Coinbase says Q1 earnings jumped to $1.8bn ahead of Nasdaq direct listing

  • Coinbase says revenues up nine-fold in Q1 
  • Company updates investors ahead of direct listing on Apr 14th 
  • Net income seen at $730m to $800m 

Coinbase estimated first quarter revenues rose by nine times year-on-year to $1.8bn as the company provided updated guidance for 2021 ahead of its stock market debut next week. 

In Q1, management estimated the number of verified users rose to 56 million with active users – so-called monthly transacting users (MTUs) – of 6.1 million 

Assets held on the platform was estimated at $223 billion, representing 11.3% of crypto asset market share, which currently stands at about $2 trillion. This includes $122bn from institutions 

Trading volumes rose to $335 billion, while total revenue jumped nine-fold to approximately $1.8 billionNet income surged from £32m last year to somewhere in the range of $730 million to $800 million. The company also reported adjusted EBITDA of approximately $1.1 billion. 

Coinbase also provided guidance for the rest of the year based on three scenarios based on the number of monthly transacting users (MTUs). 

In its SEC filing in February the firm reported total revenues rose to $1.3bn in 2020 from $533k in 2019, while net income rose to +$322k last year vs a loss of $30k in the prior year. The number of users had risen to 43m. We looked at this filing in detail here.

Meanwhile on Wednesday, DA Davidson raised its price target on the stock to $440 from $195 previously. 

Whilst Coinbase has clearly been riding the crypto boom to date, the reliance on the crypto market and on prices makes this stock as risky as the crypto assets it deals in. 

Read our 5 things we learned from the Coinbase IPO