Coinbase Global, Inc. Q4 FY2024 earnings call

• Brian Armstrong highlighted the pro-crypto political shifts in the US as a significant opportunity, noting the dawn of a new era for crypto. 2024 was a strong year with revenue doubling and two straight years of positive adjusted EBITDA.
• 2025 priorities include growing core businesses (expanding derivatives trading, accelerating asset addition), driving utility in crypto categories (focus on payments, solidifying Base as a leading chain for building), and scaling foundations (world-class policy team, scaling back-end services).
• Alesia Haas detailed Q4 results: average crypto market cap up 33%, crypto asset volatility up 27%; Q4 total trading volume, consumer and institutional trading volume growth; subscription and services revenue growth, and expense details including operating expenses up 19%.

In 2024, Coinbase Global, Inc. had total revenue exceeding $6.6 billion, with adjusted EBITDA of $3.3 billion. Subscription services revenue saw a remarkable 64% year-over-year increase to $2.3 billion, driven by USDC, staking, and Coinbase One. International revenue share reached 19% in Q4 due to improved payment rails and localization. For Q4, total trading volume was $439 billion, up 137%; consumer trading volume was $94 billion, up 176%; institutional trading volume was $345 billion, up 128%. Subscription and services revenue in Q4 was $641 million, up 15%.

• Q1 2025 expected subscription and services revenue in the range of $685 to $765 million.
• Stretch goal to make USDC the number one dollar stablecoin over the next few years.
• Q1 technology and development and general administrative expenses expected to be in the range of $750 million to $800 million.
• Sales and marketing expenses expected to be between $235 to $375 million, dependent on performance marketing opportunities and USDC balances.

• Volatility in crypto markets is inherent; Alesia noted that February's price actions were typical and had no meaningful impact on the business.
• Regulatory changes and market conditions could affect future performance.

Q: How did the liquidation event that took place in early February affect Coinbase Global, Inc. users? Were Coinbase Global, Inc. users mostly buyers of that, or have you lost users as a result of the violent price action that took place?

A: Alesia Haas stated that volatility is inherent in crypto, price actions in February were no different from average, markets recovered quickly, and retail users are long-term hodlers with no meaningful impact to the business.

Q: Regulatory headwinds are shifting to tailwinds. Base is skyrocketing to be the top layer two. Broad USDC adoption, international purpose business is booming, AI leader. CDP is the AWS of crypto. And the inclusion of Coinbase Global, Inc. in the S&P 500 potentially coming soon. Any other promising growth drivers to highlight?

A: Brian Armstrong mentioned Coinbase is a multiproduct business with diverse revenue streams, excited about next act for crypto (daily utility, payments, consumer apps), international expansion, and M&A opportunities.

Q: What are some initiatives that are now possible to explore under the new regulatory regime?

A: Brian Armstrong discussed initiatives like Perpetual Futures in US, tokenized securities/equities, prediction markets, and increased partnership opportunities and M&A in the US under new regulatory environment.