Highlights:

  • Coinbase's Q3FY24 revenue surged 78.9%, reaching USD 1,205.9 million, driven by rising crypto asset prices.
  • Net income for Q3FY24 reached USD 75.0 million, reversing last year's loss of USD 2.3 million.
  • Total cash and equivalents grew by 50.3%, reaching USD 7,723.8 million due to strong cash inflows.

 Coinbase Global, Inc. (NASDAQ:COIN), a secure online platform for cryptocurrency, is a holding company of Coinbase, Inc. and its subsidiaries. It offers a platform for users to discover, trade, stake, store, spend, earn, and manage their crypto assets.

For the third quarter of the financial year 2024 (3QFY24) COIN’s total revenue increased by 78.9% YoY, to USD 1,205.9 million. It was driven by higher average native units for staking, custody, and on-platform USDC, alongside rising crypto asset prices. Net income ascribed to common shareholders increased to USD 75.0 million in Q3FY24, compared to a loss of USD 2.3 million in Q3FY23.

Net operating cash inflows for the year-to-date (YTD) grew by 71.6%, to USD 1,592.2 million, due to higher income, though partially offset by unfavourable working capital changes. Total cash and cash equivalents increased by 50.3%, to USD 7,723.8 million in Q3FY24. It is due to positive cash inflows from operating and financing activities. However, it was partially offset by cash outflows from investing activities.

Recent Business Update

In October, COIN revealed an expansion of its crypto futures services via a partnership with Coinbase Derivatives, LLC, a CFTC-registered futures exchange. U.S. users can now trade Bitcoin, nano Bitcoin, Ethereum, and nano Ether futures directly on the Webull platform.

Company Outlook

Coinbase expects Q4FY24 subscription and services revenue to be between USD 505-580 million, impacted by factors like Ethereum price declines and interest rate cuts.

Technology and development, along with general and administrative expenses, are projected at USD 690-730 million, including USD 210 million in stock-based compensation. Sales and marketing expenses are expected to range from USD 170-220 million, driven by USDC rewards and brand investments, such as an NBA partnership. Marketing costs may vary depending on market trends and acquisition opportunities.

Top 10 shareholders

The top 10 shareholders of COIN hold approximately 27.96% of the total shares, indicating concentrated ownership. The largest shareholders are The Vanguard Group, Inc. and BlackRock Institutional Trust Company, N.A., with stakes of 8.93% and 4.12%, respectively.

Stock Performance:

The stock has delivered a return of 91.75% over the past three months and 79.10% year-to-date. Currently, it is trading near the upper end of its 52-week range, which spans from USD 114.51 to USD 349.75. As of December 17, 2024, the stock's closing price is USD 311.64.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 17, 2024. The reference data in this report has been partly sourced from EODHD/Others.