Coinbase Analysts See 'Inherent Profitability' In Q4 Results

Shares of Coinbase Global Inc (NASDAQ:COIN) were trading lower on Friday, even after the company reported upbeat fourth-quarter revenues.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On Coinbase Global

Analyst Will Nance reiterated a Neutral rating, while lifting the price target from $340 to $350.

Coinbase Global’s fourth-quarter total revenue reached $2.272 billion, exceeding the consensus estimate of $1.862 billion by 22%, Nance wrote. Transaction revenues beat consensus by 33%, while subscription and services revenue came in 6% above, he added.

The strong results were driven by volume growth and sequentially flat take rate, the analyst stated. "Against the stronger topline growth, the company demonstrated prudent opex control, with EBITDA margins approaching 57% in the quarter," he further wrote.

Canaccord Genuity On Coinbase Global

Analyst Joseph Vafi maintained a Buy rating, while raising the price target from $280 to $400.

Coinbase Global's revenues grew by 88% sequentially to $2.3 billion and adjusted EBITDA came in at $1.3 billion, Vafi said. "We believe this level of inherent profitability in the COIN model should be highlighted and we believe there is more operating leverage in a scenario where revenue moves higher," he wrote.

The company continues to gain market share, despite not being the lowest cost service provider, the analyst stated. The midpoint of management's first-quarter guidance for subscription and service revenue came in at $725 million, implies 13% sequential growth, he added.

Check out other analyst stock ratings.

JMP Securities On Coinbase Global

Analyst Devin Ryan reaffirmed a Market Outperform rating, while lifting the price target from $400 to $475.

Coinbase Global's revenues grew 138% year-on-year to $2.3 billion and adjusted EBITDA by nearly 300% to $1.3 billion, Ryan said. "Coinbase exited 2024 with tremendous business momentum," he wrote.

Coinbase is benefiting from improving sentiment for the broader digital asset industry, the analyst stated. Management indicated that transaction activity had continued to grow at the same rate as in the fourth quarter, while projecting 13% sequential growth in Subscription & Services revenue for the first quarter, he added.

HC Wainwright On Coinbase Global

Analyst Mike Colonnese reiterated a Buy rating, while raising the price target from $330 to $350.

Coinbase Global continued to gain market share in a quarter that was strong for the broader crypto industry, Colonnese said. The company listed 13 new assets on the platform, which helped drive the 24% sequential rise in monthly transacting users (MTUs) in the quarter to 9.7 million.

"4Q call was the most bullish we have heard management on the future of crypto in the U.S.," the analyst wrote. The company guided to strong Subscription and Services revenue growth due to higher expected Stablecoin revenue, higher crypto asset prices and Coinbase One user growth, he further stated.

COIN Price Action: Shares of Coinbase Global were down 6.5% to $278.60 at the time of publication on Friday.

Read More:

• Billionaire Peter Thiel-Backed Crypto Startup Plasma Raises $20M To Develop Bitcoin-Based Stablecoin Network 

Photo: Shutterstock