NASDAQ$COIN

Coinbase Global Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Coinbase demonstrated financial strength with surging transaction revenue and growth in subscription services.

Coinbase reported strong Q4 2023 results, marked by an 83% Q/Q surge in transaction revenue and a 12% Q/Q growth in subscription and services revenue. The company's focus on financial discipline and operational excellence led to a net income of $273 million and Adjusted EBITDA of $305 million for the quarter.

  • Q4 transaction revenue surged 83% Q/Q, driven by volatility and crypto asset prices.
  • Q4 subscription and services revenue grew 12% Q/Q.
  • Net income was $273 million and Adjusted EBITDA was $305 million.
  • Total USD resources ended 2023 at $5.7 billion.

Headline financials

Total Revenue

$954M

Previous: $629M+51.6%
EPS (adj)

$0.51

Previous: -$2.46+120.7%
Capital Expenditures

-$62.7M

Previous: -$814K-7598.9%
Net Income

$273M

Previous: -$557M+149.1%
Operating Income

$116M

Previous: -$555M+120.8%
Gross Profit

$954M

Previous: $546M+74.7%
Stock-Based Comp

$164M

Previous: $431M-62.0%

Revenue & EPS history

Coinbase · Revenue · Quarterly

$954M

Q4 2023+51.6%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Coinbase · $317M total across 2 segments · Q3 2023

  • Interest and Finance Fee Income
    $243M+138.2%
  • Blockchain Rewards
    $74.5M+18.6%

Forward guidance

Coinbase anticipates increased expenses in 2024 due to higher stock-based compensation and moderate headcount growth, while remaining focused on generating positive Adjusted EBITDA in all market conditions. For Q1 2024, the company expects subscription and services revenue to be within $410-480 million.

Tailwinds

  • Expect Q1 subscription and services revenue to be within $410-480 million.
  • Focus on generating positive Adjusted EBITDA in all market conditions.
  • Expect sales and marketing expenses to decline Q/Q due to seasonally lower NBA-related spend.
  • New accounting treatment for crypto assets will begin in Q1.
  • Anticipate growth in institutional financing product.

Headwinds

  • Expect total expenses to increase in 2024, primarily driven by higher stock-based compensation.
  • Technology & development and general & administrative expenses are expected to increase modestly Q/Q.
  • Volatility in effective tax rate may continue in 2024.
  • Urge caution in extrapolating transaction revenue results.
  • Achieving the high vs. low end of subscription and services revenue will largely depend on how crypto asset prices trend for the remainder of Q1.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-2.8%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.3%

Avg return

30 days after

32%

8 / 25 earnings

Positive

+20.1%

Q1 2023

Best reaction

-35.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+4.6%-21.0%
Q4 2025+16.5%+16.3%+38.6%
Q3 2025-2.2%-2.8%-17.0%
Q2 2025-16.7%-19.6%-19.4%
Q1 2025-3.6%+27.6%+21.7%
Q4 2024-8.0%-13.2%-38.6%
Q3 2024-18.4%-15.2%+34.8%
Q2 2024-8.9%-13.5%-18.3%
Q1 2024+6.3%+2.0%+7.5%
Q4 2023+12.4%+8.1%+51.1%
Q3 2023+10.3%+14.5%+71.9%
Q2 2023-3.5%-2.6%-13.8%
Q1 2023+20.1%+24.2%+33.1%
Q4 2022-6.2%-10.4%+1.7%
Q3 2022-3.1%-16.3%-21.5%
Q2 2022-4.0%-7.7%-25.4%
Q1 2022-35.7%-18.7%-23.6%
Q4 2019+6.2%+8.3%+4.0%
Q4 2021+2.4%+13.6%+8.1%
Q3 2020-5.9%-3.4%-28.4%
Q3 2021-7.2%-3.1%-25.4%
Q2 2020-4.9%-4.8%-7.9%
Q2 2021-0.7%-6.9%-8.6%
Q4 2020-6.4%-15.2%-15.5%
Q1 2021-8.9%-15.7%-21.0%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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