Coinbase Global, Inc. (COIN) Q4 2024 Earnings Summary

Executive Summary

• Coinbase delivered a breakout quarter: Q4 net revenue rose 88% sequentially to $2.20B, net income reached $1.29B ($4.68 diluted EPS), and Adjusted EBITDA was $1.29B, propelled by spot trading strength and diversified subscription/services .
• Transaction revenue surged 172% Q/Q to $1.56B on total trading volume of $439B; subscription and services rose 15% Q/Q to $641M, with strong blockchain rewards and custodial fees offsetting a 9% Q/Q decline in stablecoin revenue due to lower effective rates and new ecosystem participants .
• Q4 exceeded prior guidance ranges on key items: subscription/services revenue came in at $641M vs $505–$580M; sales & marketing and T&D+G&A ran slightly above guidance; transaction expenses stayed at 14% of net revenue as guided .
• Management emphasized new regulatory tailwinds (SAB 121 repeal; accelerated policy momentum) and product scale (derivatives, Base L2, Coinbase One, Prime Financing), positioning 2025 for broader utility and market share gains .

What Went Well and What Went Wrong

• What Went Well

  • Trading-led surge: Consumer transaction revenue jumped 179% Q/Q to $1.35B as MTUs increased ~24% to 9.7M and nearly half of Q4 trading customers were new or resurrected .
  • Diversification momentum: Subscription/services hit $641M (+15% Q/Q), with blockchain rewards (+39% Q/Q to $215M) and custodial fees (+36% Q/Q to $43M) benefiting from higher crypto prices and AUC inflows (Q4 AUC $220B) .
  • Institutional strength: Institutional transaction revenue rose 156% Q/Q to $141M on $345B trading volume and all-time high Prime Financing balances; derivatives reached new highs and listings expanded .
  • Quote: “We reached an all-time high for both U.S. spot and global derivatives market share in Q4… 2025 is looking very good.” — Brian Armstrong .

• What Went Wrong

  • Stablecoin revenue declined 9% Q/Q to $226M, as lower effective interest rates and new ecosystem participants offset USDC market cap and on-platform balance growth .
  • Operating expenses rose 19% Q/Q to $1.238B, led by transaction expenses (+85% Q/Q) and higher variable marketing/policy spend; sales & marketing increased 37% Q/Q to $226M .
  • Net income included $476M of pre-tax unrealized gains on crypto asset investments (after-tax $357M), highlighting volatility-related non-operating impacts on GAAP profitability .

Financial Results

Segment breakdown – Transaction Revenue

Subscription & Services components

KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic posture: “We reached an all-time high for both U.S. spot and global derivatives market share in Q4… 2025 is looking very good.” — Brian Armstrong .
• Utility focus: “We’re moving with haste to integrate crypto payments across our entire suite… solidifying Base as the #1 chain for building.” — Brian Armstrong .
• Balance sheet/optionalities: “Our USD resources grew to $9.3B… provides capacity for acquisitions… share or debt repurchases.” — Alesia Haas .
• Disclosure change: “We early adopted SAB 122… no longer reporting safeguarded customer assets/liabilities on balance sheet; reinstated Assets on Platform.” — Alesia Haas .

Q&A Highlights

• Market share durability: Management expects durable share gains via asset additions, UX stability, and effective marketing; Q1 off to strong start .
• Derivatives monetization: Current focus is liquidity/volume; fees expected to mature competitively over time as scale grows .
• Cohort behavior: New users driven by new listings and first-time crypto adoption; resurrected users reengage on volatility; Coinbase One users show deeper multi-product engagement .
• Policy priorities: Token classification/market structure and stablecoin frameworks; potential strategic Bitcoin reserve; “bill of rights” for self-custody/use .
• S&M outlook range: Wider due to volatile marketing opportunities and USDC rewards sensitivity to balances and market conditions .

Estimates Context

• Wall Street consensus EPS and revenue estimates via S&P Global were unavailable at the time of this report due to provider rate limits. As a result, we could not quantify beats/misses vs consensus for Q4 2024. Values would be retrieved from S&P Global if accessible.

Key Takeaways for Investors

• Trading-led breakout underscores operating leverage to volatility/price levels, with diversified S&S providing ballast; momentum likely carries into early Q1 2025 (transaction revenue ~$750M through Feb 11) .
• Subscription/services diversification is intact despite stablecoin revenue rate headwinds; blockchain rewards and custody (ETF-driven AUC inflows) are robust .
• Derivatives and international expansion are multi-year growth vectors, with intention to integrate perps into Prime and raise market share/liquidity across venues .
• Expense discipline remains a watchpoint: transaction costs scale with volume; S&M/T&D+G&A can flex higher with opportunity/policy efforts; ranges remain wide into Q1 .
• Regulatory tailwinds (SAB 121 repeal; legislative momentum) reduce structural overhangs and broaden TAM (payments, tokenized assets), benefiting Coinbase’s crypto-native positioning .
• Non-GAAP treatment: Adjusted EBITDA revised in 2024; GAAP net income impacted by unrealized crypto investment portfolio gains/losses—investors should normalize across cycles .
• Near-term trading: Elevated volumes, asset pricing, and new listings (including memecoins) are catalysts; medium-term thesis centers on utility/payments, ETFs/Prime, and Base-driven ecosystem growth .