Blockchain infrastructure company Coinbase (NASDAQ:COIN) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Coinbase beat analysts’ revenue expectations by 22% last quarter, reporting revenues of $2.27 billion, up 138% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and strong growth in its users. It reported 8.4 million monthly active users, up 20% 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 28.8% year on year to $2.11 billion, slowing from the 112% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.98 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 11.2% on average.
Looking at Coinbase’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Robinhood delivered year-on-year revenue growth of 50%, beating analysts’ expectations by 1.2%, and EverQuote reported revenues up 83%, topping estimates by 5.2%. Robinhood traded down 5.2% following the results while EverQuote was also down 12.2%.
Read our full analysis of Robinhood’s results here and EverQuote’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 20.6% on average over the last month. Coinbase is up 32% during the same time and is heading into earnings with an average analyst price target of $259 (compared to the current share price of $200).
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