The U.S. crypto exchanges just flexed some serious financial muscle. Their fourth-quarter earnings report is out, and, well, let’s just say analysts might need a new crystal ball.
Business as usual
For the last quarter of 2024, Coinbase raked in $2.3 billion in revenue, and that translates to $4.68 earnings per share, a HUGE jump from the $1.04 they pocketed in the same quarter last year.
Our Q4 and FY 2024 financial results are now live. pic.twitter.com/R5LuW7pwI9
— Coinbase 🛡️ (@coinbase) February 13, 2025
Overall, that’s an 88% year-over-year jump, and also, net income for the period hit $1.3 billion.
For the full year, revenue was $6.6 billion, with a net income of $2.6 billion and an Adjusted EBITDA of $3.3 billion. Quite nice numbers.
They were expecting a decent $1.59 billion in revenue with earnings of $1.36 per share. Coinbase didn’t just meet expectations; it pole-vaulted over them.
And the insolvency rumors/FUD from the social media? The silence is deafening.
Transaction fees are the name of the game
Coinbase makes a killing on those fees, which are a bit higher than other exchanges. Transaction revenue spiked 172% to $1.6 billion.
That’s almost 70% of their total revenue, fueled by the overall crypto market’s 45% growth during those three months. Subscription and services revenue also saw a 15% increase, hitting $641 million.
Stablecoin revenue jumped 31% to $226 million, while Blockchain Rewards revenue grew 39% to $215 million, and custodial fee revenue grew 36% to $43 million.
Stock performance
Coinbase CEO Brian Armstrong and other execs are convinced crypto is entering its golden age, going from a niche thing to mainstream.
Armstrong even stated that crypto had a clear voice in the U.S. elections, and that the era of regulation via enforcement is on its way out.
Looking ahead, Coinbase plans to expand its global reach in this year and pump up subscription and services revenue, especially retail staking.
Plus, they’re determined to make USDC the stablecoin, using network effects and compliance perks.
Investors are clearly happy. Coinbase shares jumped 8.4% to $298, before settling at just under $294 in after-hours trading.
COIN is up 20% since the start of the year, which is awesome considering the crypto markets have actually dipped 2.5%.
And, since this time last year, Coinbase shares have skyrocketed 112%, leaving the overall crypto market’s 69% gain in the dust.
Never been more bullish $COIN. TLDR: Very Bullish Call so far. Ignore after market price.. we are going higher@brian_armstrong in call now: "Crypto going mainstream, Coinbase is going to be the platform that will power many of these companies that integrate with crypto, it's…
— Zach Light 🛡️ (@ZachLight16) February 13, 2025
