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The foremost crypto exchange in the United States, <a href="https://bitcoinist.com/coinbase-scores-big-ex-uk-minister-joins-council/" target="_blank" rel="noopener nofollow">Coinbase</a>, released its earnings report on February 15th. As expected, there were major takeaways from the financial report, highlighting the crypto company’s performance in the fourth quarter of last year. 
<h2 id="coinbase-s-trading-volume-exceeds-expectations">Coinbase’s Trading Volume Exceeds Expectations</h2> 
Coinbase maximalist Coinbase Duck noted in an X (formerly Twitter) <a href="https://x.com/CoinbaseDuck/status/1758243019080323085?s=20" target="_blank" rel="noopener nofollow">post</a> how the crypto exchange defied expectations in the fourth quarter of 2023. Coinbase recorded $170.6 billion in spot trading volume, exceeding the estimated $168. 
Specifically, a considerable influx of retail investors accounted for 18% of the total spot trading volume against the estimated 16% that <a href="https://www.newsbtc.com/coinbase/bitcoin-etfs-boosts-coinbase-coin-shares-as-jpmorgan-upgrades-rating/" target="_blank" rel="noopener ">the crypto exchange was projected</a> to record. The return of these retail investors is believed to have been partly due to the <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-crosses-35000/" target="_blank" rel="noopener ">resurgence that Bitcoin</a> and the broader crypto market experienced towards the end of the year.&nbsp; 
Meanwhile, consumer transaction revenue ($492.5 million) was way below the estimate of $570.9 million. However, Coinbase Duck noted that this wasn’t necessarily bad, as some investors started using advanced trading. 
In a <a href="https://www.sec.gov/Archives/edgar/data/1679788/000167978824000019/shareholderletterq42023.htm" target="_blank" rel="noopener nofollow">letter</a> to its shareholders, the crypto exchange also revealed that some existing users traded significantly higher volumes, which could have necessitated the move to advanced trading.&nbsp; 
Coinbase also recorded a total operating expense of $838 million, which happened to be below the projected estimate of $878 million. Specifically, the crypto exchange did a great job in its transaction expenses, recording an expense of $126 million compared to the estimate of $163 million.&nbsp; 
However, the company’s sales and marketing expenses ($106 million) exceeded the estimate of $90 million. Coinbase <a href="https://www.sec.gov/Archives/edgar/data/1679788/000167978824000019/shareholderletterq42023.htm" target="_blank" rel="noopener nofollow">revealed</a> that this growth was “primarily driven by higher seasonal NBA spending, higher performance marketing spending due to strong market conditions, and increased USDC reward payouts due to growth in on-platform balances.” 
<h2 id="coinbase-had-a-profitable-fourth-quarter">Coinbase Had A Profitable Fourth Quarter</h2> 
Coinbase recorded a net income of $273 million, beating the estimate of $104 million. Interestingly, going by figures from its <a href="https://www.sec.gov/Archives/edgar/data/1679788/000167978824000019/shareholderletterq42023.htm" target="_blank" rel="noopener nofollow">Shareholder letter</a>, the fourth quarter of 2023 was the only one in the year in which the crypto exchange didn’t record a loss for its net income. Meanwhile, the company also recorded its largest net revenue during that period. 
Coinbase suggested that the excitement around the <a href="https://bitcoinist.com/evaluating-performance-bitcoin-etfs-since-launch/" target="_blank" rel="noopener nofollow">Spot Bitcoin ETFs</a> and the expectations of more <a href="https://bitcoinist.com/bitcoin-bull-market-glassnode/" target="_blank" rel="noopener nofollow">favorable market conditions in 2024</a> had contributed to its success in Q4 of 2023. Coinbase is a <a href="https://www.newsbtc.com/coinbase/coinbase-custody-head-departs-as-crypto-giant-prepares-for-bitcoin-etf-services/" target="_blank" rel="noopener ">primary custodian</a> for most Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT). 
Meanwhile, the crypto exchange earned $1.13 per share, beating the forecast of $0.43. This is without the crypto exchange accounting for the FASB change, which Coinbase Duck revealed could bring its earnings per Share (EPS) to $2.1.&nbsp; 
<img loading="lazy" decoding="async" class="wp-image-575462 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=860&amp;resize=860%2C410" alt="Coinbase COIN COINUSD" width="860" height="410" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=2372 2372w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=860&amp;resize=860%2C410 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/Coinbase-COIN-COINUSD.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
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4 Surprising Insights From Coinbase’s Earnings, COIN Sees Bullish Surge

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