App EconomyFintech Rising crypto prices are impacting the 4Q results of Coinbase/Robinhood January 26, 2024 Tom Grant January 26, 2024 This was first published January 24, in our weekly newsletter Apptopia Insight. To receive insights like this weekly, sign up here. In December 2023, Coinbase (COIN) mobile growth bounced positive for the first time in two years (+47% YoY). Meanwhile, Apptopia estimated sessions for Robinhood (HOOD) grew in 4Q, up +2% QoQ and +16% YoY, an acceleration from +14% YoY in 3Q23. What was the commonality? The price of bitcoin rose +73% YoY. Coinbase grows new users in 4Q23 Rising crypto prices look to be improving the outlook for Coinbase and Robinhood. While COIN shares turned down after 3Q23 earnings because of a decrease in Consumer Trading Volume and a subsequent decline in mobile engagement, 4Q23 signaled the first positive YoY growth in Coinbase mobile activity (+3%) in two years. This reversal can be attributed to a substantial surge in new mobile users (+47% YoY) during December, fueled by the growth of bitcoin prices (+149% YoY in December). Mobile trends look strong for Coinbase from all angles, as new user growth and transacting users are growing positive. Robinhood faced a sequential decline in transaction-based revenues in 3Q23, despite an increase in mobile sessions (+14% YoY) for the first time in two years. Their shareholder letter attributed this decline to lower crypto volumes, coinciding with flat QoQ crypto prices in 3Q. While Consensus anticipates a continued decline in transaction-based revenues, Apptopia’s analysis suggests that the sequential strengthening of bitcoin in 4Q (+73% YoY versus +31% in 3Q) may act as a catalyst, potentially steering transaction-based revenues positive for Robinhood this quarter Robinhood Mobile sessions grow sequentially with bitcoin prices. Earnings Previews Social companies report over the next two weeks. For a limited time, meet 1:1 with our team for previews on META, SNAP, and PINS. Earnings Previews Tom Grant