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Coinbase (COIN) Stock on the Rise Since Q4 Earnings Beat
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Shares of Coinbase Global (COIN - Free Report) gained 12.4% in the last two trading sessions after the company’s fourth-quarter 2023 earnings and revenues beat the Zack Consensus Estimate.
COIN reported fourth-quarter 2023 income of $1.04 per share against the Zacks Consensus Estimate of a loss of 9 cents per share and the year-ago loss of $2.46 per share. Coinbase witnessed significant growth in subscription and services revenues as well as low expenses.
Behind the Headline
Total revenues of $954 million beat the Zacks Consensus Estimate by 30.3%. The top line improved 51.7% year over year, reflecting increases in transaction revenues (up 64.3% year over year), as well as subscription and services revenues (up 32.7%).
Higher transition volumes reflect the fact that existing users trade significantly higher volumes supported by growth in the number of users actively trading. Improved institutional transaction revenues reflect continued investment in product offerings. Higher subscription and services revenues reflect stablecoin revenues, interest income and blockchain rewards benefiting from higher interest rates and higher staked balances.
Trading volume of $154 billion increased 6.2% year over year, attributable to a decline in the crypto market cap. Consumer trading volume increased year over year, while institutional trading volume remained flat year over year.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Total operating expenses declined 29.2% year over year to $838.2 million, attributable to lower technology and development and general and administrative.
Adjusted EBITDA was $305 million in the reported quarter versus a loss of $124 million incurred in the year-ago quarter.
Financial Update
As of Dec 31, 2023, cash and cash equivalents were $5.2 billion, up 16.5% from the figure at 2022 end. Total assets were $207 billion, up 2.2% from the level at 2022 end.
At the end of 2023, the long-term debt of the company was $3 billion, down 12.2% from 2022 end.
Total shareholders’ equity was $6.3 billion at the end of 2023, up 15.2% from the value as of Dec 31, 2022.
Cash from operations was $923 million in 2023 versus cash used in operations of $1.6 billion in the year-ago period.
Q1 Guidance
Coinbase estimates subscription and services revenues between $410 million and $480 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 $85-$100 million.
Technology & development and general & administrative expenses together are estimated to increase to $600-650 million.
COIN remains focused on improving 2024 adjusted EBITDA in absolute dollar terms versus 2023.
MarketAxess Holdings Inc. (MKTX - Free Report) reported strong fourth-quarter 2023 results, aided by higher commissions and trading volumes. Continued solid Eurobonds performance further supported its business. The positives were partially offset by an elevated expense level and a lower high-yield credit trading.
Its fourth-quarter 2023 earnings per share of $1.84 beat the Zacks Consensus Estimate by 7%. Moreover, the bottom line increased from $1.58 a year ago.
Total revenues increased 10.9% year over year to $197.2 million in the quarter under review. Also, the top line beat the consensus mark by 0.7%.
Nasdaq (NDAQ - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate by 2.9%. The bottom line improved 12.5% year over year.
Nasdaq’s revenues of $1.1 billion increased 23% year over year. The top line beat the Zacks Consensus Estimate by 5%.
Annualized recurring revenue (ARR) increased 29% year over year. Annualized SaaS revenues increased 23% and represented 35% of ARR. Operating margin of 55% expanded 600 basis points year over year.
Nasdaq expects 2024 non-GAAP operating expenses to be between $2.105 billion and $2.185 billion.
Cboe Global Markets, Inc. (CBOE - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.06 per share, which outpaced the Zacks Consensus Estimate by 2%. The bottom line increased 14% year over year. Total adjusted revenues were $499 million, which improved 9% year over year. However, the top line missed the consensus mark by 1.2%.
Adjusted operating margin came in at 61.6%, which expanded 20 bps year over year. Adjusted EBITDA margin of 64.3% expanded 40 bps year over year.
CBOE anticipates organic total net revenue growth in the range of 5-7% in 2024, in line with medium-term organic total net revenue expectations.
