Blockchain infrastructure firm Coinbase (NASDAQ: COIN) is set to release its quarterly financial results this Thursday following the market’s close, drawing attention from investors and analysts alike. In the previous quarter, the company exceeded analysts’ revenue expectations by 4.5%, reporting impressive revenues of $1.87 billion—a significant 55.1% increase compared to the same period last year. This robust performance was characterized by strong results in both revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). Additionally, Coinbase reported 9.3 million monthly active users, marking a 19.2% rise year-on-year.
However, predictions for the upcoming quarter paint a different picture. Analysts anticipate a decline in revenue of 19.2% from the previous year, projecting earnings of approximately $1.84 billion—a sharp contrast to the extraordinary 138% increase noted in the same quarter of the previous year. Adjusted earnings per share are expected to be around $0.99.
Over the past month, analysts have largely maintained their estimates for Coinbase, suggesting confidence in the company’s stability as it navigates through market challenges. This cautious optimism comes despite the fact that Coinbase has missed Wall Street’s revenue estimates three times in the past two years, raising questions about its ability to meet current expectations.
In comparison to its consumer internet peers, some of which have already reported their fourth-quarter results, the market sentiment remains varied. For instance, Robinhood experienced a year-on-year revenue growth of 26.5%, but fell short of analyst expectations by 3.9%. In contrast, Electronic Arts posted a remarkable 61.8% growth in revenue, surpassing estimates by 29.4%, although its stock saw a decline of 2.3% after the announcement.
The broader market environment has not been particularly kind to consumer internet stocks, with an average share price decline of 17.3% over the past month. Coinbase has been even more negatively impacted, facing a steep drop of 34.2% in the same period. Currently, analysts have set an average price target of $327.98 for Coinbase shares, which is notably higher than the current trading price of $160.28.
As investors keep a close watch on Coinbase’s upcoming earnings report, discussions around corporate tax changes and potential tariffs add another layer of uncertainty for stakeholders in the consumer internet segment.
