The Coinbase logo is displayed on a smartphone with a stock market percentage background.
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Common cases Thursday reported exceeding expectations Fourth quarter results And the biggest quarterly revenue in three years, reinforced by a massive post-election rally that pushed cryptocurrency prices to new highs after a new high late last year.
The stock rose 2% in expansion trading.
According to a survey by an analyst at LSEG, the company reported this in the fourth quarter compared to Wall Street’s expectations:
- Earnings per share: $4.68 vs. $1.81 Expected
- income: $2.27 billion vs. $1.88 billion
Coinbase, which operates the largest cryptocurrency market in the U.S., reported net income of $1.3 billion, or $4.68 per share, compared with $273 million, or $1.04 per share a year ago.
It also had revenue of $2.3 billion, compared with $953.8 million a year ago in the same period. Transaction revenue more than doubled from last year to $1.56 billion, beating analysts’ estimated at $1.29 billion, according to StreetAccount.
Total transaction volume was US$439 billion, up 185% year-on-year. Consumer transaction volume increased by 224% from the same period a year ago, while institutional transaction volume increased by 176%.
“Most of the growth in transaction volume is driven by higher crypto asset volatility (especially in the first and fourth quarters) and higher average crypto asset prices,” the company said in its shareholder letter. “Based on these Two major factors for stronger macroeconomic factors are the launch of Bitcoin ETF products in Q1’24, as well as the 24-year-old elections in the fourth quarter, and the relevant expectations for regulatory clarity – Both expectations lead to both expectations. The company also said: “In crypto trading activities at elevated locations.” ”
First quarter outlook
Coinbase reported that it had generated $750 million in transaction revenue before February 11. Transaction revenue is expected to be net income as a percentage of net income in the quarter.
Coinbase said it is working to diversify its revenue stream from transactions. As of the fourth quarter, transactions accounted for 68.5% of its total revenue, most of which came from retail merchants.
Revenue from its subscription and services business, including Stablecoins, Staking, Custody and its Coinbase One products, is expected to be between $685 million and $765 million this quarter.
CFO Alesia Haas told CNBC USDC Stablecoin that the company is issued by Circle and has a revenue-sharing agreement with Coinbase that is ready to grow in the fixed post-legislative world.
She said: “We can drive utilities, and in this case we can drive more trading pairs on USDC on its own platform, which drives liquidity and the more liquid you have in any asset , can drive more adoption.”
Coinbase also hopes USDC will increase sales and marketing expenses by a quarter in the first quarter.
