Coinbase Q4 Earnings Beat Estimates on Higher Trading Volume

Core Insights - Coinbase Global, Inc. reported a significant increase in net operating earnings per share for Q4 2024, reaching $3.39, which exceeded the Zacks Consensus Estimate by 74.7% and represented a more than three-fold increase year over year [1][2] - The company's total revenues for Q4 2024 were $2.3 billion, surpassing the Zacks Consensus Estimate by 21.3% and more than doubling year over year, driven by higher transaction revenues and subscription services [3][10] Financial Performance - Total trading volume in Q4 2024 more than doubled year over year to $439 million, exceeding the Zacks Consensus Estimate of $391 million [3] - Total transaction revenues surged nearly three-fold year over year to $1.56 billion, significantly above the Zacks Consensus Estimate of $1 billion [4] - Subscription and services revenues increased by 70.7% year over year to $641.1 million, driven by higher crypto asset prices and growth in Coinbase One subscribers, beating the Zacks Consensus Estimate of $586 million [5] - Adjusted EBITDA for the quarter was $1.3 billion, nearly four times higher year over year, while total operating expenses rose by 47.6% to $1.2 billion [6] Financial Position - As of December 31, 2024, Coinbase had cash and cash equivalents of $8.5 billion, a 66.2% increase from the end of 2023, while long-term debt rose by 42% to $4.2 billion [7] - Shareholders' equity reached $10.3 billion at the end of Q4 2024, up 63.6% from the previous year [7] Q1 2025 Outlook - Coinbase anticipates subscription and services revenues to grow sequentially, projected to be between $685 million and $765 million [8] - The company expects technology and development expenses to be in the range of $750 million to $800 million, reflecting increased variable expenses due to elevated trading volume [9]