Coinbase Shrinks 13% on Mixed Q3 Results

Cryptocurrency exchange platform operator Coinbase Global, Inc. (COIN) has reported mixed results for the quarter ended September 30, 2021. Following the earnings, shares of the company declined 13.2% to close at $310.06 in the extended trade.

Revenue & Earnings

Coinbase reported quarterly revenues of $1.3 billion, which denotes a significant jump from the prior year’s figure of $315.4 million. The overall growth in revenues was aided by the massive year-over-year jump witnessed in Transaction revenue, and Subscription and Services revenue to $1.1 billion and $145.1 million, respectively. Yet, the figure failed to surpass the consensus estimate of $1.56 billion.

The company’s earnings per share (EPS) at the end of the quarter rose to $1.62 from $0.23 per share in the same quarter last year. The figure surpassed the consensus estimate of $1.57 per share.

Other Operating Metrics

In other operating metrics, Monthly Transacting Users (MTU) at the end of the quarter stood at 7.4 million against 2.1 million in the year-ago quarter.

Trading Volume and Assets on Platform also witnessed a significant year-over-year increase and stood at $327 billion and $255 billion, respectively.

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The company forecasts average retail MTUs for 2021 to be between 8 million and 8.5 million.

Price Target

On November 9, Mizuho Securities analyst Dan Dolev reiterated a Hold rating on the stock with a price target of $300, which implies downside potential of 16.1% from current levels.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 12 Buys, 3 Holds and 2 Sells. The average Coinbase price target of $362.44 implies that the stock has upside potential of 1.4% from current levels. Shares have gained about 8.9% over the past year.

TipRanks Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Coibase’s performance this quarter.

According to the tool, the Coinbase website recorded a 158.15% monthly rise in global visits in October. Further, year-to-date, website traffic increased 221.42%.

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