Coinbase Largest Crypto Trading Platform in USA It posted Q4 results that beat analysts’ expectations by 27% despite the crypto market crash.
Coinbase’s Q4 Financial Report Released Thursday Indicated that the results have exceeded the expectations of the market very much. The company had net income of more than $2.5 billion for the quarter. That exceeded analysts’ expectations by 27%.
before FactSet predict that Coinbase will generate approximately $1.9 billion in revenue this quarter. Because it is a crypto trading website that has become more popular than ever.twiceIt can be seen that transaction revenue in Q3 through Q4 increased more than 91% ($2.276 billion) of Q4 total revenue from transactions alone.
The company’s total transaction revenue for 2021 was $6.8 billion. Although the report shows net income of $840 million and significant growth. From 7.4 million monthly transactional users (MTUs) in Q3 to 11.4 million in Q4, COIN shares fell 4.7 percent, a total drop of more than 30% year over year.
It’s also worth noting that $213 million, or 9% of Q4 revenue, was generated by something other than trading, such as lending and staking.
The US crypto trading platform states that it has recently seen the volatility of the crypto market and its asset prices declining compared to the record-breaking Q4 cap, due to some uncertainty. As a result, the report states that Coinbase expects to see a decline in transaction MTUs and to track transaction revenue to follow in Q1 of 2022.
Although the first quarter Tends to stagnate, but Coinbase said of investors: It has plans for a “strong” investment in 2022, while ensuring it is prepared for potentially falling market conditions.
“In the event that our business revenue has dropped significantly. which is lower than our expected range We may have to slow down our investment and weExpected to be able to control losses EBITDA to approximately $500 million for the full year.”
Coinbase also pointed to the growth of Web3, NFT, and DeFi as potential sources of future growth revenue for the company. Based on the sharp increase in NFT sales last year.
The company also said it plans to hire 6,000 people by 2022 with a focus on customer support and reliability. which is what Coinbase has been in trouble.in previous years
Coinbase estimates that $4.25 billion to $5.25 billion by 2022 will be spent on development with a focus on technology and developer teams.