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Investing.com - Coinbase Global (NASDAQ:COIN) reported a significant revenue increase for the fourth quarter of 2024, surpassing analyst estimates as the cryptocurrency exchange benefited from higher trading volumes and increased crypto asset prices.
The company's total revenue for the quarter reached $2.27 billion, up 88% from the previous quarter and exceeding the analyst consensus of $1.87 billion.
Transaction revenue, which forms the bulk of Coinbase's income, soared 172% quarter-over-quarter to $1.6 billion.
Subscription and services revenue grew 15% to $641 million, driven by higher crypto asset prices and growth in staking, custody, and USDC assets.
Coinbase reported a net income of $1.3 billion for the quarter, which included $476 million in pre-tax gains on its crypto asset investment portfolio.
"2024 was a strong year for crypto and for Coinbase - our revenue more than doubled to $6.6 billion, net income was $2.6 billion, and we generated $3.3 billion of Adjusted EBITDA," said Brian Armstrong, CEO of Coinbase.
The company's balance sheet strengthened to $9.3 billion at the end of the fourth quarter, up $1.1 billion from the previous quarter.
In its first quarter, Coinbase expects to post transaction revenue of approximately $750 million through February 11, with subscription and services revenue projected to be between $685 million and $765 million.
Analysts at Barclays (LON:BARC) noted that Coinbase executives struck an "unsurprisingly" upbeat tone given the strength of the earnings, "with management outlining broad product and geographic ambitions." CEO Brian Armstrong in particular said the crypto industry was entering a "golden age," citing hopes that a "regulatory overhang" weighing on the stock was lifting.
U.S. President Donald Trump has been a recently outspoken backer of digital assets, saying he would oversee a transformation of the country into the "crypto capital of the planet." The price of Bitcoin and other crypto assets shot up after his election victory in November, although sentiment has been somewhat dented recently by a perceived slow rollout of crypto-friendly initiatives since Trump's inauguration in January.
The Barclays analysts added that the next catalyst for the stock will likely be "political" or "regulatory" and "may take some time to emerge."
Shares in Coinbase were lower in extended hours trading on Friday.
(Senad Karaahmetovic contributed reporting.)
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Coinbase fourth-quarter revenue surges 88%, beats expectations