Coinbase Global (COIN - Free Report) reported first-quarter 2023 earnings of 15 cents per share against the Zacks Consensus Estimate of a loss of $1.44. The company had reported a loss of $1.98 per share a year ago.
In the quarter under review, Coinbase witnessed lower trading volumes in both retail and institutional as a result of both lower crypto asset prices and volatility that began in late 2021.
Behind the Headline
Total revenues of $773 million beat the Zacks Consensus Estimate by 18.4%. However, the top line declined 33.7% year over year, reflecting decreases in transaction revenues, partially offset by an increase in subscription and services revenues.
The trading volume of $145 billion declined 53.1% year over year, attributable to a decline in the crypto market cap.
Total operating expenses declined 47.9% year over year to $896.4 billion, attributable to lower transaction expenses, sales and marketing as well as other operating expenses.
Adjusted EBITDA was $284 million in the reported quarter versus $20 million in the year-ago quarter.
Financial Update
As of Mar 31, 2023, cash and cash equivalents were $5 billion, up 13.4% from the figure at 2022 end. Total assets were $139.3 billion, up 55.4% from the level at 2022 end.
At the end of first-quarter 2023, the long-term debt of the company was $3.4 billion, up 0.1% from 2022 end.
Total shareholders’ equity was $5.7 billion at the end of first-quarter 2023, up 4% from the value as of Dec 31, 2022.
Cash used in operations was $463.1 million in the first quarter of 2023 versus cash from operations of $691.6 million in the year-ago quarter.
Q2 2023 Guidance
Coinbase estimates subscription and services revenues of about $300 million.
Transaction expenses are expected to be in the mid-teens as a percentage of net revenues.
Sales and marketing expenses are expected to be in the range of $80-$90 million and restructuring expenses are expected to be about $15 million.
Technology and development as well as general and administrative expenses are estimated to be between $600 million and $650 million.
Zacks Rank
Coinbase Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Nasdaq, Inc. (NDAQ - Free Report) reported first-quarter 2023 adjusted earnings per share of 69 cents, beating the Zacks Consensus Estimate by 6.1% as well as our estimate of 62 cents. The bottom line improved 4.5% year over year. Revenues of $914 million increased 2% year over year and beat the Zacks Consensus Estimate by 0.2%.
Annualized Recurring Revenue (ARR) increased 7% year over year. Annualized SaaS revenues increased 11% and represented 36% of ARR. Operating margin of 52% remained unchanged year over year.
Nasdaq expects 2023 non-GAAP operating expenses in the range of $1.78 billion to $1.84 billion compared with the prior expectation of $1.77 billion to $1.85 billion. Nasdaq forecasts non-GAAP tax rate in the range of 24-26% in 2023.
MarketAxess Holdings Inc. (MKTX - Free Report) reported first-quarter 2023 earnings per share of $1.96, which outpaced the Zacks Consensus Estimate by 3.7% and our estimate of $1.86. The bottom line advanced 13.3% year over year. Total revenues improved 9% year over year to $203.2 million in the quarter under review. The top line surpassed the consensus mark by 1.4% and our estimate of $200.2 million.
Commission revenues rose 9.6% year over year to $182 million in the first quarter. Information services revenues attained a record figure of $11 million, up 12.2% year over year. Meanwhile, post-trade services revenues of $10 million inched up 1% year over year in the quarter under review. MarketAxess’s U.S. high-grade trading volume climbed 14.8% year over year to $392.7 billion.
CME Group (CME - Free Report) reported first-quarter 2023 record adjusted earnings per share of $2.42, which beat the Zacks Consensus Estimate by 2.5% and our estimate of $2.02 per share. The bottom line increased 14.7% year over year. CME Group’s revenues of $1.4 billion increased 4.8% year over year. The top line beat the Zacks Consensus Estimate by 1.9% and our estimate of $1.2 billion.
Average daily volume (ADV) was 26.9 million contracts. Non-U.S. ADV reached 7.2 million contracts, which included the second-highest quarterly ADV across EMEA, Asia and Latin America. ADV increased in three of its six asset classes.
