Coinbase reported impressive results for the first quarter of the week ahead of the exchange’s direct listing on the Nasdaq exchange, indicating that trading volume increased by 276% and quarterly revenue of $ 1.8 billion.
The significant revenues shown on the company’s first-quarter income statement surpassed revenues of $ 190 million in the same period last year, as the company attributes some of this explosive growth to the bullish Bitcoin market.
The American Stock Exchange estimated net income at $ 730 million to $ 800 million and EBIDTA at $ 1.1 billion.
In a bull market, the number of monthly active users grew to over six million from 1.3 million in the first quarter, and the cryptocurrencies on the platform grew 1,200% year-on-year from $ 17 billion to $ 223 billion.
Alicia Haas, CEO, American Exchange said:
“We have seen how the rise in cryptocurrency prices has increased user activity and trading volume on our platform.”
With 56 million verified users, Haas suggested that the number of monthly active users could rise to a maximum of seven million this year, though he warned that this could drop to four million if it entered a bear market this year.
The company spends a lot of money to attract new clients. After listing next week, Coinbase is set to increase sales and marketing expenditures to 12-15% of net revenue this year to drive “significant growth in 2021″.
As we look to 2021 to expand business and continue to drive product innovation, we expect technology and development, general and administrative expenses to range from $ 1.3 billion to $ 1.6 billion, excluding compensation. Based on 2021 shares. ”
Report findings are preliminary and unaudited, but the Oslo Bowers wanted to publish a detailed report before Nasdaq was listed on April 14th. The company will register approximately 115 million Class A shares under the index currency. With direct listing, Oslo Børs will not sell new shares and can only register existing shares, so that existing stakeholders can sell their shares to new investors.
Coinbase received several estimates ranging from $ 68 billion based on private market transactions to more than $ 120 billion.
David Trainer, chief executive of investment research firm New Constructs, questioned the high expectations. “The estimated value of Coinbase at around $ 100 billion is very high,” he said in a note to clients on Monday.
“It is difficult to simply argue that the company can meet the high expectations that lie in valuation, given the increasing competition in the mature cryptocurrency exchange market and the lack of sustainability in market share and profitability today.”
FTX founder Sam Bankman-Freed tweeted congratulations on Coinbase for the impressive quarterly data and upcoming initial public offerings, and compared it to data from his new exchange.