beat analyst estimates for revenue and earnings for the fourth quarter as the largest crypto exchange in the U.S. benefited from higher levels of volatility and soaring crypto asset prices.
For the quarter, Coinbase reported earnings of $1.04 a share on revenue of $953.8 million, compared to analyst consensus estimates of EPS of $0.02 on revenue of $826.1 million.
Coinbase’s stock price was rising almost 14% to $188.31 in after-hours trading.
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Transaction revenue surged 83% from the third quarter to $529 million in the fourth quarter, while trading volume grew to $154 billion, almost double the $76 billion in the third quarter.
For the year, Coinbase reported revenue of $3.1 billion and net income of $95 million. The company had previously said it expected to deliver positive adjusted EBITDA for 2023.
Stablecoin revenue, generated from interest on its reserves of Circle’s USDC, amounted to $171.6 million, down slightly from $172.4 million in the third quarter. Total subscription and services revenue for the quarter, which includes stablecoin revenue, amounted to $375.4 million.
Anticipation of the approval of spot bitcoin ETFs drove the price of bitcoin higher starting at the end of last year, a trend which has continued into this year.
The company said it had garnered roughly $320 million in transaction revenue through Feb. 13, and expected to generate Q1 subscription and services revenue of between $410-480 million.
Coinbase will host its fourth-quarter earnings call at 5:30 p.m. ET.
