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Dec 31, 2023
Coinbase Q4 2023 Earnings Report
Coinbase demonstrated financial strength with surging transaction revenue and growth in subscription services.
Key Takeaways
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.
Coinbase
Coinbase
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.