Coinbase's Q1 earnings jump to $1.6 billion as transaction revenue soars

Coinbase had a bumper first quarter, reporting $1.6 billion in revenue, an increase of 72% from the previous quarter, the company said after today's closing bell.

The company also reported a huge swing in net income, registering of $1.18 billion for the quarter, compared to a loss of $79 million in the same period of last year. Coinbase also generated $1.01 billion in EBITDA.

Earnings of $4.04 per share beat the consensus estimate of $1.15 per share, according to MarketWatch data.

"First quarter results reflect our investments in product expansion, continued operational discipline, and strong market conditions," the company said in its earnings statement. "Our market share in US spot and derivatives increased, we reached all-time highs on Coinbase Prime, and USDC market capitalization increased."

Coinbase's first-quarter revenue for 2024 was also an increase of about 115% when compared to the same period the previous year. Overall, transaction revenue rose for both consumer and institutional clients and totaled $1.08 billion for the quarter. Institutional transaction revenue grew by 113% from the previous quarter to $85 million.

The company's consumer-facing business continued to be Coinbase's primary revenue stream with the company generating $935.2 million from consumer transactions. Coinbase said its user numbers grew alongside revenues collected from its subscription service.

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After surging nearly 9% in the regular trading session, the company's shares dropped about 3% in after-hours trading to $222 as of 4:32 p.m. ET, according to Yahoo Finance. Coinbase shares have risen nearly 50% this past year.