On Thursday, Following Q4 financial report by Coinbase, the community’s expectations blew away, with the company reporting $2.5 billion in net revenue for the period, outperforming analyst projections by 27%.
Coinbase outperformed the predictions
Coinbase was expected to produce $1.9 billion in sales for the last quarter of 2021, according to FactSet. Notably, transaction revenue more than doubled from Q3 to Q4, accounting for 91% ($2.276 billion) of the renowned crypto exchange’s total Q4 revenue. The exchange’s overall transaction revenue for 2021 was a remarkable $6.8 billion.
The exchange’s overall transaction revenue for 2021 was a remarkable $6.8 billion. Despite the report showing a significant increase in monthly transacting users (MTU) from 7.4 million in Q3 to 11.4 million in Q4, COIN share prices plummeted 4.7% in postmarket trade, bringing the year-to-date loss to 30%.
Notably, non-trading products like lending and staking brought in $213 million in Q4, accounting for just 9% of total revenue.
Expansion in major sectors
Coinbase report also says that the company is aiming to grow more in Web3, NFTs, and DeFi space. Notably, the exchange announced last year that it is also launching its own NFT marketplace.
Last week, as TheCoinRise reported, the exchange announced that it is hiring around 2,000 people this year.
The US-based crypto platform noted that, compared to the all-time high conditions of Q4, crypto price fluctuations and asset values have recently decreased, owing in part to international market uncertainty. As a result, Coinbase predicts a decrease in MTUs and subsequent transaction revenue in Q1 2022, according to the report.
Coinbase reported that it is planning an “aggressive” internal investment approach in 2022 despite the ongoing sluggish market. It, however, added that it is also prepared for any potentially unsavory. It added:
“In the event of a material decline in our business, below the ranges, we have planned for, we may slow down our investments and would expect to manage our adjusted EBITDA losses to approximately $500 million on a full-year basis.”