Yahoo Finance Coinbase (COIN) Q4 Earnings Miss, Revenues Beat Estimates
Coinbase Global COIN reported fourth-quarter 2022 loss of $2.46 per share, wider than the Zacks Consensus Estimate of loss of $2.39. The company reported earnings of $3.32 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 and continued to 2022.
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 of $629.1 million beat the Zacks Consensus Estimate by 7.3%. However, the top line dropped 74.8% year over year, reflecting decreases in transaction revenues, subscription and services revenues as well as other revenues.
Monthly transacting users were 8.8 million in 2022.
The trading volume of $145 billion declined 73.5% year over year, attributable to decline in crypto market cap.
Total operating expenses declined 24.9% year over year to $1.2 billion, attributable to lower transaction expenses, sales and marketing as well as other operating expenses.
Adjusted EBITDA was $1.2 billion in the reported quarter, against a loss of $124 million in the year-ago quarter.
Financial Update
As of Dec 31, 2022, cash and cash equivalents were $4.4 billion, down 37.8% from the figure at 2021 end. Total assets were $89.7 billion, up more than four-fold from the level at 2021 end.
At the end of 2022, long-term debt of the company was $3.4 billion, up 0.1% from 2021 end.
Total shareholders’ equity was $5.4 billion at the end of 2022, down 14.5% from the value as of Dec 31, 2021.
Cash used in operations was $1.6 billion in 2022 versus cash from operations of $4 million in 2021.
Q1 2023 Guidance
Coinbase estimates subscription and services revenues in the range of $300-$325 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 $60-$70 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 $625 million and $675 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
Cboe Global Markets, Inc. CBOE reported fourth-quarter 2022 adjusted earnings of $1.80 per share, which outpaced the Zacks Consensus Estimate by 1.7%. The bottom line increased 5.8% year over year.
CBOE’s total adjusted revenues amounted to $457.1 million for the fourth quarter, up 17% year over year on the back of growth in derivatives markets, and data and access solutions. The top line missed the Zacks Consensus Estimate by 0.6%.
Options revenues climbed 35% year over year to $273.2 million. Europe and Asia Pacific revenues decreased 15 % year over year to $44.2 million. Futures net revenues decreased 10% year over year to $26.8 million for the quarter under review.
Nasdaq, Inc. NDAQ reported fourth-quarter 2022 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 65 cents by nearly 1.5%. The bottom line remained unchanged year over year. Revenues of $906 million increased 2.3% year over year and matched the Zacks Consensus Estimate.
Annualized Recurring Revenue (ARR) increased 8% year over year. Annualized SaaS revenues increased 13% and represented 36% of ARR. Operating margin of 49% contracted 200 basis points year over year.
In 2022, the Nasdaq Stock Market featured six of the 10 largest U.S. IPOs by capital raised, attracted 74% of all proceeds raised through U.S. IPOs and welcomed 14 listing switches. In the Nordic and Baltic regions, NDAQ maintained its leadership position with 38 IPOs.
MarketAxess Holdings Inc. MKTX reported fourth-quarter 2022 earnings per share of $1.58, beating both the Zacks Consensus Estimate of $1.53 and our estimate of $1.45. The bottom line increased 15.3% year over year.
MKTX’s total revenues of $177.9 million rose 7.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $176 million and our estimate of $175.7 million.
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