Coinbase Global (COIN) Q3 2024 earnings summary

Executive summary

• Achieved seventh consecutive quarter of positive Adjusted EBITDA and fourth consecutive quarter of positive net income in Q3 2024, with net income reaching $75.5M, reversing a loss in Q3 2023.

• Revenue diversification advanced through derivatives, international expansion, custody, USDC integration, and subscription and services revenue on pace to surpass $2 billion in 2024, up from $1.4 billion in 2023.

• Board authorized a $1 billion stock buyback, reflecting strong balance sheet and capital flexibility.

• Monthly transacting users rose 16% year-over-year to 7.8M in Q3 2024; trading volume increased 143% to $185B.

• Adjusted EBITDA for Q3 2024 was $449M, up from $178M in Q3 2023.

Financial highlights

• Q3 2024 total revenue was $1.2 billion; net revenue was $1.13B, up 81% year-over-year; Adjusted EBITDA reached $449 million.

• Net income for Q3 was $75 million, impacted by $121 million in pre-tax unrealized losses on crypto investments.

• Transaction revenue grew 98% year-over-year to $573M; subscription and services revenue rose 66% to $556M.

• Operating income was $170M in Q3 2024, compared to a $80M loss in Q3 2023.

• Cash, cash equivalents, and USDC totaled $8.6B as of September 30, 2024.

Outlook and guidance

• Q4 subscription and services revenue expected to face headwinds from a 10% decline in Ethereum price and lower interest rates.

• Q4 technology, development, and G&A expenses projected at $690–$730 million; sales and marketing at $170–$220 million, with sales and marketing expected to increase.

• Continued focus on expense discipline and prudent investment in growth opportunities for 2025.

• The company believes it is well-positioned to drive revenue growth across macroeconomic environments and remains committed to regulatory clarity.