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Coinbase Global (COIN)
NASDAQ:COIN
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Coinbase Global
(NASDAQ:COIN)
68Neutral
Positive Factors
Growth Potential
The analyst rates COIN Outperform, with a strong valuation target, indicating confidence in its future growth potential.
Market Position
Coinbase is the largest cryptocurrency exchange in the United States, offering quality, pure play exposure to crypto with leverage to retail and institutional trading.
Regulatory Environment
Strong regulatory tailwinds are expected to drive the crypto industry to the American financial mainstream.
Negative Factors
Competition
Competition could pressure COIN’s market share and pricing over time, especially if regulatory reform brings in competitors from across financial services.
Earnings Volatility
Investors are assigning a low multiple on COIN due to earnings volatility.
Fee Pressure
Coin bears worry about rising competition and fee pressure, but overlook the massive TAM expansion from re-shoring of global crypto markets back to the U.S.
Coinbase Global (COIN) vs. S&P 500 (SPY)
Market Cap
$43.72B
Dividend YieldN/A
Average Volume (3M)9.10M
Price to Earnings (P/E)18.4
Beta (1Y)2.62
Revenue Growth132.55%
EPS Growth2681.72%
CountryUS
Employees3,772
SectorFinancial
Sector Strength79
IndustrySoftware - Application
Share Statistics
EPS (TTM)9.49
Shares Outstanding210,155,380
10 Day Avg. Volume9,971,080
30 Day Avg. Volume9,103,731
Financial Highlights & Ratios
PEG Ratio0.00688
Price to Book (P/B)N/A
Price to Sales (P/S)7.34
Price to Cash Flow (P/CF)12.50
P/FCF Ratio11.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$290.15Price Target Upside65.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
Coinbase Global Business Overview & Revenue Model
Company DescriptionCoinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. The company offers the primary financial account in the cryptoeconomy for retailers; a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable ecosystem partners to build crypto-based applications and securely accept crypto assets as payment. Coinbase Global, Inc. was founded in 2012 and is based in Wilmington, Delaware.
How the Company Makes MoneyCoinbase Global makes money primarily through transaction fees charged on its cryptocurrency exchange. The company generates revenue by taking a percentage fee on trades conducted by users on its platform, which can vary depending on the size of the transaction and the user's location. In addition to transaction fees, Coinbase earns from subscription and services revenue, which includes services like Coinbase Custody for institutional clients, staking services, and earning interest on certain digital assets. The company also benefits from partnerships with various financial institutions and blockchain projects, contributing to its earnings by providing technological solutions and infrastructure support. Significant market volatility and increased interest in cryptocurrencies can significantly influence Coinbase's revenue, as more trading activity leads to higher transaction fee income.
Coinbase Global Financial Statement Overview
Summary
Coinbase Global has shown significant improvement in financial performance, particularly in revenue growth and profitability margins. The company reported a strong revenue growth rate of 111% and high gross profit margin of 86.3% in 2024. The balance sheet reflects a healthy leverage position and strong equity base, though asset reductions may need attention. Cash flow metrics are robust, highlighting the company's ability to generate cash effectively.Income Statement
Coinbase Global has demonstrated strong revenue growth, with Total Revenue increasing significantly from $3108 million in 2023 to $6564 million in 2024, a growth rate of 111%. The Gross Profit Margin was high at 86.3% in 2024, indicating efficient cost management. However, the company experienced volatility in profitability with a Net Profit Margin of 39.3% in 2024, which is an improvement from previous losses. The EBIT and EBITDA margins also improved positively to 35.1% in 2024.75
Positive
Balance Sheet
The Debt-to-Equity Ratio was 0.44 in 2024, reflecting a balanced leverage position. Return on Equity (ROE) was 25.1%, indicating strong profitability relative to shareholder equity. The Equity Ratio was 45.6%, showing a solid equity foundation. However, the company’s Total Assets have decreased compared to prior periods, which could pose a challenge for future growth.70
Positive
Cash Flow
Coinbase Global showed strong cash flow performance with a Free Cash Flow of $2556 million in 2024, improving from $860 million in 2023. The Operating Cash Flow to Net Income Ratio was 0.99, indicating efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio was also favorable at 0.99, suggesting strong cash flow conversion from profit.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.56B | 3.11B | 3.19B | 7.84B | 1.28B | Gross Profit |
| 5.67B | 2.69B | 2.56B | 6.57B | 1.14B | EBIT |
| 2.31B | -161.66M | -2.67B | 3.08B | 408.95M | EBITDA |
| 3.15B | 25.21M | -2.82B | 3.14B | 464.93M | Net Income Common Stockholders |
| 2.58B | 94.87M | -2.62B | 3.62B | 322.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.82B | 10.29B | 5.29B | 7.22B | 1.11B | Total Assets |
| 22.54B | 206.98B | 89.72B | 21.27B | 5.86B | Total Debt |
| 4.53B | 3.06B | 3.49B | 3.49B | 107.78M | Net Debt |
| -4.05B | -2.08B | -935.28M | -3.63B | -954.07M | Total Liabilities |
| 12.27B | 200.70B | 84.27B | 14.89B | 4.33B | Stockholders Equity |
| 10.28B | 6.28B | 5.45B | 6.38B | 1.53B |
| Cash Flow | Free Cash Flow | |||
| 2.56B | 859.75M | -1.65B | 10.64B | 2.99B | Operating Cash Flow |
| 2.56B | 922.95M | -1.59B | 10.73B | 3.00B | Investing Cash Flow |
| -282.38M | 5.39M | -663.82M | -1.12B | 50.82M | Financing Cash Flow |
| 2.83B | -811.33M | -5.84B | 3.28B | 18.80M |
Coinbase Global Technical Analysis
Neutral
175.03
Price Trends
206.44
Negative
247.68
Negative
227.90
Negative
Market Momentum
-9.03
Negative
45.15
Neutral
76.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COIN, the sentiment is Neutral. The current price of 175.03 is below the 20-day moving average (MA) of 177.25, below the 50-day MA of 206.44, and below the 200-day MA of 227.90, indicating a bearish trend. The MACD of -9.03 indicates Negative momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COIN.
