Cryptocurrency exchange Coinbase reported key financial results for the fourth quarter of 2023 that beat Wall Street's expectations.
The recovery of the cryptocurrency market allowed Coinbase to generate $953.8 million in revenue in the fourth quarter, up 41% sequentially and 50% year-over-year. This compares to analyst expectations of $826.1 million in revenue.
Transaction revenue for the period increased 83% to $529.3 million from $288.6 million in the third quarter of 2023. Coinbase emphasized that the growth in transaction revenue was driven by high levels of volatility in the cryptocurrency market, driven by the approval of spot Bitcoin ETFs and broad expectations of improved macroeconomic conditions in 2024.
The breakdown showed that consumer transaction revenue totaled $492.5 million and institutional transaction revenue totaled $36.7 million. Both figures have more than doubled since the third quarter of 2023.
Coinbase posted a net income of $273 million in the fourth quarter, compared to a loss of $557 million in the same period of 2022.
"In 2023, we saw our operational rigor pay off ... We met our financial target, launched innovative new products, strengthened our competitive position, and redoubled our efforts to create a robust regulatory framework for cryptocurrencies in the US," Coinbase said in the report.
"We have always taken a long-term approach and built our business to meet regulatory requirements, even when it was not a popular choice," emphasized Brian Armstrong, Co-Founder and CEO of the exchange.
Coinbase shares are currently trading at $165.67, up 3.3% in the last 24 hours. It's worth noting that the exchange's stock has risen more than 150% over the past year.
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