Coinbase Global Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Owen Lau - Oppenheimer & Co Inc - Analyst : Good evening and thank you for taking my questions and congratulations on a great quarter. So when I look at your December and January market shares for US spot crypto, it looks like you started to take share away from your competitors. There have been many lower-cost products out there since 2021, like FTX and now spot ETF. Could you please talk about how you can still gain shares, not just one month or two months, but through the cycle? And what makes Coinbase different from other platforms? Thanks.

Question: Devin Ryan - Citizens JMP Securities - Analyst : Thanks so much. Hi, Brian. Hi, Alesia. I have a question on international derivatives. Obviously, just gaining massive traction there and another great quarter of growth. It seems like the fees there are quite a bit lower, obviously. And so I also appreciate that might make sense as you're taking share at this type of rate. But I'm curious as you think about take rates in derivatives longer term? Should we expect that they would hold the line with where they are now? Or could there be an opportunity to actually increase the take rates as you get to a more mature share? Just curious how to think about this opportunity longer term as you continue to grow it. Thanks. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. FEBRUARY 13, 2025 / 10:30PM, COIN.OQ - Q4 2024 Coinbase Global Inc Earnings Call

Question: Benjamin Budish - Barclays Capital - Analyst : Hi. Good afternoon and thanks for taking the question. I was wondering if you could unpack a little bit of some of the activity, the trends you're seeing in some of the either new to Coinbase or resurrected customers. Can you talk about what is the activity level? Are they coming over with large accounts? Are they engaging in a lot of trading? Or is a lot of the trading coming from your back book of existing customers. So what does that cohort look like? And maybe similarly with Coinbase One what is the activity level like of the new traders, how would you describe that group? Thank you.

Question: Kenneth Worthington - JPMorgan - Analyst : Hi. Good afternoon. Thanks for taking the question. We have a more friendly administration, which you noted. The White House repealed SAB 121 right out of the gate. As we look forward, what are the more or most important pieces that Congress and regulators have to get right in order for the construct -- in order to get a constructive market for developers that were hoping -- actually developers and markets that we're hoping to see?

Question: Peter Christiansen - Citi Investment Research - Analyst : Good evening. Thanks for the question and congrats on the outstanding quarter and result. Brian, I'm curious, I want to take a little bit more into the consumer acquisition strategy for Coinbase. I'd love to hear your thoughts on how to crypto natives build up the value proposition for consumers to trade on crypto native solutions, how does that value proposition or the differentiation of Val versus all-in-one trade five solutions that are out there?

Question: Patrick Moley - Piper Sandler Companies - Analyst : Yes. Good evening. Thanks for taking the question. So Brian, a few weeks ago, you posted on X and said you felt like Coinbase needed to rethink its listing process given the sheer volume of tokens that are being created on a daily basis a lot of which I would assume are these mean tokens where you're seeing a lot of trading being done. So could you maybe just expand on those comments and talk about how you see your listed token offering evolving from here? Thanks.

Question: Dan Dolev - Mizuho Securities - Analyst : Hey, guys. Great results out there. I just wanted to ask about -- I think you mentioned global contracts earlier. So I think your competitor was talking about this is a big market of political betting or any betting. Is there any view here to use Coinbase as a platform globally to do something similar? Thank you.

Question: Bo Pei - US Tiger Securities - Analyst : (technical difficulty) management. Thanks for taking my questions and congrats on the strong result. Two questions, if I may. So first thing about retail trading fee rate. So historically, the retail trading fee rate has tended to decline during periods surging trading volume. However, this quarter, despite trading volume nearly tripling the retail fee rate actually increased slightly sequentially. So could you just provide more insight into this dynamic? Was this primarily driven by a rapid increase in derivatives revenue or changing stablecoin trading phase or other factors? That's my first question.

Question: Bo Pei - US Tiger Securities - Analyst : Yeah. And second question is about competition. So yesterday, an online trading platform reported, I think, 400% year-over-year growth in crypto trading volume. How do you will the competitive landscape in this environment, specifically? How do you plan to compete with peers that offer a broader range of trading products beyond crypto?

Question: Alexander Markgraff - KeyBanc Capital Markets Inc - Analyst : Thanks. I'll try to squeeze in two here if I can. Maybe just one model one first. As it relates to the sales and marketing outlook, I understand the logic in terms of the wider than usual range. Just curious, is that wider than usual range? Is that a new approach to forecasting that line or how you're communicating that to us? Or is it more a function of market conditions as you're going through the planning process?

Question: Alexander Markgraff - KeyBanc Capital Markets Inc - Analyst : Okay. Understood. And then, Brian, maybe one on CDP. When you talk about company building onchain, maybe just could you paint a picture of non-crypto native participation today and how you would expect that to evolve in a backdrop where there is clearer regulation and legislation in the near term?