In this photo illustration, a Coinbase logo is displayed on a smartphone with stock market percentages on the background.
Omar Marques | SOPA Images | Lightrocket | Getty Images
Coinbase Thursday reported better-than-expected fourth-quarter results and its biggest quarterly revenue in three years, strengthened by a raging postelection rally that pushed crypto prices to new high after new high at the end of last year.
The stock rose 2% in extended trading.
Here’s what the company reported for the fourth quarter compared with what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: $4.68 vs. $1.81 expected
- Revenue: $2.27 billion vs. $1.88 billion expected
Coinbase, which operates the largest U.S. marketplace for buying and selling cryptocurrencies, reported net income of $1.3 billion, or $4.68 per share, compared with $273 million, or $1.04 a share, in the same period a year ago.
It also posted revenue of $2.3 billion, compared with $953.8 million in the same period a year ago. Transaction revenue more than doubled from last year to $1.56 billion, and beat analyst estimates of $1.29 billion, according to StreetAccount.
Total trading volume was $439 billion, up 185% year-over-year. Consumer trading volume rose 224% from the same period a year ago while institutional trading volume increased 176%.
“The majority of the Y/Y growth in Trading Volume was driven by higher levels of Crypto Asset Volatility — particularly in Q1 and Q4 — as well as higher average crypto asset prices,” the company said in its shareholder letter. “The two primary factors underpinning these stronger macroeconomic factors were the launch of the bitcoin ETF products in Q1’24, and the election of a pro-crypto President and Congress in Q4’24 and the associated expectation of regulatory clarity—both of which resulted in elevated spot crypto trading activity.”
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