01—Abstract
Summary
Summary of the 10-Q filed November 10, 2021. Cited figures are marked; the original filing is the authoritative source.
Coinbase Global, Inc. (COIN) reported strong financial results for the third quarter and the first nine months of 2021, reflecting significant growth in the cryptoeconomy and increased customer engagement.
Total revenue surged by 316% year-over-year for the third quarter and 671% for the nine-month period, driven primarily by a substantial increase in transaction revenue due to higher crypto asset volatility and trading volumes. Subscription and services revenue also saw significant growth, indicating a shift towards crypto utility beyond just investment. The company reported a net income of $406.1 milliona for Q3 2021, a substantial increase from $81.3 million in the prior year's quarter.
This strong performance was supported by robust growth in verified users and monthly transacting users (MTUs), alongside strategic investments in product innovation and infrastructure. Coinbase continues to expand its offerings with new products like Coinbase Prime and plans for Coinbase NFT, aiming to solidify its position as a key infrastructure provider for the growing Web 3.0 ecosystem.
02—Key points
Key Highlights
- Total revenue for Q3 2021 increased by 316% to $1.31 billion compared to $315 million in Q3 2020.
- Net income for Q3 2021 was $406.1 million, a significant increase from $81.3 million in Q3 2020.
- Subscription and services revenue grew by 1,248% year-over-year for Q3 2021, reaching $145.1 million.
- Verified users grew to 73 million by the end of Q3 2021, up 87% year-over-year.
- Monthly Transacting Users (MTUs) for Q3 2021 were 7.4 million, a 363% increase from 1.6 million in Q3 2020.
- Assets on Platform grew to $255 billion by the end of Q3 2021, an increase of 608% from $36 billion in Q3 2020.
- Coinbase continued to expand its product suite, launching Coinbase Prime and announcing plans for Coinbase NFT.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2021filed November 10, 2021Financial Statements
Q3 FY2021 against Q3 FY2020
| Line item | Q3 FY2021Q3 FY2020 | Change |
|---|---|---|
| Revenue | $1.31B$315.36M | +316.0% |
| R&D Expenses | $356.26M$73.32M | +385.9% |
| Operating Expenses | $1.02B$213.85M | +377.0% |
| Operating Income | $291.81M$101.50M | +187.5% |
| Interest Expense | $6.97M— | — |
| Net Income | $406.10M$81.30M | +399.5% |
| EPS (Basic) | $1.92$0.25 | +668.0% |
| EPS (Diluted) | $1.62$0.23 | +604.3% |
| Shares Outstanding (Basic) | 209.60M68.98M | +203.9% |
| Shares Outstanding (Diluted) | 250.54M90.71M | +176.2% |
05—Questions
Frequently Asked Questions
What was Coinbase's revenue performance in Q3 2021?
Coinbase's total revenue in Q3 2021 was $1.31 billion, a significant increase of 316% compared to $315 million in Q3 2020. This growth was primarily driven by a substantial rise in transaction revenue, up 295% year-over-year, due to increased crypto asset volatility and trading volumes. Subscription and services revenue also saw remarkable growth, increasing by 1,248% to $145.1 million.
How did Coinbase's profitability change in Q3 2021?
Coinbase demonstrated strong profitability in Q3 2021, reporting a net income of $406.1 million, which is a substantial increase from $81.3 million in the same quarter of the previous year. This reflects the significant growth in revenue and effective cost management.
What were the key drivers of customer growth for Coinbase?
Customer growth was a key highlight, with verified users reaching 73 million by the end of Q3 2021, an 87% increase year-over-year. Monthly Transacting Users (MTUs) also saw significant growth, reaching 7.4 million in Q3 2021, a 363% increase from the prior year. The company's strategy to list more assets and integrate with more fiat payment rails contributed to this growth.
How did Coinbase's assets under custody change?
Assets on Platform, representing the total U.S. dollar equivalent value of fiat currency and crypto assets held or managed on the platform, grew substantially to $255 billion by the end of Q3 2021, a 608% increase from $36 billion in Q3 2020. This reflects increased customer trust and the growth of the cryptoeconomy.
What new products or initiatives did Coinbase announce or launch?
Coinbase continued its focus on product innovation. In Q3 2021, they launched Coinbase Prime for institutional users and announced plans to launch Coinbase NFT, a peer-to-peer NFT marketplace. They are also enhancing customer support with 24/7 live phone and messaging support planned for Q4.
06—Continue