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Coinbase Global (COIN - Free Report) reported first-quarter 2023 earnings of 15 cents per share against the Zacks Consensus Estimate of a loss of $1.44. The company had reported a loss of $1.98 per share a year ago.
In the quarter under review, Coinbase witnessed lower trading volumes in both retail and institutional as a result of both lower crypto asset prices and volatility that began in late 2021.
Behind the Headline
Total revenues of $773 million beat the Zacks Consensus Estimate by 18.4%. However, the top line declined 33.7% year over year, reflecting decreases in transaction revenues, partially offset by an increase in subscription and services revenues.
The trading volume of $145 billion declined 53.1% year over year, attributable to a decline in the crypto market cap.
Total operating expenses declined 47.9% year over year to $896.4 billion, attributable to lower transaction expenses, sales and marketing as well as other operating expenses.
Adjusted EBITDA was $284 million in the reported quarter versus $20 million in the year-ago quarter.
Financial Update
As of Mar 31, 2023, cash and cash equivalents were $5 billion, up 13.4% from the figure at 2022 end. Total assets were $139.3 billion, up 55.4% from the level at 2022 end.
At the end of first-quarter 2023, the long-term debt of the company was $3.4 billion, up 0.1% from 2022 end.
Total shareholders’ equity was $5.7 billion at the end of first-quarter 2023, up 4% from the value as of Dec 31, 2022.
Cash used in operations was $463.1 million in the first quarter of 2023 versus cash from operations of $691.6 million in the year-ago quarter.
Q2 2023 Guidance
Coinbase estimates subscription and services revenues of about $300 million.
Transaction expenses are expected to be in the mid-teens as a percentage of net revenues.
Sales and marketing expenses are expected to be in the range of $80-$90 million and restructuring expenses are expected to be about $15 million.
Technology and development as well as general and administrative expenses are estimated to be between $600 million and $650 million.
Zacks Rank
Coinbase Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Nasdaq, Inc. (NDAQ - Free Report) reported first-quarter 2023 adjusted earnings per share of 69 cents, beating the Zacks Consensus Estimate by 6.1% as well as our estimate of 62 cents. The bottom line improved 4.5% year over year. Revenues of $914 million increased 2% year over year and beat the Zacks Consensus Estimate by 0.2%.
Annualized Recurring Revenue (ARR) increased 7% year over year. Annualized SaaS revenues increased 11% and represented 36% of ARR. Operating margin of 52% remained unchanged year over year.
Nasdaq expects 2023 non-GAAP operating expenses in the range of $1.78 billion to $1.84 billion compared with the prior expectation of $1.77 billion to $1.85 billion. Nasdaq forecasts non-GAAP tax rate in the range of 24-26% in 2023.
MarketAxess Holdings Inc. (MKTX - Free Report) reported first-quarter 2023 earnings per share of $1.96, which outpaced the Zacks Consensus Estimate by 3.7% and our estimate of $1.86. The bottom line advanced 13.3% year over year. Total revenues improved 9% year over year to $203.2 million in the quarter under review. The top line surpassed the consensus mark by 1.4% and our estimate of $200.2 million.
Commission revenues rose 9.6% year over year to $182 million in the first quarter. Information services revenues attained a record figure of $11 million, up 12.2% year over year. Meanwhile, post-trade services revenues of $10 million inched up 1% year over year in the quarter under review. MarketAxess’s U.S. high-grade trading volume climbed 14.8% year over year to $392.7 billion.
CME Group (CME - Free Report) reported first-quarter 2023 record adjusted earnings per share of $2.42, which beat the Zacks Consensus Estimate by 2.5% and our estimate of $2.02 per share. The bottom line increased 14.7% year over year. CME Group’s revenues of $1.4 billion increased 4.8% year over year. The top line beat the Zacks Consensus Estimate by 1.9% and our estimate of $1.2 billion.
Average daily volume (ADV) was 26.9 million contracts. Non-U.S. ADV reached 7.2 million contracts, which included the second-highest quarterly ADV across EMEA, Asia and Latin America. ADV increased in three of its six asset classes.
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One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
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