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Coinbase Global (COIN) Q4 Earnings & Revenues Lag Estimates
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Coinbase Global’s (COIN - Free Report) fourth-quarter 2021 adjusted earnings of $3.32 per share missed the Zacks Consensus Estimate by 70.3%.
In the quarter, Coinbase witnessed higher trading volumes in both retail and institutional with diversification beyond Bitcoin into Ethereum and other crypto assets, driving higher transaction revenues, subscription and services revenues.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Total revenues came in at $2.5 billion and missed the Zacks Consensus Estimate by 39.3%. The top line increased about five-fold year over year, reflecting increases in transaction revenues, subscription and services revenues as well as other revenues.
Monthly Transacting Users (MTUs) grew to 11.4 million, up more than four-fold year over year driven by higher retail and institutional volume. Verified Users grew to 89 million.
The trading volume of $547 billion was up more than six fold year over year. Total trading volume continued to diversify beyond Bitcoin into Ethereum and other crypto assets.
Total operating expenses increased more than four-fold year over year to $1.6 billion, attributable to an increase in transaction expense, technology and development, sales and marketing and general and administrative and other operating expense.
Adjusted EBITDA was $1.2 billion in the reported quarter, up more than four fold year over year.
Financial Update
As of Dec 31, 2021, cash and cash equivalents were $7.1 billion, up more than five-fold from the figure at 2020 end. Total assets were $18.5 billion, up more than three-fold from the level at 2020 end.
At the end of 2021, the long-term debt of the company was $3.4 billion.
Total shareholders’ equity was $5.4 billion at the end of the reported quarter, up more than six-fold from the value on Dec 31, 2020.
Cash from operations increased more than three fold year over year to $10.7 billion in 2021.
Q1 Guidance
Coinbase estimates retail MTU and total Trading volume to be lower in first-quarter 2022 compared with fourth-quarter 2021.
Transaction expenses are expected to be in the low-to-mid twenties as a percent of net revenues.
Operating expenses will be between $1.2 and $1.3 billion. Sales and marketing will be 15-20% of net revenues
2022 Guidance
The annual average retail MTU is expected between 5 and 15 million.
While subscription and services revenues are expected to strongly grow over 2021, transaction expenses, as a percentage of revenues, are expected to be in the low 20%. Sales and marketing expenses, as a percentage of revenues, are expected to be about 12-15%. Technology & development and general & administrative expenses are projected to be between $4.25 and $5.25 billion.
Adjusted EBITDA losses are expected to be about $500 million.
Fourth-quarter earnings of Nasdaq (NDAQ - Free Report) and Cboe Global Markets (CBOE - Free Report) beat the Zacks Consensus Estimate while that of MarketAxess Holdings (MKTX - Free Report) missed expectations.
Nasdaq’s fourth-quarter 2021 adjusted earnings per share of $1.93 beat the Zacks Consensus Estimate of $1.78 by nearly 8.4%. The bottom line improved 21% year over year. Revenues of $885 million increased 12% year over year. The Nasdaq Stock Market welcomed 1,000 new company listings in 2021, including 752 IPOs representing $181 billion in capital raised.
Nasdaq expects its 2022 non-GAAP operating expense in the range of $1.68 billion to $1.76 billion.
Cboe Global reported fourth-quarter 2021 adjusted earnings of $1.70 per share, which outpaced the Zacks Consensus Estimate by 11.1% and soared 41% year over year. Total adjusted revenues of Cboe Global amounted to $390.5 million for the fourth quarter, which improved 27% year over year on the back of growth in transaction and clearing fees, access and capacity fees, market data fees, and other revenues. The top line beat the consensus mark by 0.9%.
Cboe Global estimates total organic net revenue growth within 5-7 percentage points this year. Adjusted operating expenses are projected between $617 million and $625 million, indicating an increase from the 2021 base of $531 million.
MarketAxess’ fourth-quarter 2021 earnings per share of $1.37 missed the Zacks Consensus Estimate of $1.43. Also, the bottom line declined from $1.91 per share a year ago. Total revenues decreased 3.6% to $165.1 million but marginally beat the Zacks Consensus Estimate of $164 million. Emerging markets volume increased 15% year over year to $160.6 billion. For the fourth quarter, the company announced active total client firms of 1,877, while international client firms were recorded at 956. Total credit category’s trading volumes decreased to $604.4 billion from $639.6 billion in the prior-year period.
MarketAxess projects expenses in the range of $385-$415 million. Capital expenditure for 2022 is expected within $58-$62 million.
