On February 13, Coinbase reported a remarkable revenue of $2.3 billion for the fourth quarter of 2024, translating to adjusted earnings per share of $4.68, a significant increase from $1.04 in the same quarter of 2023.
This quarterly revenue marks an impressive 88% growth year-over-year, resulting in a net income of $1.3 billion for the period.
For the full year, Coinbase announced a revenue of $6.6 billion, a net income of $2.6 billion, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $3.3 billion.
Our Q4 and FY 2024 financial results are now live. pic.twitter.com/R5LuW7pwI9
— Coinbase ️ (@coinbase) February 13, 2025
Coinbase Eclipses Expectations
The exceptional revenue report exceeded analyst predictions, which estimated earnings of $1.36 on revenue of $1.59 billion.
Coinbase derives a substantial portion of its profits from transaction fees that are above industry averages, with transaction revenue for the quarter surging 172% to $1.6 billion, accounting for nearly 70% of total revenue. This surge was primarily fueled by a 45% increase in the crypto market over the three-month period.
Subscription and services revenue also saw a boost, rising 15% to $641 million, while stablecoin revenue grew 31% year-over-year to $226 million. Blockchain Rewards revenue increased by 39% to $215 million, and custodial fee revenue grew by 36% to $43 million.
Executives at Coinbase, including CEO Brian Armstrong, are optimistic, suggesting that the crypto sector is entering a golden age, transitioning from a niche asset class to a prominent component of mainstream financial infrastructure.
“It’s the dawn of a new era for crypto. Crypto’s voice was heard loud and clear in the US elections, and the era of regulation via enforcement that crippled our industry in the US is on its way out.”
The firm has plans to expand its international business in 2025, focusing on growth in subscription and services revenue, particularly in retail staking. Additionally, Coinbase aims to establish USDC as the leading stablecoin, leveraging network effects and compliance advantages.
COIN Stock Reaction
In response to the earnings announcement, Coinbase shares surged 8.4% to $298 before settling just below $294 in after-hours trading, according to Google Finance.
Year-to-date, COIN has seen a 20% increase, outperforming crypto markets, which have declined by 2.5% since January 1. Over the same time frame last year, Coinbase shares have surged 112%, surpassing crypto market gains of 69% within that period.
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
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