Coinbase Global (STU:1QZ) Gross Margin %

: 86.84% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Coinbase Global's Gross Profit for the three months ended in Dec. 2023 was €759 Mil. Coinbase Global's Revenue for the three months ended in Dec. 2023 was €875 Mil. Therefore, Coinbase Global's Gross Margin % for the quarter that ended in Dec. 2023 was 86.84%.

The historical rank and industry rank for Coinbase Global's Gross Margin % or its related term are showing as below:

STU:1QZ' s Gross Margin % Range Over the Past 10 Years
Min: 80.28 Med: 84.63 Max: 89.39
Current: 86.47

During the past 5 years, the highest Gross Margin % of Coinbase Global was 89.39%. The lowest was 80.28%. And the median was 84.63%.

STU:1QZ's Gross Margin % is ranked better than
85.12% of 605 companies
in the Capital Markets industry
Industry Median: 50.25 vs STU:1QZ: 86.47

Coinbase Global had a gross margin of 86.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Coinbase Global was 0.00% per year.

Coinbase Global Gross Margin % Historical Data

The historical data trend for Coinbase Global's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Coinbase Global Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

84.63

89.39

83.83

80.28

86.47

Coinbase Global Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %													86.81	87.53	84.72	86.56	86.84

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Coinbase Global's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Coinbase Global Gross Margin % Distribution

For the Capital Markets industry and Financial Services sector, Coinbase Global's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Coinbase Global's Gross Margin % falls into.

Coinbase Global Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Coinbase Global's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2464.6	/	2850.387
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2850.387 - 385.786)	/	2850.387
	=	86.47 %

Coinbase Global's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	759.5	/	874.63
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(874.63 - 115.138)	/	874.63
	=	86.84 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Coinbase Global (STU:1QZ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Coinbase Global had a gross margin of 86.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Coinbase Global Gross Margin % Related Terms

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Coinbase Global (STU:1QZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Coinbase Global Inc (STU:1QZ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

COIN:USA COIN:Mexico 1QZ:Germany C2OI34:Brazil COIN:Austria

Address

c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, DE, USA, 19801

Website

https://www.coinbase.com

Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage and data analytics.

Coinbase Global (STU:1QZ) Headlines

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