Coinbase Shares Surge After Beating Fourth-Quarter Profit Estimates

Coinbase (COIN) beat analysts’ estimates for fourth-quarter earnings and revenue, as the U.S.-based cryptocurrency exchange benefitted from soaring crypto prices.

It earned $1.04 per share, beating the average analyst estimate of $0.02 per share, according to FactSet data. Revenue of $953.8 million also exceeded the analyst forecast of $826.1 million, the company said in a statement.

Crypto prices surged for much of 2023, but the rally intensified in the fourth quarter as high hopes for bitcoin ETFs – which were approved last month – sparked renewed interest in digital assets.

That seemed to translate into more business at Coinbase. It saw 100% more trading volume during the quarter versus the third quarter. Fourth-quarter volume amounted to $154 billion, ahead of the estimate of $142.7 billion.

Coinbase also posted 2023 adjusted Ebitda of $964 million after previously forecasting “meaningful” positive adjusted Ebitda generation for the year. The company expects to generate about $410 million to $480 million in subscription and service revenue in the first quarter of 2024, after already earnings about $320 million through Feb. 13.

Shares of the crypto exchange were up about 8% in the post-market trading after rising about 3% during the regular session. COIN shares had fallen about 4% this year, even as the price of bitcoin (BTC) surged about 23%.