Coinbase beats Q4, shares up 14%
There’s been record revenues seen at Coinbase driving better-than-expected earnings. The world’s largest listed crypto exchange says earnings per share of $1.04 up from estimates of just 2 cents
Revenues at $953.8 were above last year's and better than analysts expectations of $826mln. It benefitted from a market rebound during the fourth quarter, as transaction revenues surged for both consumers and institutional buyers. Adjusted EBITDA -- earnings before interest, taxes, depreciation and amortization -- increased 69% from the prior quarter to $305 million. Analysts had predicted the surge in crypto prices in late 2023 would translate to higher trading volume for the company and ultimately higher revenues.
(AI Video Summary)
Coinbase
Coinbase, the biggest cryptocurrency platform in the world, has had a very successful quarter, according to their latest financial report. Their earnings per share were at 4 cents, surpassing expectations of just 2 cents per share. Revenues also exceeded estimates, reaching $953.8 million compared to the projected $826 million. One of the main reasons for this success is the significant growth in transaction revenues, which soared to $529 million - an 83% increase from the previous quarter. As a result, Coinbase achieved a net income of $273 million, marking their first positive quarter in 2023. Their adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also rose by 69% to $305 million, making it the fourth consecutive positive adjusted EBITDA for the company.
Coinbase share price
Coinbase's stock performance has closely followed their financial success, with shares increasing after the close of the previous session. In fact, their stock price reached its highest point since April 1, 2022, at $189.33. However, it is important to note that it is still below the IPO price of $225 from April 2021. Nevertheless, Coinbase has benefited greatly from the recent surge in Bitcoin and other cryptocurrencies. This surge was amplified by the authorization of a Bitcoin ETF, which had a positive impact on Coinbase's performance.
Overall, Coinbase's impressive earnings and improved revenues demonstrate their ability to take advantage of the increasing demand for cryptocurrencies. The fact that they had a positive quarter and consistently achieved positive adjusted EBITDA indicates their resilience in a volatile market. So, despite the ups and downs of the cryptocurrency market, Coinbase has managed to flourish and prove its strength.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Live prices on most popular markets
- Forex
- Shares
- Indices
