Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Coinbase’s 1Q earnings preview: Profitability expected for second straight quarter

Coinbase is set to release its quarter one (Q1) 2024 financial results on 2 May 2024, after the US market closes.

Video poster image

When does Coinbase Inc report earnings?

Coinbase is set to release its quarter one (Q1) 2024 financial results on 2 May 2024, after the US market closes.

Coinbase’s 1Q 2024 results – what to expect Source: Refinitiv

Expectations are for Coinbase’s Q1 revenue to register a 71% year-on-year (YoY) growth to US$1.3 billion, up from the US$772 million a year ago. This will be the highest quarterly revenue growth since 4Q 2021, supported by a potential near-doubling of its transaction revenue from a year ago.

Earnings per share (EPS) is expected to come in at US$0.97. This will mark the second straight quarter of profitability and a continued turnaround from its losses a year ago.

Green light for Bitcoin ETFs, risk-on appetite may support higher trading volume

Since the US Securities and Exchange Commission (SEC) gave the green light for the first spot Bitcoin exchange-traded funds (ETF) in the US on 10 January 2024, the crypto market has seen a renewed surge in interest to start the year. Bitcoin, which takes up around 29% of Coinbase’s transaction revenue, was up 69% during the first quarter of this year. Ethereum, which takes up around 13% of Coinbase’s transaction revenue, was up 60%.

Being the largest cryptocurrency exchange in the US, greater accessibility to cryptocurrencies through the ETFs may translate to higher trading volumes coming through the Coinbase platform.

Broad expectations for improving macroeconomic conditions in 2024 have also uplifted market risk appetite and improve sentiments in the cryptocurrencies space, which is known to be highly volatile. While the Crypto Fear & Greed Index has eased off its recent peak lately, it continues to hover in ‘greed’ territory around levels seen in late-2023.

Looking ahead, Hong Kong has given initial approval to its first spot Bitcoin and Ether ETFs on 15 April 2024, while Australia is also expected to follow in the footsteps of US and Hong Kong, with chatters of an approval for spot-Bitcoin ETFs by the end of 2024. The trend for wider adoption may potentially drive more traction across the cryptocurrencies space, which has a positive knock-on impact on Coinbase.

Crypto Fear & Greed Index Source: TradingView

Fee reduction to fend off competition on watch

Back in February this year, Coinbase has announced fee reduction for high-volume traders to step up against its competitors and to boost its institutional business. High-volume traders can now get upgraded to lower fee tiers by providing proof of over $500,000 in monthly trading volume on other crypto exchanges.

In 4Q 2023, its institutional business represents 8% of Coinbase's transaction revenue and institutional trading volume were up 92% quarter-on-quarter.

The upcoming 1Q results will offer a glimpse of any success in its fee-reduction move in terms of increasing its market share and whether the recovery momentum in its institutional trading volume can continue.

Subscription and Services Revenue to remain stable

For 1Q 2024, its subscription and services revenue, which accounts for 45% of its business, is expected to grow 21% from a year ago. Higher crypto asset prices may have a positive impact on its blockchain rewards revenue and custodial fee revenue, while higher average custodial fiat balances may support growth in interest income.

This may help to underpin the steady growth momentum for this segment, while eyes will be on several new products, such as Coinbase One, Prime Financing products and Coinbase Cloud, to see if they can gain traction.

Technical analysis – Coinbase’s share price back to retest Ichimoku Cloud support

Coinbase’s share price has retraced as much as 27% from its March 2024 peak, but is attempting to stabilise lately at the upper edge of its daily Ichimoku Cloud support around the US$220.00 level. For now, a downward trendline resistance may still be in the way, which will require buyers to break above the US$250.00 level in order to signal greater control. Its daily relative strength index (RSI) is hovering back at its key 50 level for now, which points to a more neutral balance.

On the downside, failure for share price to sustain above the US$220.00 level may pave the way to retest the US$188.00-$200.00 level next, where the lower edge of the cloud support stands.

Coinbase Global Inc (All Sessions) Source: IG charts

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.