Coinbase Global (NASDAQ: COIN) stock soared in the extended trading Thursday following the release of its quarterly earnings report. The largest U.S. cryptocurrency exchange beat Wall Street’s expectations with remarkable earnings and revenue figures, attributed to a notable increase in transaction volumes.
Coinbase Global (COIN), the digital asset exchange, reported adjusted earnings of $1.04 per share for the fourth quarter. This marks a significant improvement from the loss of $2.46 per share reported in the same quarter last year. Analysts had anticipated earnings of merely 2 cents per share. Total revenue nearly reached $954 million, marking a 41% sequential increase and surpassing the Wall Street consensus estimate of $826 million.
The quarterly performance saw a significant uptick thanks to a 64% surge in transaction revenue compared to the previous year. This surge was fueled by the buzz surrounding the approval of spot Bitcoin ETFs and optimistic projections for macroeconomic improvements in 2024. The company anticipates its first-quarter subscription and services revenue, encompassing activities beyond trading, to fall between $410 million and $480 million, surpassing the Street’s estimate of $356.22 million.
Coinbase also addressed investor worries about diminishing market share due to the rising competition in the cryptocurrency trading arena from competitors such as Robinhood Markets (HOOD) and Fidelity Investments.
Anil Gupta, the firm’s VP of Investor Relations, stated,
“Candidly I think the worries about fee compression have been happening for years, and we haven’t seen it.”
The company reported trading volumes of $154 billion in the fourth quarter, marking a notable increase from the third quarter’s $76 billion. This surpassed analysts’ projections of $142.7 billion.
Coinbase Global (NASDAQ: COIN) Stock Movement
COIN stock soared 14.30% after hours, on top of a 3.30% rise in regular trading. Closing at $165.67 on Thursday, trading volume hit 21,495,305 (21.49 million) shares, far above the usual 13.42 million.
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