Coinbase Q1 Revenue Up 9x To $1.8BN Ahead Of Long-Awaited IPO

As CNBC pointed out, Coinbase is unique because the surge in its valuation (not to mention its revenues) has mirrored the trajectory of bitcoin, which is up about 700% in the past year, and ethereum, which has soared by more than 1,100%.

Read the rest of the press release below:

Coinbase Global, Inc. (the “Company”) today issued estimated results for its first quarter ended March 31, 2021, and an outlook for the full year ending December 31, 2021.

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Crypto price cycle overview

Crypto markets have observed four major price cycles since 2010 which have typically had durations ranging from two to four years. On average, these price cycles have increased the overall crypto market capitalization significantly from the prior cycle and attracted new users into the crypto economy. These cycles can be highly volatile, and as a result, we measure our performance over price cycles in lieu of quarterly results. We believe that we can create long-term value throughout these price cycles.

Impact of crypto prices on Coinbase’s results

MTUs, Trading Volume, and therefore transaction revenue currently fluctuate, potentially materially, with Bitcoin price and crypto asset volatility. This revenue unpredictability, in turn, impacts our profitability on a quarter-to-quarter basis. In terms of expenses, we intend to prioritize investment, including in periods where we may see a decrease in Bitcoin price. This is because we believe that scale is central to achieving our mission and it is still early in the development of this industry.

Full-Year 2021 Outlook

Our approach to public outlooks will be to provide transparency consistent with the internal plans we use to manage our business. Given the inherent unpredictability of our business mentioned above, we are providing a range of possible scenarios for full-year 2021:

2021 Annual Average MTU possible scenarios

Our transaction revenue is currently highly correlated to MTUs. Looking to full year 2021, we present three possible scenarios for annual average MTU:

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