NASDAQ$COIN

Coinbase Global Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Coinbase's Q3 2024 results reflected solid performance amidst softer market conditions, driven by revenue diversification and progress in crypto utility and regulatory clarity.

Coinbase reported a solid Q3 2024 with $1.2 billion in total revenue and $75 million in net income. The company achieved its 7th consecutive quarter of positive Adjusted EBITDA, reaching $449 million. Growth in staking, on-platform USDC, and custody helped diversify revenue, while advancements in stablecoin integration and the Base network contributed to crypto utility.

  • Total revenue was $1.2 billion, a 17% decrease Q/Q.
  • Net income reached $75 million, inclusive of $121 million in pre-tax losses from crypto asset investments.
  • Adjusted EBITDA was $449 million, marking the 7th consecutive quarter of positive adjusted EBITDA.
  • The company ended the quarter with $8.2 billion in $USD resources, up $417 million Q/Q.

Headline financials

Total Revenue

$1.21B

Previous: $674M+78.8%
EPS

$0.28

Previous: -$0.01+2900.0%
Capital Expenditures

$0.00

Previous: -$533K+100.0%
Free Cash Flow

$75.5M

Previous: -$2.8M+2798.2%
Net Income

$75.5M

Previous: -$2.27M+3433.1%
Operating Income

$170M

Previous: -$79.8M+312.4%
Gross Profit

$1.21B

Previous: $674M+78.8%
Cash & Equivalents

$7.72B

Previous: $5.1B+51.4%
Total Assets

$291B

Previous: $127B+128.2%
Stock-Based Comp

$248M

No prior period

Revenue & EPS history

Coinbase · Revenue · Quarterly

$1.21B

Q3 2024+78.8%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
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 Q4 subscription and services revenue to be within $505-$580 million. Technology & development and general & administrative expenses are expected to range from $690-$730 million. Sales and marketing expenses are projected to be between $170-$220 million.

Tailwinds

  • The company updated its vesting schedule for new awards to achieve linear expense recognition.
  • Future stock-based compensation expenses related to annual grants will be primarily driven by our employee population rather than our vesting schedule.
  • Sales and marketing expenses are expected to be in the range of $170-$220 million, primarily driven by USDC rewards expense related to higher on platform balances and higher brand spend, partially attributable to our NBA partnership.
  • Transaction revenue for October is estimated to be approximately $190 million.
  • The company will host a conference call to discuss the results for the third quarter 2024 on October 30, 2024 at 2:30 pm PT.

Headwinds

  • Q4 range reflects certain headwinds, including an observed 10% decline in the average price of Ethereum in October as compared to Q3 average and interest rate cuts reflecting market expectations.
  • Variable marketing costs can fluctuate greatly depending on USDC assets on platform, market trends, and the opportunities available that meet our customer cost of acquisition targets.
  • Estimating October total transaction revenue will be approximately $190 million, caution is urged in extrapolating these estimated results.
  • We expect technology & development and general & administrative expenses to be in the range of $690-$730 million.
  • We expect Q4 subscription and services revenue to be within $505-$580 million.

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 2024

Historical avgQ3 2024

-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

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