Yesterday, Coinbase, the leading cryptocurrency exchange in the US, reported that its fourth-quarter earnings beat analyst estimates after it earned $2.5B in net revenue.

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Investors initially predicted that Coinbase would generate around $1.94 billion during the quarter, much lower than the reality. Some of the key metrics include, $840 million net income, $1.2 billion in adjusted EBITDA, and 1.4 million monthly transaction users. Most notably, Coinbase’s total transaction revenue for 2021 was an impressive $6.8 billion.

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"In 2021, millions of new users joined the cryptoeconomy through Coinbase; we generated $7.4 billion in net revenue – including $2.5 billion in the fourth quarter; we became the first publicly traded crypto asset trading platform; and we made substantial progress in building a best-in-class infrastructure to enable easy, safe and secure on-ramps and access into the global cryptoeconomy," the firm said in its shareholder letter. 

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Despite a potentially slow start to 2022, Coinbase reassured its investors that it plans for “aggressive” internal investment this year while also preparing for any potential bad market conditions.

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“In the event of a material decline in our business, below the ranges we have planned for, we may slow down our investments and would expect to manage our adjusted EBITDA losses to approximately $500 million on a full-year basis.”

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