Shares in US cryptocurrency exchange Coinbase rose 12.7% after its fourth-quarter earnings report beat expectations. Net revenue rose 45.2% to $905 million, beating analysts’ forecasts of $825 million. The company also reported net income of $273 million, marking its first positive quarter since Q4 2021. This marks a significant improvement from a net loss of $2 million in the previous quarter.

Core transaction revenue totaled $529.3 million, with consumer cryptocurrency trading volume rising to $493 million, nearly double that of the third quarter. Transaction revenue for institutional investors also grew significantly, doubling to $36.7 million. Consumer transactions grew 164% to more than $29 billion. In addition, subscription and services revenue reached $375.4 million, mainly driven by stablecoin cryptocurrency and blockchain rewards.

These impressive results contributed to Coinbase’s (COIN) share price rising 12.7% to $186.7 in over-the-counter trading. This positive sentiment follows an 8-day 41.2% rally driven by investor anticipation of strong financial performance. Analysts such as JPMorgan have further boosted this optimism with a recent upgrade.

Coinbase itself highlighted that it exceeded its 2023 Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) targets, stating, “We generated net income of $95 million and positive Adjusted EBITDA in all four quarters, totaling nearly $1 billion.” However, the company warns of “moderate headcount growth” and possible cost increases in 2024.