Coinbase GlobalLong
COINBASE - BULLISH SCENARIO
Coinbase (NASDAQ: COIN) exceeded Q3 expectations with a better-than-expected EPS and revenue. However, it saw a second consecutive quarter of declining trading volumes, causing after-hours shares to drop over 4%.
In Q3, EPS was ($0.01), surpassing the consensus estimate of ($0.55). Revenue reached $674.15 million, beating the consensus estimate of $650.97 million but declining 5% from the previous quarter.
Q3 total transaction revenue fell 12%, with a 17% drop in total trading volume. Q3 subscription and services revenue remained flat at $334 million.
For Q4, the company expects subscription and services revenue to stay roughly the same as Q3 and transaction expenses as a percentage of net revenue in the mid-teens.
Coinbase aims to achieve meaningful positive adjusted EBITDA in 2023, revising its goal from improving 2023 adjusted EBITDA in absolute dollar terms over 2022.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
In Q3, EPS was ($0.01), surpassing the consensus estimate of ($0.55). Revenue reached $674.15 million, beating the consensus estimate of $650.97 million but declining 5% from the previous quarter.
Q3 total transaction revenue fell 12%, with a 17% drop in total trading volume. Q3 subscription and services revenue remained flat at $334 million.
For Q4, the company expects subscription and services revenue to stay roughly the same as Q3 and transaction expenses as a percentage of net revenue in the mid-teens.
Coinbase aims to achieve meaningful positive adjusted EBITDA in 2023, revising its goal from improving 2023 adjusted EBITDA in absolute dollar terms over 2022.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
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