Coinbase (COIN) Financials: Income Statement Analysis

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Key Highlights from Coinbase's Income Statement

Fiscal YearTTM (Mar '25)FY 2024FY 2023FY 2022FY 2021
Revenue$6.66B$6.29B$2.93B$3.15B$7.84B
Gross Profit$5.68B$5.40B$2.51B$2.52B$6.57B
Net Income$1.47B$2.58B$94.9M-$2.63B$3.62B
Profit Margin22.02%40.96%3.24%-83.36%39.52%

Revenue Breakdown and Trends

Coinbase's revenue growth shows dramatic year-over-year changes:

The cost of revenue remained stable at 12-20% of total revenue, indicating scalable operations despite market volatility.

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Profitability Metrics

Key margins to watch:

  1. Gross margin: Consistently strong at 80-89%
  2. Operating margin: Recovered to 32.36% in FY2024
  3. EBITDA margin: From -81.33% (2022) to 34.38% (2024)

The effective tax rate dropped to 7.51% in TTM period, significantly boosting net income.

Shareholder Value Indicators

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FAQ: Coinbase Financials

Q: Why did Coinbase's 2022 results show massive losses?
A: The crypto winter caused trading volume declines and asset write-downs, reflected in the -83.36% profit margin.

Q: What drove the 2024 revenue recovery?
A: Institutional adoption and new product offerings (staking services, derivatives) contributed to 115% revenue growth.

Q: How does Coinbase's 85% gross margin compare to competitors?
A: This exceeds traditional brokerages (60-70%) but aligns with top crypto exchanges due to low transaction costs.

Q: Is the share count increase concerning?
A: The 7.46% dilution in 2024 primarily financed strategic acquisitions, offset by strong EPS growth.

Conclusion

Coinbase demonstrates remarkable resilience with:

  1. Revenue diversification beyond trading fees
  2. Cost control during market downturns
  3. ROI-positive expansion (evident in 2024 results)

Data current as of May 2025. Methodology follows GAAP reporting standards.