Coinbase made $2.2 billion in revenue from transaction fees in Q4
Coinbase’s Q4 financial report vastly exceeded market expectations Thursday, after the firm posted $2.5 billion in net revenue for the quarter, beating analyst predictions by 27%.
FactSet consensus had forecasted Coinbase to generate approximately $1.9 billion in revenue for the period. Notably, the popular crypto exchange more than doubled transaction revenue from Q3 to Q4, generating 91% ($2.276 billion) of its total Q4 revenue from transactions alone.
Adding to investor confidence, the company’s total transaction revenue for 2021 was a whopping $6.8 billion. Despite the report posting $840 million in net income and showing substantial growth from 7.4 million monthly transacting users (MTU) in Q3 to 11.4 million in Q4, COIN share prices fell 4.7% in postmarket trading, now down a total of 30% year-to-date.
It is also worth noting that $213 million, just 9% of Q4 revenue, was generated by non-trading products coming from other sources like lending and staking.
The US-based crypto platform stated that it has recently witnessed a drop in crypto market volatility and asset prices when compared to the all-time-high conditions of Q4, owing partially to instability in global market conditions. Resultantly, the report stated that Coinbase expects to see a comparative decline in MTUs and subsequent transaction revenue in Q1 2022.
Despite a potentially sluggish Q1, Coinbase wrote to its investors that it plans for “aggressive” internal investment in 2022 while also ensuring that it is prepared for any potentially unsavory market conditions.
Related: Who really created the Coinbase Superbowl ad? Armstrong called out on Twitter
Coinbase also pointed to the growth of Web3, NFTs, and DeFi as sources of future growth for the company,
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