The crypto bull market of late 2024 propelled Coinbase to a record-breaking fourth quarter, with revenue reaching $2.27 billion. The company saw explosive growth in transaction volumes, fueled in part by renewed optimism in the regulatory landscape following Donald Trump’s election victory. Net income was $1.3 billion, and the adjusted earnings of $1.3 billion.

According to the company’s report, Coinbase’s Q4 revenue climbed 88% quarter-over-quarter, reaching $2.27 billion. Transaction revenue hit $1.56 billion, a 194% jump compared to the previous year.

Revenue and Trading Volumes

The total trading volume in the quarter surged to $439 billion, reflecting increased investor activity as crypto prices soared. Meanwhile, the company’s subscription and services revenue reached $641 million, benefiting from higher crypto asset prices and growing adoption of services like staking and Coinbase One.

Beyond trading, Coinbase is focusing on expanding crypto’s real-world utility. The company has been strengthening its institutional adoption and international presence while developing new products to drive onchain finance.

Its layer-2 platform, Base, has seen rapid growth, enabling developers to create new financial applications. Additionally, the company is prioritizing stablecoin adoption to facilitate seamless crypto payments for businesses and consumers.

Currently, Coinbase is advocating for clearer regulations in the US and internationally. Progress has been made on securing key licenses globally, while the U.S. is seeing growing momentum for legislation on stablecoins and market structure. The company also scored a legal victory in its ongoing dispute with the SEC, with a court granting its request for an interlocutory appeal in January 2025.

Q1 2025 Outlook

As of mid-February, Coinbase has already generated approximately $750 million in Q1 transaction revenue. The company expects subscription and services revenue to fall between $685 million and $765 million.

Meanwhile, transaction expenses are projected to remain in the mid-to-high teens as a percentage of net revenue, while operating expenses, including technology, development, and marketing, are expected to rise due to increased trading volumes and expansion efforts.

Following the positive results, Coinbase stock saw modest gains in after-hours trading following the earnings report but had already climbed 8.5% earlier in the day after Robinhood also reported strong crypto-related earnings.

Source: Finance Magnates