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Coinbase Global (COIN) Q4 Earnings & Revenues Lag Estimates
Coinbase Global’s (COIN - Free Report) fourth-quarter 2021 adjusted earnings of $3.32 per share missed the Zacks Consensus Estimate by 70.3%.
In the quarter, Coinbase witnessed higher trading volumes in both retail and institutional with diversification beyond Bitcoin into Ethereum and other crypto assets, driving higher transaction revenues, subscription and services revenues.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote
Behind the Headline
Total revenues came in at $2.5 billion and missed the Zacks Consensus Estimate by 39.3%. The top line increased about five-fold year over year, reflecting increases in transaction revenues, subscription and services revenues as well as other revenues.
Monthly Transacting Users (MTUs) grew to 11.4 million, up more than four-fold year over year driven by higher retail and institutional volume. Verified Users grew to 89 million.
The trading volume of $547 billion was up more than six fold year over year. Total trading volume continued to diversify beyond Bitcoin into Ethereum and other crypto assets.
Total operating expenses increased more than four-fold year over year to $1.6 billion, attributable to an increase in transaction expense, technology and development, sales and marketing and general and administrative and other operating expense.
Adjusted EBITDA was $1.2 billion in the reported quarter, up more than four fold year over year.
Financial Update
As of Dec 31, 2021, cash and cash equivalents were $7.1 billion, up more than five-fold from the figure at 2020 end. Total assets were $18.5 billion, up more than three-fold from the level at 2020 end.
At the end of 2021, the long-term debt of the company was $3.4 billion.
Total shareholders’ equity was $5.4 billion at the end of the reported quarter, up more than six-fold from the value on Dec 31, 2020.
Cash from operations increased more than three fold year over year to $10.7 billion in 2021.
Q1 Guidance
Coinbase estimates retail MTU and total Trading volume to be lower in first-quarter 2022 compared with fourth-quarter 2021.
Transaction expenses are expected to be in the low-to-mid twenties as a percent of net revenues.
Operating expenses will be between $1.2 and $1.3 billion. Sales and marketing will be 15-20% of net revenues
2022 Guidance
The annual average retail MTU is expected between 5 and 15 million.
While subscription and services revenues are expected to strongly grow over 2021, transaction expenses, as a percentage of revenues, are expected to be in the low 20%. Sales and marketing expenses, as a percentage of revenues, are expected to be about 12-15%. Technology & development and general & administrative expenses are projected to be between $4.25 and $5.25 billion.
Adjusted EBITDA losses are expected to be about $500 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
Fourth-quarter earnings of Nasdaq (NDAQ - Free Report) and Cboe Global Markets (CBOE - Free Report) beat the Zacks Consensus Estimate while that of MarketAxess Holdings (MKTX - Free Report) missed expectations.
Nasdaq’s fourth-quarter 2021 adjusted earnings per share of $1.93 beat the Zacks Consensus Estimate of $1.78 by nearly 8.4%. The bottom line improved 21% year over year. Revenues of $885 million increased 12% year over year. The Nasdaq Stock Market welcomed 1,000 new company listings in 2021, including 752 IPOs representing $181 billion in capital raised.
Nasdaq expects its 2022 non-GAAP operating expense in the range of $1.68 billion to $1.76 billion.
Cboe Global reported fourth-quarter 2021 adjusted earnings of $1.70 per share, which outpaced the Zacks Consensus Estimate by 11.1% and soared 41% year over year. Total adjusted revenues of Cboe Global amounted to $390.5 million for the fourth quarter, which improved 27% year over year on the back of growth in transaction and clearing fees, access and capacity fees, market data fees, and other revenues. The top line beat the consensus mark by 0.9%.
Cboe Global estimates total organic net revenue growth within 5-7 percentage points this year. Adjusted operating expenses are projected between $617 million and $625 million, indicating an increase from the 2021 base of $531 million.
MarketAxess’ fourth-quarter 2021 earnings per share of $1.37 missed the Zacks Consensus Estimate of $1.43. Also, the bottom line declined from $1.91 per share a year ago. Total revenues decreased 3.6% to $165.1 million but marginally beat the Zacks Consensus Estimate of $164 million. Emerging markets volume increased 15% year over year to $160.6 billion. For the fourth quarter, the company announced active total client firms of 1,877, while international client firms were recorded at 956. Total credit category’s trading volumes decreased to $604.4 billion from $639.6 billion in the prior-year period.
MarketAxess projects expenses in the range of $385-$415 million. Capital expenditure for 2022 is expected within $58-$62 million.