Coinbase obliterates projections as crypto trading surge drives 172% increase in transaction revenue – News

Coinbase Global Inc. impressed investors today, as the latest boom in cryptocurrency trading helped the company obliterate Wall Street estimates in its fiscal fourth quarter.

For the quarter that ended on Dec. 31, Coinbase reported adjusted earnings per share of $4.68, up from $1.04 in the same quarter of 2023, on revenue of $2.3 billion, up 88% year-over-year. Analysts forecasting Coinbase figures were not even close, as they had been expecting adjusted earnings of $1.36 on revenue of $1.59 billion.

Investors, however, apparently anticipated the upside, bidding up Coinbase’s share 8% in regular trading before the earnings announcement. Shares declined about 1.5% in extended trading.

Transaction revenue in the quarter rocketed 172%, to $1.6 billion, and subscription and services revenue rose 15%, to $641 million. Coinbase saw stable coin revenue grow 31% year-over-year, to $226 million, Blockchain Rewards revenue grew 39%, to $215 million, and custodial fee revenue grow 36%, to $43 million.

Reflecting a growing interest in cryptocurrencies, particularly since the election of President Trump in November, Coinbase saw trading volume of $439 billion in the quarter, up 188% year-over-year. Within that figure, institutional investment trading volume rose 128%, to $345 billion, and consumer trading volume jumped 176%, to $94 billion.

Total operating expenses through the quarter came in at $1.2 billion, up a modest 19% — modest, at least, next to the increases in revenue.

For its full fiscal year 2024, Coinbase reported adjusted earnings per share of $9.48, up from just 37 cents per share in 2023, on revenue of $6.56 billion, up 111% year-over-year.

Referring to the current cryptocurrency market as the “dawn of a new era for crypto,” Coinbase said in a shareholder letter that “crypto’s voice was heard loud and clear in the U.S. elections and the era of regulation via enforcement that crippled our industry in the U.S. is on its way out.”

Though Coinbase does not usually give set outlooks given the volatility of cryptocurrency markets, the company did say that as of Feb. 11, it had generated about $750 million in transaction revenue and expects first-quarter subscription and services revenue to be between $685 million and $765 million. Transaction expenses are projected to remain in the mid- to high teens as a percentage of net revenue, while technology, development and general administrative costs are expected to range between $750 million and $800 million, including $190 million in stock-based compensation.

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