- Coinbase reported 1Q revenue at $1.64 billion, significantly surpassing last year’s revenue of $772.5 million as well as the estimated revenue of $1.32 billion.
- Transaction revenue also saw a substantial increase, bringing in $1.08 billion compared to last year’s $374.7 million and the estimated $775 million.
- The company’s subscription and services revenue also rose by 41% year on year, raking in $510.9 million, once again outpacing the estimate of $458.1 million.
- Other sources of revenue for the company were nearly in line with estimates at $49.9 million, showcasing a year on year growth of 38%.
- EPS closed at $4.40, a stark contrast from the loss per share of 34c y/y, and handily beating the estimated $1.07.
- Trading volumes soared to $312 billion, significantly higher than the $145 billion y/y figure, and passed the estimated $285.51 billion.
- The breakdown of trading volumes showed $56 billion in retail trading volume, overpassing the estimated $53.12 billion, and a considerable $256 billion in institutional trading volume, overstepping the estimated $235.06 billion.
- Coinbase also had a strong Adjusted Ebitda at $1.01 billion, far surpassing the estimate of $607.5 million.
- Looking at the future, Coinbase predicts 2Q subscription & services revenue to be somewhere between $525 million and $600 million, slightly over the estimated $489.1 million.
- The court has denied the request to dismiss the rest of the SEC case currently engaged with Coinbase.
- The company’s shares have experienced a 3.4% decrease in post-market trading, now valued at $221.15.
- The evaluations from analysts include 9 buys, 13 holds, and 5 sell recommendations.
Coinbase Global on Smartkarma
On Smartkarma, analyst coverage of Coinbase Global by Baptista Research highlights the paradox of its market dominance and regulatory hurdles. In their report titled “Coinbase Global: Paradox of Its Market Dominance and Regulatory Hurdles! – Major Drivers,” Baptista Research delves into the key drivers impacting the leading cryptocurrency exchange company. The report applauds Coinbase’s impressive cost cuts of 45% year-over-year, resulting in a positive net income of $95 million for the year, alongside substantial total revenue and adjusted EBITDA figures. CEO Brian Armstrong attributes the company’s success to long-term focus, regulatory compliance, and operational efficiency, despite the challenging crypto market conditions. Baptista Research aims to provide insights into factors influencing Coinbase’s future stock price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Coinbase Global Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Coinbase Global is showing promising signs for the long term. With a Growth score of 3, the company is positioned well for future expansion and development in the cryptocurrency market. Additionally, Coinbase Global’s high Momentum score of 5 indicates significant positive market sentiment and strong performance trends in the near future.
Furthermore, the company demonstrates solid Resilience with a score of 4, suggesting the ability to withstand market fluctuations and external challenges. While the Value score of 2 may indicate some room for improvement in terms of valuation, Coinbase Global’s overall outlook appears favorable, especially considering its core focus on providing financial solutions through its cryptocurrency trading platform.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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