The exchange reported a quarterly profit of $273.4 million.
It generated a transaction revenue of $529 million, a surge of 84 percent.
California-headquartered Coinbase (Nasdaq: COIN) has reported a profit of $273.4 million or $1.04 per share in the fourth quarter of 2023, beating an expected loss of expected loss of 1 cent per share, according to LSEG data. It was the first quarterly profit of the crypto exchange since 2021.
For comparison, the exchange generated a loss of $2 million in the third quarter of 2023 and a loss of $557 million in the last three months of 2022, showing a massive recovery.
The market quickly reacted to the solid numbers as the value of publicly listed shares of the crypto exchange jumped 14.2 percent in after-hours trading. Coinbase shares are still trading at a heavy discount from its listing price in April 2021.
Revenue Receives a Boost
The profit for the three months between October and December was generated on revenue of $953.8 million, which also exceeded the analysts’ expectation of $826.1 million. The figure elevated 41 percent quarter-over-quarter.
Furthermore, the transaction volume surged 84 percent quarter-over-quarter to $529 million, primarily driven by the volatility and demand for cryptocurrencies. Revenue from its subscription services reached $375.4 million, an increase from the previous quarter’s $826.1 million.
The quarterly demand surged when the market anticipated the approval of Bitcoin exchange-traded funds (ETFs) in the United States. The securities market regulator approved the much-awaited instrument in January.
“ETFs have just been net positive for the industry and additive to Coinbase,” said Alesia Haas, the Chief Financial Officer at Coinbase.
Solid Forecasts
The crypto exchange is expected to generate better results in the ongoing first quarter 2024. It has already generated about $320 million in transaction revenue until February 13. From the subscription and services unit, the exchange is expecting to generate between $410 million and $480 million.
Meanwhile, the legal battle between Coinbase and the Securities and Exchange Commission is ongoing. The exchange is now strengthening its presence in the overseas markets, particularly in Europe, with multiple new licenses.
“Coinbase has always taken a long-term approach focussing on building in a compliant manner, even when it wasn’t the popular choice. Many of our competitors cut corners and broke laws to get big fast, and we’ve seen how that strategy played out,” Coinbase’s CEO, Brian Armstrong, said during the earnings call.
California-headquartered Coinbase (Nasdaq: COIN) has reported a profit of $273.4 million or $1.04 per share in the fourth quarter of 2023, beating an expected loss of expected loss of 1 cent per share, according to LSEG data. It was the first quarterly profit of the crypto exchange since 2021.
For comparison, the exchange generated a loss of $2 million in the third quarter of 2023 and a loss of $557 million in the last three months of 2022, showing a massive recovery.
The market quickly reacted to the solid numbers as the value of publicly listed shares of the crypto exchange jumped 14.2 percent in after-hours trading. Coinbase shares are still trading at a heavy discount from its listing price in April 2021.
Revenue Receives a Boost
The profit for the three months between October and December was generated on revenue of $953.8 million, which also exceeded the analysts’ expectation of $826.1 million. The figure elevated 41 percent quarter-over-quarter.
Furthermore, the transaction volume surged 84 percent quarter-over-quarter to $529 million, primarily driven by the volatility and demand for cryptocurrencies. Revenue from its subscription services reached $375.4 million, an increase from the previous quarter’s $826.1 million.
The quarterly demand surged when the market anticipated the approval of Bitcoin exchange-traded funds (ETFs) in the United States. The securities market regulator approved the much-awaited instrument in January.
“ETFs have just been net positive for the industry and additive to Coinbase,” said Alesia Haas, the Chief Financial Officer at Coinbase.
Solid Forecasts
The crypto exchange is expected to generate better results in the ongoing first quarter 2024. It has already generated about $320 million in transaction revenue until February 13. From the subscription and services unit, the exchange is expecting to generate between $410 million and $480 million.
Meanwhile, the legal battle between Coinbase and the Securities and Exchange Commission is ongoing. The exchange is now strengthening its presence in the overseas markets, particularly in Europe, with multiple new licenses.
“Coinbase has always taken a long-term approach focussing on building in a compliant manner, even when it wasn’t the popular choice. Many of our competitors cut corners and broke laws to get big fast, and we’ve seen how that strategy played out,” Coinbase’s CEO, Brian Armstrong, said during the earnings call.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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