Coinbase Global Inc, the popular cryptocurrency trading platform, is set to release its fourth-quarter financial results after market close on Thursday. Investors and analysts are eagerly awaiting the report, as it will provide insights into the company’s performance during the final months of 2021.
According to analysts’ estimates, Coinbase is expected to report fourth-quarter revenue of $822.36 million. This would be an increase compared to the $629.11 million in revenue reported in the same period last year. It’s worth noting that Coinbase has surpassed analysts’ revenue estimates for the past four quarters, indicating strong performance.
In terms of earnings per share, analysts predict a loss of 1 cent for the fourth quarter, an improvement from the loss of $2.46 reported in the year-ago period. However, Coinbase has missed earnings per share estimates from analysts in four of the last seven quarters.
Coinbase did not provide specific guidance for total revenue in the fourth quarter, but it mentioned that subscription and services revenue is expected to be flat quarter-over-quarter. In the third quarter, subscription and services revenue was $334.4 million, unchanged from the previous quarter.
Analysts have differing views on Coinbase’s outlook. Oppenheimer recently upgraded shares of Coinbase from Perform to Outperform, citing a favorable outcome in an ongoing lawsuit with the Securities and Exchange Commission (SEC). They also believe that the approval of Bitcoin exchange-traded funds (ETFs) could have a positive impact on Coinbase.
On the other hand, JPMorgan analyst Kenneth B. Worthington downgraded shares of Coinbase from Neutral to Underweight. Worthington expressed concerns about regulatory risks and the underwhelming start to Bitcoin ETF trading. However, he acknowledged Coinbase’s strong position in the cryptocurrency sector.
Other analysts have highlighted Coinbase’s potential for growth. Needham analyst John Todaro raised the price target for Coinbase and added the stock to the Conviction List. He praised Coinbase’s product growth, international expansion, and the launch of the Base Ethereum Layer 2 chain.
In addition to the earnings figures, investors will be closely watching the launch of Bitcoin ETFs, as it will have significant implications for Coinbase. As the custodian for numerous approved ETFs, Coinbase could benefit from increased ETF trading activity. However, some see the new Bitcoin ETFs as competitors for retail investors seeking Bitcoin exposure.
International expansion and diversification of cryptocurrencies are also areas of focus for Coinbase. The company is expected to seek future growth through expansion into new markets and the addition of more digital assets.
Coinbase shares have performed well in recent months, with a 170% gain in the last year. This outperforms the 132% gain for Bitcoin during the same period.
Overall, Coinbase’s fourth-quarter financial results will provide important insights into the company’s performance and its outlook for the future. Investors and analysts will be closely monitoring the report to gauge Coinbase’s position in the rapidly evolving cryptocurrency market.
