Coinbase Sees 8% Jump in Shares After Posting Strong Q4 Earnings

Coinbase, a leading U.S. cryptocurrency exchange, saw its shares surge 8.44% to $298.11 on Thursday, February 13, following the release of its Q4 2024 earnings report. The company reported its strongest quarterly revenue in three years, beating market expectations.

Strong Q4 Earnings Report

According to the report, Coinbase generated $2.3 billion in revenue, representing a 138% increase from 2023. This surpassed the $1.88 billion estimate from LSEG analysts. The company’s net income reached $1.3 billion, with earnings per share coming in at $4.68, exceeding both the $2.11 forecast by FactSet and the $1.81 expected by LSEG.

Coinbase attributes its growth to rising trading activity and a shift in the regulatory landscape. The company’s CEO noted,

“Zooming out, the last few months have demonstrated a sea change in the regulatory environment, unlocking new opportunities for Coinbase and the crypto industry.”

Revenue Breakdown

Transaction revenue hit $1.6 billion, up 172% from the previous quarter, while subscription and services revenue grew to $641 million. However, stablecoin transaction fees dropped 9% quarter-over-quarter to $226 million.

Future Plans and Opportunities

Coinbase is optimistic about its future, referring to the latest regulatory shifts as the “dawn of a new era for crypto.” The company plans to focus on building and expanding its services, including:

  • Boosting stablecoin adoption
  • Growing its layer-2 network, Base
  • Expanding crypto payments

“At the same time you will see us working hard to bring more people onchain through products like our leading layer 2 platform Base, SmartWallet, and Coinbase Developer Platform.”

Challenges Ahead

Despite the strong Q4 earnings, challenges remain. Coinbase will need to balance the drop in stablecoin transaction fees with new partnerships and products. The company sees an “unprecedented opportunity” ahead, but this will depend on favorable market conditions and regulations.

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