Coinbase Releases Fourth Quarter and Full Year 2024 Shareholder Letter

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02/13/2025 - 04:09 PM

REMOTE FIRST COMPANY // SAN DIEGO--(BUSINESS WIRE)-- Coinbase Global, Inc. (the “Company” or “Coinbase”) has posted a shareholder letter containing its fourth quarter and full year 2024 financial results on its Investor Relations website at investor.coinbase.com.

2024 was a strong year for crypto and for Coinbase - our revenue more than doubled to $6.6 billion, net income was $2.6 billion, and we generated $3.3 billion of Adjusted EBITDA. Q4 total revenue was $2.3 billion, up 88% Q/Q. Transaction revenue was $1.6 billion, up 172% Q/Q. Subscription and services revenue grew 15% Q/Q to $641 million, driven by higher crypto asset prices, average native unit inflows across staking, custody, and USDC assets in our product suite, as well as continued growth of Coinbase One subscribers.

Total operating expenses were $1.2 billion, up 19% Q/Q, while technology & development, general & administrative, and sales & marketing expenses were collectively $957 million, up 10% Q/Q. Net income was $1.3 billion and included $476 million in pre-tax gains on our crypto asset investment portfolio—the vast majority of which were unrealized—as crypto prices were higher on December 31, 2024, compared to September 30, 2024. Gains on our crypto asset investment portfolio were $357 million after reflecting the tax impact. Adjusted EBITDA was $1.3 billion. Our balance sheet strengthened, as we ended Q4 with $9.3 billion in USD resources, up $1.1 billion Q/Q.

We continue to drive revenue and expand utility through product innovation. Coinbase advanced the cryptoeconomy by deepening institutional adoption, scaling international growth, and expanding real-world utility. Our investments in newer products helped drive revenue growth, and we continue to innovate with products that showcase the power of onchain finance. Base continued its rapid ascent, enabling developers to build new financial products that drive user engagement and ecosystem expansion.

There is strong momentum to finally achieve regulatory clarity for the industry. We remain deeply engaged in advancing policy frameworks to support a clear and innovation-friendly regulatory environment for crypto. Momentum is building in the U.S. for legislation addressing stablecoins and broader market structure. We also made good progress with licenses internationally. Additionally, we achieved important developments in our ongoing litigation with the SEC. In January 2025, a district court granted our request for interlocutory appeal. Discovery is paused pending the outcome of this process.

Q1 2025 Outlook

Through February 11, we have generated approximately $750 million of transaction revenue.
We expect Q1 subscription and services revenue to be within a range of $685-$765 million.
We expect Q1 transaction expenses will be in the mid-to-high teens as a percentage of net revenue.
We expect technology & development and general & administrative expenses to range from $750-$800 million, reflecting growth in variable expenses related to elevated Trading Volume as well as payroll taxes and headcount.
We expect sales and marketing expenses to increase Q/Q to $235-$375 million, driven by potential variability in:
- Performance marketing
- USDC assets in our product suite, which drive USDC rewards

The Company will hold a question and answer session to discuss its fourth quarter and full year 2024 financial results on Thursday, February 13, 2025, at 2:30 p.m. PT.

The live webcast of the call can be accessed here. Following the call, a replay of the call, as well as a transcript, will be available on its Investor Relations website at investor.coinbase.com.

Disclosure Information

In addition to filings with the Securities and Exchange Commission, the Company uses its Investor Relations website (investor.coinbase.com), its blog (blog.coinbase.com), press releases, public conference calls and webcasts, its X feed (@coinbase), Brian Armstrong’s X feed (@brian_armstrong), its LinkedIn page, and its YouTube channel as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Coinbase

Crypto creates economic freedom by ensuring that people can participate fairly in the economy, and Coinbase (NASDAQ: COIN) is on a mission to increase economic freedom for more than 1 billion people. We’re updating the century-old financial system by providing a trusted platform that makes it easy for people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. We also provide critical infrastructure for onchain activity and support builders who share our vision that onchain is the new online. And together with the crypto community, we advocate for responsible rules to make the benefits of crypto available around the world.