Coinbase Shares Surge After It Crushes Wall Street Expectations

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.

“We’re
really
pleased
with
the
results,”
Anil
Gupta,
vice
president
of
investor
relations
at
Coinbase
told
CoinDesk
in
an
interview.
“Operational
rigor
that
we
set
forth
early
in
the
year
really
paid
off
over
the
course
of
2023.”

Read
more:



Coinbase
to
Report
Strong
Earnings,
ETF
Benefits
May
Surprise
Wall
Street,
Analysts
Say

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.

“The
ETFs
are
really
a
win-win
for
Coinbase,
I
think
we’re
already
starting
to
see
that
play
out
on
the
platform,”
Gupta
said.
The
crypto
exchange
provides
custodial
services
to
8
out
of
the
ten
spot
bitcoin
ETFs,
making
it
a
key
player
in
the
business.

“Custody
is
obviously
a
relatively
small
part
of
the
business
today
but
the
great
news
about
ETFs
is
that
it’s
invigorating
the
entire
sector
…
so
you’re
seeing
a
lot
of
activity
and
engagement
on
the
platform,”
he
said.

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
13%
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%.

“Our
stock
performance
has
sometimes
been
better,
sometimes
lower,
sometimes
in
line,
I
think
the
markets
will
figure
that
out,”
Gupta
said.

Read
more:



Coinbase
Upgraded
to
Neutral
Ahead
of
Earnings
at
JPMorgan
as
Shares
Surge

UPDATE
(Feb.
15,
2023,
22:00
UTC):

Adds
comments
from
Anil
Gupta,
vice
president
of
investor
relations
at
Coinbase.