US-based cryptocurrency exchange Coinbase saw a 12.7% after-hours stock surge after its Q4 earnings report exceeded expectations.
US-based cryptocurrency exchange Coinbase saw a 12.7% after-hours stock surge after its Q4 earnings report exceeded expectations. Net revenue skyrocketed by 45.2% to $905 million, surpassing analyst predictions of $825 million. The company also swung to a net profit of $273 million, marking its first positive income quarter since Q4 2021. This signifies a significant turnaround from the previous quarter's $2 million net loss.
Transaction revenue remained the primary driver, totaling $529.3 million, with consumer crypto trading surging to $493 million, nearly doubling from Q3. Institutional transaction revenue also witnessed a substantial increase, doubling to $36.7 million. Consumer trading volume saw a massive 164% growth, reaching over $29 billion. Additionally, subscription and services revenue reached $375.4 million, primarily driven by stablecoin and blockchain rewards.
These impressive results fueled a 12.7% jump in Coinbase's share price (COIN) to $186.7 in after-hours trading. This positive sentiment follows an 8-day rally of 41.2%, fueled by investor anticipation of strong financial performance. Analysts like JPMorgan further amplified this optimism with a recent ratings upgrade.
Coinbase itself highlighted its achievement of exceeding Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) targets for 2023, stating: "we generated net income of $95 million and positive Adjusted EBITDA in all four quarters, totaling nearly $1 billion." However, the company cautions of "moderate headcount growth" and potential expense increases in 2024.
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