NASDAQ$COIN

Coinbase Global Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Coinbase had a strong quarter driven by deeper customer engagement, product innovation, and industry momentum.

Coinbase's Q3 2021 results showed a net revenue of $1.2 billion, driven by $1.1 billion in transaction revenue and $145 million in subscription and services revenue. Net income was $406 million, and Adjusted EBITDA was $618 million. The company saw growth in verified users and retail monthly transacting users (MTUs).

  • Verified Users grew to 73 million and retail Monthly Transacting Users (MTUs) were 7.4 million.
  • Net revenue was $1.2 billion, including $1.1 billion in transaction revenue and $145 million in Subscription and services revenue.
  • Net income was $406 million and Adjusted EBITDA was $618 million.
  • Approximately 28% of retail MTUs both invested and engaged with at least one other product.

Headline financials

Total Revenue

$1.31B

Previous: $315M+316.0%
EPS (adj)

$1.62

Previous: $0.45+260.0%
Capital Expenditures

-$1.63M

Previous: $4.27M-138.1%
Free Cash Flow

$404M

Previous: $204M+98.3%
Net Income

$406M

Previous: $81.3M+399.5%
Operating Income

$292M

Previous: $102M+187.5%
Gross Profit

$1.31B

Previous: $279M+370.9%
Cash & Equivalents

$6.35B

Previous: $766M+729.1%
Total Assets

$18.5B

No prior period
Stock-Based Comp

$264M

Previous: $16.4M+1512.8%

Revenue & EPS history

Coinbase · Revenue · Quarterly

$1.31B

Q3 2021+316%vs Q3 2020
Beat estimate in 3 of 8 quarters(38%)
ActualEstimate

Revenue by segment

Coinbase · $317M total across 2 segments · Q3 2023

  • Interest and Finance Fee Income
    $243M+138.2%
  • Blockchain Rewards
    $74.5M+18.6%

Forward guidance

Coinbase anticipates higher retail MTUs and total trading volume in Q4 as compared to Q3. For full year 2021, the company expects average net transaction revenue per user will be in the high $50’s per month.

Tailwinds

  • Total crypto market capitalization increased roughly 35% in October.
  • Retail MTUs and total trading volume were higher in October.
  • Trends include higher levels of activity among retail traders.
  • Blended average retail fee rates increased in October compared to Q3 levels.
  • Expects average net transaction revenue per user will be in the high $50’s per month.

Headwinds

  • Business is inherently unpredictable, especially in these early days of the cryptoeconomy.
  • Retail MTUs, Trading Volume, and revenue can fluctuate, potentially materially, with crypto asset prices and crypto asset volatility.
  • Tightening full year 2021 outlook scenarios.
  • Assumes moderate-to-high crypto asset price volatility.
  • Sales and marketing expenses will be approximately 10% of net revenue for full-year 2021.

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 Q3 2021

Historical avgQ3 2021

-2.8%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.3%

Avg return

30 days after

32%

8 / 25 earnings

Positive

+20.1%

Q1 2023

Best reaction

-35.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+4.6%-21.0%
Q4 2025+16.5%+16.3%+38.6%
Q3 2025-2.2%-2.8%-17.0%
Q2 2025-16.7%-19.6%-19.4%
Q1 2025-3.6%+27.6%+21.7%
Q4 2024-8.0%-13.2%-38.6%
Q3 2024-18.4%-15.2%+34.8%
Q2 2024-8.9%-13.5%-18.3%
Q1 2024+6.3%+2.0%+7.5%
Q4 2023+12.4%+8.1%+51.1%
Q3 2023+10.3%+14.5%+71.9%
Q2 2023-3.5%-2.6%-13.8%
Q1 2023+20.1%+24.2%+33.1%
Q4 2022-6.2%-10.4%+1.7%
Q3 2022-3.1%-16.3%-21.5%
Q2 2022-4.0%-7.7%-25.4%
Q1 2022-35.7%-18.7%-23.6%
Q4 2019+6.2%+8.3%+4.0%
Q4 2021+2.4%+13.6%+8.1%
Q3 2020-5.9%-3.4%-28.4%
Q3 2021-7.2%-3.1%-25.4%
Q2 2020-4.9%-4.8%-7.9%
Q2 2021-0.7%-6.9%-8.6%
Q4 2020-6.4%-15.2%-15.5%
Q1 2021-8.9%-15.7%-21.0%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro