Coinbase Beats Q4 Estimations, Doubles Revenue

Coinbase Global Inc (Nasdaq: COIN) has generated $2.5 billion in revenue in the fourth quarter of 2021. It was a substantial gain from the previous quarter’s $1.2 billion and exceeded analyst estimation of $2 billion.

The adjusted earnings per share came in at $3.32, compared to the street estimates of $1.94.

The revenue was supported by a significant increase in trading volume on the cryptocurrency exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term. In the reported Q4, ending on December 31, the trading volume soared to $547 billion, increasing from $327 billion in the third quarter and $89 billion in the same quarter of the previous year.

The average number of monthly transacting users (MTUs) in the final 2021 quarter also touched 11.4 million, jumping from 7.4 million in the previous quarter.

“The sequential increase in retail Trading Volume was driven primarily by higher levels of volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term as well as strong consumer interest in a wider variety of crypto assets,” the exchange said.

Cautious Investors

Despite the strong Q4 results, Coinbase's share price decreased by almost 4 percent in aftermarket trading. The publicly listed share of the company shed around 30 percent this year and nearly 50 percent since its listing in April 2021.

The investors were mostly cautioned by the crypto exchange’s timid expectations for Q1 of 2022. It is expecting lower subscription and services segment revenues for the ongoing quarter compared to the previous one. Further, it is estimated to end 2022 with annual average retail MTUs of between 5 million to 15 million.

“This wider than normal set of factors results in a wider range of potential outcomes for 2022. Simply put, we have less near-term visibility, and it is currently too early to provide a more precise range,” the exchange added.