• Total Revenue: More than doubled to $6.6 billion in 2024.
• Adjusted EBITDA: $3.3 billion, marking two consecutive years of positive adjusted EBITDA.
• Subscription and Services Revenue: Increased 64% year-over-year to $2.3 billion.
• International Revenue Share: Reached 19% in Q4 2024.
• Q4 Total Trading Volume: $439 billion, up 137% quarter-over-quarter.
• Consumer Trading Volume: $94 billion, up 176% quarter-over-quarter.
• Consumer Transaction Revenue: $1.3 billion, up 179% quarter-over-quarter.
• Institutional Trading Volume: $345 billion, up 128% quarter-over-quarter.
• Institutional Transaction Revenue: $141 million, up 156% quarter-over-quarter.
• Subscription and Services Revenue (Q4): $641 million, up 15% quarter-over-quarter.
• Net Income: $1.3 billion in Q4, benefiting from $476 million in pretax gains on crypto asset investments.
• USD Resources: Grew to $9.3 billion by the end of Q4 2024.
• Assets on Platform: $404 billion as of December 31, 2024.
• Q1 2025 Transaction Revenue: Approximately $750 million year-to-date.
• Q1 2025 Subscription and Services Revenue Outlook: Expected to be between $685 million and $765 million.

• Warning! GuruFocus has detected 5 Warning Sign with COIN.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Coinbase Global Inc (NASDAQ:COIN) reported a significant increase in total revenue for 2024, more than doubling to $6.6 billion.
• The company achieved $3.3 billion in adjusted EBITDA, marking two consecutive years of positive adjusted EBITDA.
• Subscription and services revenue grew by 64% year-over-year to $2.3 billion, driven by USDC, staking, and Coinbase One.
• Coinbase Global Inc (NASDAQ:COIN) reached an all-time high for both US spot and global derivatives market share in Q4.
• The company is well-positioned to capitalize on new regulatory tailwinds, enhancing its long-term strategy to be the most trusted and compliant platform.

Negative Points

• The lower interest rate environment and the impact of new USDC ecosystem participants led to a decline in stablecoin revenue by 9%.
• Operating expenses increased by 19% in Q4, driven by higher transaction expenses and increased marketing spend.
• Despite the strong quarter, the company faces challenges in maintaining its market share amidst increasing competition from other platforms.
• The rapid increase in the number of tokens being created presents a challenge for Coinbase Global Inc (NASDAQ:COIN) in managing its listing process.
• The company needs to balance consumer protection with providing access to a broad range of assets, which could complicate its product offerings.

Q & A Highlights

Q: How did the liquidation event in early February affect Coinbase users? A: Alesia Haas, CFO, explained that volatility is inherent in crypto, and the price actions in February were typical. The markets recovered quickly, and Coinbase's retail users are long-term holders. There was no meaningful impact on the business from the February volatility.

Q: With regulatory headwinds shifting to tailwinds, what other promising growth drivers does Coinbase have? A: Brian Armstrong, CEO, highlighted that Coinbase is a multiproduct business with diverse revenue streams. He emphasized the next act for crypto, which includes daily utility beyond trading, international expansion, and potential M&A opportunities. He also mentioned the importance of powering crypto utility across various apps and payments.

Q: What initiatives are now possible under the new regulatory regime? A: Brian Armstrong noted the potential for perpetual futures trading in the US, which could bring significant trading volume onshore. He also mentioned interest in tokenized securities and equities, which could offer benefits like 24/7 trading and real-time settlement. Additionally, he sees more partnership opportunities with traditional financial firms and tech players.

Q: How can Coinbase continue to gain market share despite competition from lower-cost products? A: Brian Armstrong stated that Coinbase's growth in market share reflects the trust people have in the platform. He emphasized that Coinbase aims to grow the overall market rather than compete in a zero-sum game. Alesia Haas added that efforts to add assets, improve user experience, and effective marketing will help Coinbase gain share over the long term.

Q: What are the most important regulatory changes needed for a constructive market for developers and markets? A: Brian Armstrong identified market structure legislation and token classification as crucial for opening up capital flows into crypto. He also emphasized the need for a clear framework for stablecoins and fair access to banking services. Paul Grewal, Chief Legal Officer, added the importance of a functional bill of rights for blockchain activities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.