Coinbase (COIN) beat analysts’ estimates for fourth-quarter earnings and revenue, as the U.S.-based cryptocurrency exchange benefitted from soaring crypto prices.
It earned $1.04 per share, beating the average analyst estimate of $0.02 per share, according to FactSet data. Revenue of $953.8 million also exceeded the analyst forecast of $826.1 million, the company said in a statement.
Read more: Coinbase to Report Strong Earnings, ETF Benefits May Surprise Wall Street, Analysts Say
Crypto prices surged for much of 2023, but the rally intensified in the fourth quarter as high hopes for bitcoin ETFs – which were approved last month – sparked renewed interest in digital assets.
That seemed to translate into more business at Coinbase. It saw 100% more trading volume during the quarter versus the third quarter. Fourth-quarter volume amounted to $154 billion, ahead of the estimate of $142.7 billion.
Coinbase also posted 2023 adjusted Ebitda of $964 million after previously forecasting “meaningful” positive adjusted Ebitda generation for the year. The company expects to generate about $410 million to $480 million in subscription and service revenue in the first quarter of 2024, after already earnings about $320 million through Feb. 13.
Shares of the crypto exchange were up about 8% in the post-market trading after rising about 3% during the regular session. COIN shares had fallen about 4% this year, even as the price of bitcoin (BTC) surged about 23%.
Read more: Coinbase Upgraded to Neutral Ahead of Earnings at JPMorgan as Shares Surge
