Loading...
•
Sep 30, 2024
Coinbase Q3 2024 Earnings Report
Coinbase's Q3 2024 results reflected solid performance amidst softer market conditions, driven by revenue diversification and progress in crypto utility and regulatory clarity.
Key Takeaways
Coinbase reported a solid Q3 2024 with $1.2 billion in total revenue and $75 million in net income. The company achieved its 7th consecutive quarter of positive Adjusted EBITDA, reaching $449 million. Growth in staking, on-platform USDC, and custody helped diversify revenue, while advancements in stablecoin integration and the Base network contributed to crypto utility.
Total revenue was $1.2 billion, a 17% decrease Q/Q.
Net income reached $75 million, inclusive of $121 million in pre-tax losses from crypto asset investments.
Adjusted EBITDA was $449 million, marking the 7th consecutive quarter of positive adjusted EBITDA.
The company ended the quarter with $8.2 billion in $USD resources, up $417 million Q/Q.
Coinbase
Coinbase
Forward Guidance
Coinbase anticipates Q4 subscription and services revenue to be within $505-$580 million. Technology & development and general & administrative expenses are expected to range from $690-$730 million. Sales and marketing expenses are projected to be between $170-$220 million.
Positive Outlook
- The company updated its vesting schedule for new awards to achieve linear expense recognition.
- Future stock-based compensation expenses related to annual grants will be primarily driven by our employee population rather than our vesting schedule.
- Sales and marketing expenses are expected to be in the range of $170-$220 million, primarily driven by USDC rewards expense related to higher on platform balances and higher brand spend, partially attributable to our NBA partnership.
- Transaction revenue for October is estimated to be approximately $190 million.
- The company will host a conference call to discuss the results for the third quarter 2024 on October 30, 2024 at 2:30 pm PT.
Challenges Ahead
- Q4 range reflects certain headwinds, including an observed 10% decline in the average price of Ethereum in October as compared to Q3 average and interest rate cuts reflecting market expectations.
- Variable marketing costs can fluctuate greatly depending on USDC assets on platform, market trends, and the opportunities available that meet our customer cost of acquisition targets.
- Estimating October total transaction revenue will be approximately $190 million, caution is urged in extrapolating these estimated results.
- We expect technology & development and general & administrative expenses to be in the range of $690-$730 million.
- We expect Q4 subscription and services revenue to be within $505-$580 million.