Detailed explanation of Coinbase's latest financial report: The annual revenue in 2024 was nearly US$6.6 billion, and the largest quarterly revenue in Q4 was achieved in three years.

Coinbase's 2024 financial report is impressive: revenue doubled, Q4 profit exceeded expectations

Coinbase released its fourth quarter and full-year financial report on February 13. The data showed that the company's performance grew strongly, exceeding market expectations. Thanks to the strong rebound in the cryptocurrency market at the end of last year, Coinbase's fourth-quarter revenue hit a three-year high of $2.27 billion, a year-on-year increase of 88%, and a significant month-on-month growth. Earnings per share were as high as $4.68, far exceeding the analysts’ forecast of $2.11. The revenue for the whole year doubled to $6.564 billion, with net income of $2.6 billion.

Trading revenue increased significantly, with both retail and institutional trading performed well

In 2024, Coinbase's trading revenue reached US$4 billion, a year-on-year increase of 162%; the total trading volume reached US$1.2 trillion, a year-on-year increase of 148%. Among them, retail trading volume increased by 195% year-on-year, and institutional trading volume increased by 139% year-on-year. The fourth quarter transaction revenue was US$1.6 billion, a 172% increase from the previous quarter; the transaction volume was US$439 billion, a 185% increase from the previous year. This is mainly due to rising crypto asset prices and increased volatility, as well as the launch of Bitcoin ETF products and favorable regulatory expectations. Coinbase has also added many new trading assets, expanding its share in the spot and derivatives markets.

In the fourth quarter, retail trading volume increased by 176% month-on-month, revenue increased by 179% month-on-month; institutional trading volume increased by 128% month-on-month, and revenue increased by 156% month-on-month. In addition, the increase in Base sorter revenue has also driven the growth of other transaction revenue.

Subscription and service revenue diversified, and stablecoins and blockchain rewards contributed significantly

Subscription and service revenue reached US$2.3 billion in 2024, a year-on-year increase of 64%. This comes primarily from blockchain reward revenue, stablecoin revenue and Coinbase One subscription revenue. Subscription and service revenue in the fourth quarter was US$641 million, a 15% increase from the previous quarter. Although stablecoin revenue fell slightly month-on-month, it increased by 31% year-on-year. Blockchain reward revenue increased by 39% month-on-month, mainly due to the rising price of crypto assets and the rising protocol reward rate. Custody fee revenue increased by 36% month-on-month, mainly benefiting from the rising price of crypto assets and the continued growth of the number of custody assets. Coinbase One also contributed considerable revenue growth.

Operating expenditures grew, but still remained profitable

Total operating expenses in 2024 were US$4.3 billion, a year-on-year increase of 30%. Total operating expenses in the fourth quarter were US$1.2 billion, a 19% increase from the previous quarter. The increase in operating expenses is mainly due to increased transaction expenses resulting from increased transaction activity, as well as increased marketing expenses and USDC incentive expenses.

Looking forward: Continue to promote revenue diversification and aim to become a USDC leader

Coinbase achieved approximately $750 million in transaction revenue in the first quarter of 2025 and is expected to maintain strong growth in subscription and service revenue. The company will continue to focus on revenue diversification, reduce its reliance on transaction revenue, and strive to make USDC the leading stablecoin.

In short, Coinbase's 2024 financial report shows that the company's performance is strong and its future development prospects are good. However, volatility in the cryptocurrency market remains, and uncertainty remains for the company's future performance.

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