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Coinbase Beats Q4 Estimations, Doubles Revenue

Coinbase Global Inc (Nasdaq: COIN) has generated $2.5 billion in revenue in the fourth quarter of 2021. It was a substantial gain from the previous quarter’s $1.2 billion and exceeded analyst estimation of $2 billion.

The adjusted earnings per share came in at $3.32, compared to the street estimates of $1.94.

The revenue was supported by a significant increase in trading volume on the  cryptocurrency exchange  . In the reported Q4, ending on December 31, the trading volume soared to $547 billion, increasing from $327 billion in the third quarter and $89 billion in the same quarter of the previous year.

The average number of monthly transacting users (MTUs) in the final 2021 quarter also touched 11.4 million, jumping from 7.4 million in the previous quarter.

“The sequential increase in retail Trading Volume was driven primarily by higher levels of  volatility  as well as strong consumer interest in a wider variety of crypto assets,” the exchange said.

Cautious Investors

Despite the strong Q4 results, Coinbase‘s share price decreased by almost 4 percent in aftermarket trading. The publicly listed share of the company shed around 30 percent this year and nearly 50 percent since its listing in April 2021.

The investors were mostly cautioned by the crypto exchange’s timid expectations for Q1 of 2022. It is expecting lower subscription and services segment revenues for the ongoing quarter compared to the previous one. Further, it is estimated to end 2022 with annual average retail MTUs of between 5 million to 15 million.

“This wider than normal set of factors results in a wider range of potential outcomes for 2022. Simply put, we have less near-term visibility, and it is currently too early to provide a more precise range,” the exchange added.

Coinbase Global Inc (Nasdaq: COIN) has generated $2.5 billion in revenue in the fourth quarter of 2021. It was a substantial gain from the previous quarter’s $1.2 billion and exceeded analyst estimation of $2 billion.

The adjusted earnings per share came in at $3.32, compared to the street estimates of $1.94.

The revenue was supported by a significant increase in trading volume on the  cryptocurrency exchange  . In the reported Q4, ending on December 31, the trading volume soared to $547 billion, increasing from $327 billion in the third quarter and $89 billion in the same quarter of the previous year.

The average number of monthly transacting users (MTUs) in the final 2021 quarter also touched 11.4 million, jumping from 7.4 million in the previous quarter.

“The sequential increase in retail Trading Volume was driven primarily by higher levels of  volatility  as well as strong consumer interest in a wider variety of crypto assets,” the exchange said.

Cautious Investors

Despite the strong Q4 results, Coinbase‘s share price decreased by almost 4 percent in aftermarket trading. The publicly listed share of the company shed around 30 percent this year and nearly 50 percent since its listing in April 2021.

The investors were mostly cautioned by the crypto exchange’s timid expectations for Q1 of 2022. It is expecting lower subscription and services segment revenues for the ongoing quarter compared to the previous one. Further, it is estimated to end 2022 with annual average retail MTUs of between 5 million to 15 million.

“This wider than normal set of factors results in a wider range of potential outcomes for 2022. Simply put, we have less near-term visibility, and it is currently too early to provide a more precise range,” the exchange added.


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