Coinbase stock ticks up on Q4 revenue beat, declining trading volume

The Yahoo Finance Live team discusses Coinbase's Q4 earnings report and the stock market reaction.

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- We want to get to Coinbase. The stock up here in extended trading up just about 1%. So pairing some of its initial gains on the heels of its quarterly results. Taking a look at some of these numbers. Revenue for the fourth quarter coming in better than expected. That's one of the big drivers here in the after hours action. You're looking at sales of $629.1 million. That beat the street's estimate of $586.2 million.

Drilling down to trading volume, transaction revenue. Trading volume did fall as expected during its most recent quarter. Falling to $145 billion. An estimate was for $149 billion. So $4 billion less than what the street was looking for.

Transaction revenue coming in a bit late, $322.1 million. The estimate was for $326.5 million. The company, though, that it saying that it is operating towards its goal of improving adjusted EBITDA versus 2022 levels. They also said that they do not expect to meaningfully increase their headcount versus what we had seen here with the company.

Now in their shareholder letter the company also saying that 2023 will be a year of regulatory focus. And they believe that Coinbase is in a position to benefit from that new environment. But again, the revenue beat is one of the reasons why we are still seeing that stock barely holding onto gains in extended trading up just about 1% right now. We'll have more for you when we come back.