Shares in Coinbase (NASDAQ:COIN), the largest crypto exchange in the US, jumped considerably higher today following the release of its Q4 and full year 2023 results. The company beat analyst expectations delivering a profit – the first in several years. Currently, Coinbase shares are trading over 15% higher than market close yesterday following the earnings release.
As stated in the Shareholder Letter, Coinbase reported full year net income of $95 million and full year 2023 revenues of $3.1 billion buttressed by $1.4 billion in subscription and services revenue.
Dollar reserves were reported at $5.7 billion, an increase of $217 million, and debt was reduced by 12%.
For the fourth quarter, Coinbase net income was $273 million from $954 million in revenue, a 41% increase versus the same quarter last year.
Coinbase pointed to the fact that it launched Coinbase International Exchange and expanded operations into six new markets.
Looking at Q1 of 2024, Coinbase shared that through February 13, they generated around $320 million of transaction revenue and anticipate Q1 subscription and services revenue to be within a range of $410-480 million.
During the earnings call Brian Armstrong, Coinbase CEO and co-founder, discussed Bitcoin ETFs descibing them as a win-win f or the company. While some had wondered if the flurry of new BTC ETFs would undermine trading activity on the platform, Armsttrong saidthey won 8 out of 11 spot Bitcoin custody agreements. He said there have been seen about $4 billion of net inflows for the entire industry since the Bitcoin ETFs were launched. If Ethereum ETFs are approved, Armstrong said they are in a solid position to capture the custody services for those as well.
While shares of Coinbase are trading near their 52 week high they remain far below its IPO pricing from back in 2021.