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Coinbase (COIN) Stock on the Rise Since Q4 Earnings Beat
Shares of Coinbase Global (COIN - Free Report) gained 12.4% in the last two trading sessions after the company’s fourth-quarter 2023 earnings and revenues beat the Zack Consensus Estimate.
COIN reported fourth-quarter 2023 income of $1.04 per share against the Zacks Consensus Estimate of a loss of 9 cents per share and the year-ago loss of $2.46 per share. Coinbase witnessed significant growth in subscription and services revenues as well as low expenses.
Behind the Headline
Total revenues of $954 million beat the Zacks Consensus Estimate by 30.3%. The top line improved 51.7% year over year, reflecting increases in transaction revenues (up 64.3% year over year), as well as subscription and services revenues (up 32.7%).
Higher transition volumes reflect the fact that existing users trade significantly higher volumes supported by growth in the number of users actively trading. Improved institutional transaction revenues reflect continued investment in product offerings. Higher subscription and services revenues reflect stablecoin revenues, interest income and blockchain rewards benefiting from higher interest rates and higher staked balances.
Trading volume of $154 billion increased 6.2% year over year, attributable to a decline in the crypto market cap. Consumer trading volume increased year over year, while institutional trading volume remained flat year over year.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote
Total operating expenses declined 29.2% year over year to $838.2 million, attributable to lower technology and development and general and administrative.
Adjusted EBITDA was $305 million in the reported quarter versus a loss of $124 million incurred in the year-ago quarter.
Financial Update
As of Dec 31, 2023, cash and cash equivalents were $5.2 billion, up 16.5% from the figure at 2022 end. Total assets were $207 billion, up 2.2% from the level at 2022 end.
At the end of 2023, the long-term debt of the company was $3 billion, down 12.2% from 2022 end.
Total shareholders’ equity was $6.3 billion at the end of 2023, up 15.2% from the value as of Dec 31, 2022.
Cash from operations was $923 million in 2023 versus cash used in operations of $1.6 billion in the year-ago period.
Q1 Guidance
Coinbase estimates subscription and services revenues between $410 million and $480 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 $85-$100 million.
Technology & development and general & administrative expenses together are estimated to increase to $600-650 million.
COIN remains focused on improving 2024 adjusted EBITDA in absolute dollar terms versus 2023.
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
MarketAxess Holdings Inc. (MKTX - Free Report) reported strong fourth-quarter 2023 results, aided by higher commissions and trading volumes. Continued solid Eurobonds performance further supported its business. The positives were partially offset by an elevated expense level and a lower high-yield credit trading.
Its fourth-quarter 2023 earnings per share of $1.84 beat the Zacks Consensus Estimate by 7%. Moreover, the bottom line increased from $1.58 a year ago.
Total revenues increased 10.9% year over year to $197.2 million in the quarter under review. Also, the top line beat the consensus mark by 0.7%.
Nasdaq (NDAQ - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate by 2.9%. The bottom line improved 12.5% year over year.
Nasdaq’s revenues of $1.1 billion increased 23% year over year. The top line beat the Zacks Consensus Estimate by 5%.
Annualized recurring revenue (ARR) increased 29% year over year. Annualized SaaS revenues increased 23% and represented 35% of ARR. Operating margin of 55% expanded 600 basis points year over year.
Nasdaq expects 2024 non-GAAP operating expenses to be between $2.105 billion and $2.185 billion.
Cboe Global Markets, Inc. (CBOE - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.06 per share, which outpaced the Zacks Consensus Estimate by 2%. The bottom line increased 14% year over year. Total adjusted revenues were $499 million, which improved 9% year over year. However, the top line missed the consensus mark by 1.2%.
Adjusted operating margin came in at 61.6%, which expanded 20 bps year over year. Adjusted EBITDA margin of 64.3% expanded 40 bps year over year.
CBOE anticipates organic total net revenue growth in the range of 5-7% in 2024, in line with medium-term organic total net revenue expectations.