Coinbase announced a stellar first quarter with revenue of $1.6 billion, a 72% increase over the previous quarter and a significant increase from $736 million in the same period last year. The company also reported a notable change in net income, hitting $1.18 billion during the quarter compared to a loss of $79 million in the corresponding period the previous year. Additionally, Coinbase generated EBITDA of $1.01 billion, beating expectations with earnings per share of $4.04, beating the consensus estimate of $1.15 per share.
The surge in revenue reflects Coinbase’s strategic investments in product expansion, operational discipline and favorable market conditions, according to the company’s earnings report. In particular, the company has seen its market share in U.S. spot and derivatives grow, Coinbase Prime reach all-time highs, and USDC market capitalization increase.
Trading revenue from both consumer and institutional clients experienced a significant increase during the quarter, totaling $1.08 billion. Institutional trading revenue increased 113% quarter over quarter to $85 million. Coinbase’s consumer-facing business remained its main source of revenue, generating $935.2 million in consumer transactions. The company also reported an increase in user numbers along with revenue from subscription services.
Looking ahead, Coinbase expects continued growth, with April total trading revenue exceeding $300 million and second quarter subscription and services revenue expected to be in the range of $525 million to $600 million.
Despite surging nearly 9% in regular trading, Coinbase shares were down about 3% in after-hours trading to $222 as of 4:32 PM ET. Nonetheless, Coinbase stock has seen an impressive increase of nearly 50% over the past year.
Featured Image: Megapixel
Please see disclaimer