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Mar 31, 2021
Coinbase Q1 2021 Earnings Report
Coinbase's Q1 2021 results were strong, driven by the crypto price cycle that began in Q4 2020.
Key Takeaways
Coinbase's Q1 2021 saw substantial growth in key metrics, including Verified Users, MTUs, Trading Volume, and Assets on Platform, fueled by high crypto asset prices and volatility. Total revenue reached $1.8 billion, with net income at $771.5 million.
Verified Users exceeded 56 million, including over 8,000 institutions and 134,000 ecosystem partners.
Retail MTUs grew to 6.1 million, more than double compared to Q4 2020.
Trading Volume reached $335 billion, with $120 billion from retail and $215 billion from institutional customers.
Assets on Platform totaled $223 billion, representing 11.3% of the total crypto asset market capitalization.
Forward Guidance
For Q2 2021, Coinbase expects total Trading Volume and MTUs to meet or exceed Q1 results, driven by continued strength in the crypto market and increased investment in sales and marketing. For the full year 2021, Coinbase updated MTU scenarios reflect higher average annual MTU levels based on Q2 quarter-to-date trends.
Positive Outlook
- Total Trading Volume is expected to meet or slightly exceed Q1 Trading Volume.
- MTUs have grown since March 31, 2021.
- Q2 MTUs are expected to be higher than Q1 levels.
- Annual average net revenue per user will exceed historical range.
- Meaningful growth in 2021 driven by transaction and custody revenue based on increasing volumes of institutional onboarding, increased capital allocations to crypto, and increased trading volumes from existing clients.
Challenges Ahead
- Business is inherently unpredictable.
- MTUs, Trading Volume, and therefore transaction revenue currently fluctuate, potentially materially, with Bitcoin price and crypto asset volatility.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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