Major US crypto exchange Coinbase published its latest financial report on Feb. 15, including fourth-quarter and full-year results for 2023.
For Q4 2023, Coinbase reported a net income of $273 million and an adjusted EBITDA of $305 million. For the full year, it reported a net income of $95 million and adjusted EBITDA of $964 million.
The firm notably saw significant revenue growth in Q4 2023, including
- Total revenue of $954 million, up 41% Q/Q
- Transaction revenue of $529 million, up 83% Q/Q
- Subscription and services revenue of $375 million, up 12% Q/Q
It also saw mixed growth over the entirety of 2023, including:
- Total revenue of $3.1 billion, down 3% Y/Y
- Transaction revenue of $1.5 billion, down 36% Y/Y
- Subscription and services revenue of $1.4 billion, up 78% Y/Y
Coinbase additionally said it has strengthened its balance sheet by reducing debt to 12% and increasing its total US dollar holdings to $5.7 billion. The company’s USD balance appears to include $5.1 billion of cash and cash equivalents plus $576 million of USD Coin (USDC).
Coinbase’s full consolidated balance sheet indicates that the firm has $207 billion of assets, primarily made up of $203 billion of current assets. Among the various assets not included in the current assets category, Coinbase reported nearly $450 million of crypto assets held.
Coinbase discussed global activities and more
Coinbase emphasized its growing international presence. The company said that it has onboarded more than 100 institutions to its international exchange, which went live in May 2023. It also noted that 80% of crypto trading occurs outside of the United States.
The firm described its institutional activities. It highlighted that, as of Q4 2023, it had onboarded one-third of the top 100 hedge funds by assets under management.
Coinbase also discussed its custodial role in 8 of 11 spot Bitcoin ETFs, involvement in the Fairshake Super PAC, and attempts to dismiss Securities and Exchange Commission (SEC) charges.
Discussing future trends, Coinbase reported that it had generated $320 million in total transaction revenue in the first half of Q1 2024 but “[urged] caution in extrapolating these results.” Separate from transaction revenue, Coinbase predicted that it will see Q1 2024 subscription and services revenue between $410 and $480 million. The firm added that it expects total expenses to increase in 2024.
Coinbase stock (COIN) is up 5.29 points (3.3%) on Feb. 15 and up 21.21 points (12.8%) after hours. The share price was $165.67 as of 11:44 p.m. UTC.
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