Coinbase obliterates projections as crypto trading surge drives 172% increase in transaction revenue
Coinbase Global Inc. impressed investors today, with the latest boom in cryptocurrency trading seeing the company obliterate anaylsts estimates in its fiscal fourth quarter.
For the quarter that ended on Dec. 31, Coinbase reported adjusted earnings per share of $4.68, up from $1.04 in the same quarter of 2023, on revenue of $2.3 billion, up 88% year-over-year. Analysts forecasting Coinbase figures were not even close, as they had been expecting adjusted earnings of $1.36 on revenue of $1.59 billion.
Transaction revenue in the quarter was $1.6 billion, up 172% year-over-year and subscription and services revenue was $641 million, up 15%. Coinbase saw stable coin revenue grow 31% year-over-year to $226 million, Blockchain Rewards revenue grow 39% to $215 million, and custodial fee revenue grow 36% year-over-year to $43 million.
Reflecting a growing interest in cryptocurrencies, particularly since the election of President Trump in November, Coinbase saw trading volume of $439 billion in the quarter, up 188% year-over-year. Within that figure, institutional investment trading volume was $345 billion, up 128% and consumer trading volume was $94 billion, up 176% year-over-year.
Total operating expenses through the quarter came in at $1.2 billion, up a modest 19% – modest, at least compared to the increases in revenue.
For its full fiscal year 2024, Coinbase reported adjusted earnings per share of $9.48, up from 37 cents per share in 2023, on revenue of $6.56 billion, up 111% year-over-year.
Referring to the current cryptocurrency market as the “dawn of a new era for crypto,” Coinbase said in a shareholder letter that “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 Trump Administration is moving fast to fulfill its promise of making the U.S. the crypto capital of the planet and globally, leaders are taking notice and increasing their attention and investment into crypto,” the shareholder letter added.
While Coinbase does not usually give set outlooks due to the volatility of cryptocurrency markets, the company did say that as of February 11, 2025, it had generated approximately $750 million in transaction revenue and expects first-quarter subscription and services revenue to be between $685 million and $765 million. Transaction expenses are projected to remain in the mid-to-high teens as a percentage of net revenue, while technology, development and general administrative costs are expected to range between $750 million and $800 million, including $190 million in stock-based compensation.