Coinbase beat analyst estimates after reporting fourth-quarter revenue of $953.8 million, a increase of 41% from the previous quarter, the company said in a statement.
The fourth-quarter revenue for 2023 was also an increase of about 50% when compared to the same period the previous year. Analysts had predicted quarterly revenue of $826.1 million, according to FactSet estimates cited by Yahoo Finance.
“In 2023, we saw our operational rigor pay off,” Coinbase said in an earnings statement. “We achieved our financial goal, launched new innovative products, strengthened our competitive position, and doubled down on our efforts to create momentum for a workable regulatory framework for crypto in the US.”
Coinbase also posted a net income of $273 million for the quarter, compared to a loss of $557 million in the same period of last year.
The company’s shares rose by more than 6% in after hours trading to $177.44 as of 4:30 p.m. ET, according to Yahoo Finance. Coinbase shares have risen by more than 150% in the last year.
Coinbase’s transaction revenue
The cryptocurrency trading platform also generated $529.3 million in transaction revenue during the quarter. That’s up from $288.6 million in the third quarter.
Fourth-quarter “transaction revenue surged 83% Q/Q to $529 million, primarily driven by higher levels of volatility and crypto asset prices,” the company also said in its statement. “We saw a sharp increase in crypto asset volatility … the increases were driven by a variety of factors, principally excitement around Bitcoin spot ETF approvals and broad expectations around improving macroeconomic conditions in 2024.”
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