Coinbase, a prominent cryptocurrency exchange in the United States, released its financial report for 2023 on February 15, detailing its performance for both the fourth quarter and the full year.
In Q4 2023, Coinbase disclosed a net income of $273 million and an adjusted EBITDA of $305 million. Over the entire year, it reported a net income of $95 million and an adjusted EBITDA of $964 million.
The company experienced substantial revenue growth in Q4 2023, with total revenue reaching $954 million, 41% compared to the previous quarter. Notable increases were seen in transaction revenue, which rose by 83% to $529 million, and subscription and services revenue, which increased by 12% to $375 million.
However, Coinbase’s performance throughout 2023 displayed mixed results. While total revenue amounted to $3.1 billion, indicating a 3% decrease year-over-year, subscription and services revenue surged by 78% to $1.4 billion. Conversely, transaction revenue experienced a significant decline of 36% to $1.5 billion compared to the previous year.
Coinbase also highlighted its efforts to fortify its financial position by reducing debt to 12% and bolstering its USD holdings to $5.7 billion, comprising $5.1 billion in cash and cash equivalents and $576 million in USD Coin (USDC).
The company’s consolidated balance sheet revealed assets totaling $207 billion, primarily consisting of $203 billion in current assets. Additionally, Coinbase disclosed holding nearly $450 million worth of crypto assets.
In terms of global expansion, Coinbase underscored its growing international presence, having onboarded over 100 institutions to its international exchange, launched in May 2023. It noted that 80% of crypto trading activity occurs outside the US.
Coinbase also highlighted its institutional engagement, boasting that by Q4 2023, it had onboarded one-third of the top 100 hedge funds by assets under management. Additionally, it discussed its custodial involvement in eight out of eleven spot Bitcoin ETFs, participation in the Fairshake Super PAC, and its legal battle against Securities and Exchange Commission (SEC) charges.
Looking ahead, Coinbase reported generating $320 million in total transaction revenue in the first half of Q1 2024 but advised against drawing conclusions from these results. It projected Q1 2024 subscription and services revenue to range between $410 and $480 million, anticipating an increase in total expenses for 2024.
Coinbase stock (COIN) experienced a 3.3% increase on February 15 and a 12.8% increase after hours, reaching $165.67 as of 11:44 p.m. UTC.