Cryptocurrency exchange Coinbase (NASDAQ:COIN) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Coinbase missed analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $1.21 billion, up 78.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ number of monthly transacting users estimates. It reported 7.8 million monthly active users, up 16.4% year on year.
Is Coinbase a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Coinbase’s revenue to grow 95.2% year on year to $1.86 billion, improving from the 51.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Coinbase has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 9.3% on average.
Looking at Coinbase’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 11.8%, meeting analysts’ expectations, and Lyft reported revenues up 26.6%, falling short of estimates by 0.9%. Alphabet traded down 7.2% following the results.
Read our full analysis of Alphabet’s results here and Lyft’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 9.8% on average over the last month. Coinbase is up 6% during the same time and is heading into earnings with an average analyst price target of $295.68 (compared to the current share price of $270.75).
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