Coinbase Q1 Earnings: Check Out How Profit Predictions, Performance & Analysts Think?

Bittime - Coinbase, the NASDAQ-listed crypto asset exchange company codenamed COIN, is scheduled to announce its first quarter (Q1) financial results on Thursday, May 2, after market close.

This article will discuss profit predictions, Coinbase performance and analyst opinions regarding the first quarter of earnings from this largest asset company.

Coinbase Q1 2024 Profit and Revenue Predictions

Analysts surveyed by FactSet expect Coinbase to post earnings per share (EPS) of $1.15 for the first quarter of 2024.

This figure represents a projected increase from the $1.04 EPS earned by the company in the fourth quarter of 2023.

Coinbase's revenue is predicted to reach $1.36 billion, topping the $954 million result achieved in the previous year's fourth quarter.

Check Today's Crypto Market:

Coinbase & Losses in 2023

In early 2023, Coinbase posted a loss of 34 cents per share on revenue of $773 million. This was caused by the crypto industry shake-up triggered by the bankruptcy of crypto exchange platform FTX.

How to Buy Crypto:

Coinbase Stock Price Performance

This year, Coinbase shares performed brilliantly with an increase of 17%, far exceeding the performance of the industry as a whole which only experienced a decline of 0.8%.

In the Finance sector, the increase in Coinbase shares was more significant than the industry average increase of 0.3%. Meanwhile, in the same period, the S&P 500 Composite Index recorded an increase of 6%.

Coinbase Has a Competitive Edge to Navigate the Volatile Crypto Market

Coinbase, with its unique business model, is strategically positioned to thrive amid increasing crypto market volatility. Coinbase's primary revenue still comes from crypto trading, particularly derivatives trading which has dominated trading volume for the past six years.

Coinbase's prominence as a spot trading leader in the United States was strengthened by the global launch of derivatives trading last year.

Coinbase's proactive efforts in adapting to dynamic market trends indicate positive prospects for the company's future.

Analysts' Thoughts On Coinbase's Q1 Financial Report

Worthington predicts Coinbase will generate $450 million in revenue from subscriptions and services.

Analysts also predict that Base, Coinbase's Layer 2 platform, will make a more significant contribution this quarter with net revenue of around $20 million.

"We view Coinbase as a major driver and beneficiary of the crypto asset economy," Worthington said. "Previously, we underestimated the power of the US spot Bitcoin ETF in the early days of its launch (January 2024) as a major catalyst for the crypto industry."

Check Crypto Prices Today: