Coinbase announced a remarkable first quarter, with revenue reaching $1.6 billion, marking a substantial 72% increase from the previous quarter and a significant rise from $736 million in the same period last year. The company also reported a notable swing in net income, posting $1.18 billion for the quarter compared to a loss of $79 million in the previous year’s corresponding period. Additionally, Coinbase generated $1.01 billion in EBITDA, surpassing expectations with earnings of $4.04 per share, exceeding the consensus estimate of $1.15 per share.

The surge in revenue reflects Coinbase’s strategic investments in product expansion, operational discipline, and favorable market conditions, according to the company’s earnings statement. Notably, the company observed increased market share in US spot and derivatives, achieving all-time highs on Coinbase Prime, and witnessing growth in USDC market capitalization.

Transaction revenue for both consumer and institutional clients experienced a substantial uptick, totaling $1.08 billion for the quarter. Institutional transaction revenue notably grew by 113% from the previous quarter to $85 million. Coinbase’s consumer-facing business remained its primary revenue stream, generating $935.2 million from consumer transactions. The company also reported growth in user numbers alongside revenues collected from its subscription service.

Looking ahead, Coinbase anticipates continued growth, stating that it generated over $300 million of total transaction revenue in April, with expectations for Q2 subscription and services revenue to fall within a range of $525-$600 million.

Despite surging nearly 9% in regular trading, Coinbase shares dipped about 3% in after-hours trading to $222 as of 4:32 p.m. ET. Nonetheless, Coinbase shares have seen a remarkable increase of nearly 50% over the past year.

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