Blockchain infrastructure company Coinbase (NASDAQ: COIN) will be reporting earnings this Thursday after market hours. Here’s what investors should know.
Coinbase missed analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $1.50 billion, up 3.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ number of monthly transacting users estimates and a significant miss of analysts’ revenue estimates. It reported 8.7 million monthly active users, up 6.1% year on year.
Is Coinbase a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Coinbase’s revenue to grow 48.3% year on year to $1.79 billion, slowing from the 78.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.19 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 missed Wall Street’s revenue estimates three times over the last two years.
Looking at Coinbase’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Coursera reported revenues up 10.3%, topping estimates by 2.1%. Coursera traded down 12.7% following the results.
Read our full analysis of Booking’s results here and Coursera’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Coinbase is up 6.3% during the same time and is heading into earnings with an average analyst price target of $381.26 (compared to the current share price of $355.10).
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