Summary
Coinbase’s fourth quarter results beat analyst estimates, marking a turning point for the company. The company saw positive net income for the first time in two years and positive adjusted EBITDA in all four quarters of 2023. The success can be attributed to balance sheet strength and a diversified revenue base. Retail trading volume increased, and the launch of US spot bitcoin ETFs was seen as positive for the exchange. However, the company’s legal battle with the SEC remains unresolved. Despite uncertainties, Coinbase remains confident in its future outlook.
Key Points
1. Coinbase’s fourth quarter results beat the estimates of most analysts, with one saying the company’s first quarterly net income in two years marks a turning point for the crypto exchange.
2. The company notched positive adjusted EBITDA in all four quarters in 2023, amounting to $964 million.
3. Alyssa Choo, a crypto equities specialist at Bitwise, believes the fourth quarter is “a major positive inflection point” for Coinbase’s business.