NASDAQ$CCB

Coastal Financial Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Coastal Financial's performance was impacted by unanticipated expenses and strategic investments in technology, yet the company sustained growth and improved credit quality.

Coastal Financial Corporation reported a net income of $6.8 million, or $0.50 per diluted common share, for Q1 2024. The results were influenced by $2.3 million in unanticipated expenses and continued investments in technology to enhance BaaS infrastructure. Despite these factors, the company saw growth in total assets, loans, and deposits.

  • Net income reached $6.8 million, with earnings per diluted share at $0.50.
  • Total assets grew to $3.87 billion, marking a 3.0% increase.
  • Total loans increased to $3.20 billion, reflecting a 5.7% growth.
  • Deposits rose to $3.46 billion, showing a 3.1% increase.

Headline financials

Total Revenue

$148M

Previous: $104M+42.5%
EPS (adj)

$0.50

Previous: $0.91-45.1%
Capital Expenditures

-$1.79M

Previous: -$284K-528.9%
Free Cash Flow

$5.01M

Previous: $12.1M-58.6%
Net Income

$6.8M

Previous: $12.4M-45.1%
Operating Income

$24.3M

Previous: $38.7M-37.3%
Gross Profit

$64.4M

Previous: $59.8M+7.7%
Stock-Based Comp

$1.18M

Previous: $1.05M+12.4%

Revenue & EPS history

Coastal Financial · Revenue · Quarterly

$148M

Q1 2024+42.5%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Coastal Financial · $60.3M total across 2 segments · Q3 2023

  • CCBX
    $41M+30.3%
  • Community Bank
    $19.3M-15.1%

Forward guidance

Coastal Financial anticipates that investments in technology and the challenges from the economic environment will continue to impact earnings in the short term. However, they believe they are positioning themselves for long term success.

Tailwinds

  • Technology investments are expected to increase automation.
  • Automation aims to enhance operational efficiency.
  • Improved efficiency is expected to reduce labor costs.
  • Automation is intended to make the business more scalable.
  • The company anticipates being better able to manage expenses in the future.

Headwinds

  • Technology investments require significant upfront expense.
  • Economic environment poses ongoing challenges.
  • Short-term earnings may be negatively impacted.
  • Investments include the costs associated with acquiring and implementing advanced technologies.
  • Economic environment impacted net income for the quarter ended March 31, 2024

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.7%

Avg return

30 days after

69%

24 / 35 earnings

Positive

+10.4%

Q1 2023

Best reaction

-9.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.0%-15.2%-18.0%
Q4 2025+0.1%-11.3%-26.5%
Q3 2025-3.4%-1.3%+2.8%
Q1 2025+0.3%+3.7%+3.8%
Q4 2024+6.8%+0.4%-2.6%
Q3 2024+10.4%+8.2%+32.1%
Q2 2024+0.1%-7.0%-0.5%
Q1 2024-4.7%+3.2%+6.0%
Q4 2023-6.6%-8.8%-10.2%
Q3 2023-9.0%-9.7%-1.9%
Q2 2023-3.0%-6.2%-8.3%
Q1 2023+10.4%+2.8%+8.2%
Q4 2022+3.9%+8.4%+5.2%
Q3 2022+9.9%+15.6%+18.4%
Q2 2022+4.6%+3.8%+2.9%
Q1 2022+1.1%-0.0%-4.0%
Q4 2021-3.9%+1.8%-2.9%
Q3 2021+3.7%+11.3%+27.0%
Q2 2021+3.1%+1.5%+3.7%
Q1 2021+5.7%+7.2%+11.9%
Q4 2020-1.7%-3.7%+31.8%
Q3 2020+7.0%+15.7%+32.1%
Q2 2020-2.8%-2.1%+0.7%
Q1 2020+8.6%-3.3%+17.8%
Q4 2019+1.6%+2.3%-4.2%
Q3 2019+0.3%-0.1%+12.0%
Q2 2019+4.2%+3.5%-3.4%
Q1 2018-0.1%-2.4%-2.5%
Q1 2019+1.5%-0.8%-1.6%
Q2 2018+6.8%+7.1%+2.3%
Q4 2017+6.8%+7.1%+2.3%
Q4 2018+0.9%-2.5%+10.1%
Q3 2017-1.1%+1.0%-13.3%
Q3 2018-4.6%-0.9%-4.4%
Q2 2017+2.3%+5.3%+3.8%
Q1 2017

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