Coinbase Announces Fourth Quarter and Full-Year Earnings, Revenue Exceeds Expectations

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Coinbase announced its Q4 and full-year earnings on February 13. Benefiting from a strong rebound after the elections, which drove cryptocurrency prices to new highs at the end of last year, Coinbase's Q4 performance exceeded expectations.

Coinbase reported earnings per share of $4.68, more than double the analysts' expectation of $2.11, with Q4 profits reaching $1.3 billion.

In after-hours trading, Coinbase's stock price rose 2% to around $304, with the stock price increasing by 112% over the past year. This article provides a quick overview of the key data from Coinbase's financial report.

2024 Full-Year Revenue Doubles, Q4 Contributes Over 30% of Income

2024 was a strong year for both cryptocurrency and Coinbase, with full-year revenue more than doubling to $6.564 billion, net income of $2.6 billion, and adjusted EBITDA of $3.3 billion. Among these, Q4 revenue reached $2.27 billion, an 88% quarter-over-quarter increase.

In terms of products, Coinbase gained market share in U.S. spot and derivatives trading products in 2024 and added custody, staking, and USDC assets to its product suite, which helped diversify revenue. Additionally, Coinbase further promoted the adoption of products like Base, Coinbase One, Prime Financing, and international expansion.

Trading Revenue

Full-year trading revenue for 2024 was $4 billion, a year-over-year increase of 162%; total trading volume was $12 trillion, up 148% year-over-year. Retail trading volume was $221 billion, a year-over-year increase of 195%; institutional trading volume was $941.2 billion, a year-over-year increase of 139%. In Q4, Coinbase's trading revenue reached $1.6 billion, a 172% quarter-over-quarter increase; trading volume was $439 billion, a year-over-year increase of 185%.

The majority of the year-over-year increase in trading volume for Coinbase in 2024 was due to rising volatility levels in crypto assets (especially in the first and fourth quarters) and an increase in average crypto asset prices. Two main factors supporting these stronger macroeconomic conditions were the launch of Bitcoin ETF products in the first quarter of 2024 and the election of a pro-crypto president and Congress in the fourth quarter of 2024, along with expectations of regulatory clarity, both of which led to increased spot crypto trading activity.

Furthermore, Coinbase's market share in the U.S. spot market grew in 2024. In spot products, Coinbase increased its initial listing efforts (i.e., being the first centralized exchange to launch tokens for trading and custody) and added 48 new spot trading assets.

Additionally, Coinbase successfully expanded its derivatives business in 2024. For example, it added 92 new assets for trading on international exchanges. Although still in the early stages, both retail and institutional derivatives trading volumes and market shares reached historic highs in the fourth quarter.

Retail Trading Revenue

In Q4, retail trading volume was $94 billion, a 176% quarter-over-quarter increase, far exceeding the 126% quarter-over-quarter growth in the U.S. spot market. Retail trading revenue for the quarter was $1.3 billion, a 179% quarter-over-quarter increase. This may be related to Coinbase listing 13 new assets in the fourth quarter, including popular memecoins like PEPE and WlF. Overall, these efforts (along with market conditions) drove a 24% quarter-over-quarter increase in MTU.

Institutional Trading Revenue

In Q4, institutional trading volume was $345 billion, a 128% quarter-over-quarter increase, outperforming the U.S. spot market. Institutional trading revenue for the quarter was $141 million, a 156% quarter-over-quarter increase. The strong performance in the fourth quarter was marked by significant quarter-over-quarter growth in revenue from exchanges and Prime. In addition to strong market conditions, institutional business also showed robust momentum.

Other Trading Revenue

Other trading revenue in Q4 was $6.8 million, a 99% quarter-over-quarter increase, primarily due to increased revenue from Base's sorting services. With increased network demand and rising ETH prices in the fourth quarter, trading volumes continued to grow quarter-over-quarter, and revenue per trade was also higher. The average cost per trade remained below the target of $