Coinbase Global, Inc. stock research
FY2023 Q4
Coinbase Global (COIN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased slightly from the prior quarter and more notably from a year ago. Gross margin improved sequentially and year-over-year, reflecting a larger proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased slightly from the prior quarter and more notably from a year ago. Gross margin improved sequentially and year-over-year, reflecting a larger proportion of revenue retained as gross profit.
- The strongest observable margin driver is the combination of higher revenue and lower cost of revenue relative to the year-ago quarter, which together widened gross profit. This relationship is consistent with the sequential improvement as well.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly lower, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
90.9%
Gross profit
$867.5M
Revenue
$953.8M
Cost of revenue
$86.3M
Quarter-over-quarter change
+4.0 pts
Year-over-year change
+6.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $772.5M | $717.8M | $54.7M | 92.9% |
| Jun 30, 2023 | $707.9M | $610.4M | $97.5M | 86.2% |
| Sep 30, 2023 | $674.1M | $586.1M | $88.1M | 86.9% |
| Dec 31, 2023 | $953.8M | $867.5M | $86.3M | 90.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+4.0 pts
Year-over-year change
Dec 31, 2022
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the combination of higher revenue and lower cost of revenue relative to the year-ago quarter, which together widened gross profit. This relationship is consistent with the sequential improvement as well.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly lower, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened.
Monitor the trend in cost of revenue, which declined both sequentially and year-over-year, as its stability or further movement could affect gross margin.