Coinbase Global Risk Analysis
Coinbase Global disclosed 85 risk factors in its most recent earnings report. Coinbase Global reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coinbase Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $43.72B | 18.44 | 31.13% | ― | 132.55% | 2681.72% | |
64 Neutral | $3.94B | ― | -966.61% | ― | 32.71% | -131.68% | |
64 Neutral | $1.14B | ― | -39.88% | ― | 21.66% | 8.66% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% | |
63 Neutral | $2.23B | 18.76 | 4.35% | ― | 34.20% | ― | |
61 Neutral | $16.46B | ― | -1.62% | ― | 18.52% | 76.16% | |
55 Neutral | $82.96B | ― | -11.44% | ― | -6.61% | -254.90% |
* Financial Sector Average
Performance Comparison
COIN
Coinbase Global
175.03
-35.98
-17.05%
RIOT
Riot Platforms
6.46
-2.67
-29.24%
MSTR
Strategy
317.20
199.79
170.16%
SPT
Sprout Social
19.64
-31.34
-61.48%
GRND
Grindr
19.58
9.80
100.20%
GRAB
Grab
4.11
0.74
21.96%
Coinbase Global Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -36.33% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call for Coinbase Global, Inc. was largely positive, with strong revenue growth, increased trading volumes, and favorable regulatory developments. However, there were some concerns about declining stablecoin revenue and rising expenses.Highlights
Impressive Revenue Growth
Total revenue in 2024 more than doubled to $6.6 billion, with $3.3 billion in adjusted EBITDA, marking two straight years of positive adjusted EBITDA.
Subscription Services Surge
Subscription services revenue increased by 64% year-over-year to $2.3 billion, driven by USDC, staking, and Coinbase One.
Record Trading Volume
Q4 total trading volume was $439 billion, up 137% quarter-over-quarter, with consumer trading volume at $94 billion, up 176%.
International Revenue Growth
International revenue share reached 19% in Q4 due to improved payment rails and localization.
Positive Adjusted EBITDA and Net Income
Q4 adjusted EBITDA was $1.3 billion, and net income was also $1.3 billion, with significant gains from crypto asset investment portfolio.
Regulatory Tailwinds
Regulatory environment becoming more favorable, with new pro-crypto legislation and support from the US government.
Strong Balance Sheet
USD resources grew to $9.3 billion by the end of the year, providing flexibility for investments and acquisitions.
Lowlights
Stablecoin Revenue Decline
Stablecoin revenue declined by $21 million or 9% due to the lower interest rate environment and new USDC ecosystem participants.
Increased Operating Expenses
Q4 operating expenses were $1.2 billion, up 19%, primarily driven by higher transaction expenses and increased marketing spend.
Volatility Impact Concerns
Questions from analysts regarding the impact of market volatility on user activity, though management downplayed significant impact.
Company Guidance
During the Coinbase Global, Inc. fourth quarter and full year 2024 earnings call, the company provided optimistic guidance for 2025, highlighting several key metrics and strategic priorities. Coinbase achieved a total revenue of $6.6 billion in 2024, more than doubling from the previous year, with an adjusted EBITDA of $3.3 billion, marking two consecutive years of positive adjusted EBITDA. Subscription services revenue increased by 64% year-over-year to $2.3 billion, driven by USDC, staking, and Coinbase One. The company's international revenue share reached 19% in Q4, thanks to improved payment rails and localization efforts. Looking ahead to 2025, Coinbase aims to grow revenue through existing products, expand into international markets, and capitalize on regulatory tailwinds. Priorities include enhancing derivatives trading, driving USDC's market cap growth, and increasing subscription services revenue. Additionally, Coinbase plans to accelerate crypto payments integration, lower transaction fees on Base, and support landmark crypto legislation, while maintaining a strong focus on operating discipline and opportunistic investments.Coinbase Global Corporate Events
Legal Proceedings
Coinbase Global Reaches Agreement with SEC on Litigation
Neutral
Feb 21, 2025
Coinbase Global faced legal action from the SEC beginning in June 2023, with allegations of operating an unregistered securities exchange and offering unregistered securities. On February 21, 2025, Coinbase announced an agreement in principle with the SEC to dismiss the litigation, pending approval from the SEC’s Commissioners, marking a significant development in its ongoing legal challenges.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.