Coinbase Reports Estimated $ 1.8 Billion In Q1 Revenue, Nine Times

In preparation for its Nasdaq debut next week, cryptocurrency exchange Coinbase said on Tuesday that first-quarter earnings were about nine-fold from last year, due to a historic rally. the price of bitcoin.

Revenue for the period jumped to around $ 1.8 billion, from $ 190.6 million in the same quarter a year earlier, Coinbase said in a press release, adding that the results were preliminary and unaudited. Net income rose from $ 730 million to $ 800 million from $ 31.9 million a year ago. Coinbase said it has 56 million verified users.

The company is hosting a webcast to discuss its financial results starting at 4:30 p.m. EST.

Coinbase is set to become the latest tech company to hit the market with a massive valuation, capitalizing on the continued growth of the industry despite the broader economic struggles caused by the coronavirus pandemic. Private market trading valued the company at $ 68 billion, a figure that climbs to around $ 100 billion when factoring in a fully diluted number of shares.

Over the past seven months, software publisher Snowflake, food delivery app DoorDash, room-sharing site Airbnb, and the Roblox gaming platform have all gone public. Their market capitalization is currently between $ 40 billion and $ 113 billion.

Coinbase is unique because its increase in valuation mirrors the trajectory of major cryptocurrencies. Bitcoin rose about 700% last year, while ethereum climbed over 1,100%.

Coinbase said last week that the SEC approved the direct listing, scheduled for April 14. The company has announced its intention to register nearly 115 million Class A common shares, which will trade under the symbol COIN. In a direct listing, the issuing company forgoes selling new shares and instead allows existing stakeholders to sell their shares to new investors.

While Coinbase today relies heavily on attracting users who store and trade the two major cryptocurrencies, the company is betting on developing a larger ecosystem of crypto-related assets in the years to come. .

“We expect significant growth in 2021, driven by transaction and custody revenues given the increased interest by institutions in the crypto asset class,” the company said in the statement.

In the first quarter, Coinbase said it had 6.1 million monthly transaction users (MTUs). Looking at the full year, he presents three possible scenarios for determining revenue, as a large part of his business is derived from these transactions.

Rising market values ​​could lead to MTUs of 7 million, Coinbase’s most aggressive estimate. In the mid-range, assuming a flat crypto market, MTUs would reach 5.5 million. And the most conservative forecast, if prices go down, is 4 million MTU.

– CNBC’s MacKenzie Sigalos contributed to this report.

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