Coinbase Global, Inc. COIN reported fourth-quarter 2024 net operating earnings per share of $3.39, which beat the Zacks Consensus Estimate by 74.7%. The bottom line surged more than three-fold year over year. COIN reported net income of $4.68 per share.

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The quarterly results gained from higher consumer and institutional transaction revenues and crypto asset prices. Further, the continued growth of Coinbase One subscribers and improved adjusted EBITDA added to the upside. Escalating expenses are the offsets.

Operational Update       

Total Trading Volume more than doubled year over year to $439 million in the reported quarter. The Zacks Consensus Estimate was pegged at $391 million.

Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 21.3%. The top line more than doubled year over year on higher Transaction revenues, Subscription and services revenues and other revenues.

Total transaction revenues surged nearly three-fold year over year to $1.56 billion in the quarter. The growth was due to an increase in consumer transaction revenues, institutional transaction revenues and other transaction revenues. The Zacks Consensus Estimate was pegged at $1 billion.

Total subscription and services revenues increased 70.7% year over year to $641.1 million in the reported quarter. The growth was driven by higher crypto asset prices, average native unit inflows across staking, custody, and USDC assets in the product suite, as well as the continued growth of Coinbase One subscribers. The Zacks Consensus Estimate was pegged at $586 million.

Total other revenues increased 51.7% to $74.6 million in the quarter. The Zacks Consensus Estimate was pegged at $69 million.

Adjusted EBITDA was $1.3 billion in the reported quarter, which skyrocketed nearly four-fold year over.

Total operating expenses increased 47.6% to $1.2 billion in the quarter due to higher transaction expense, technology and development, sales and marketing and general and administrative expenses.

Financial Update

Coinbase exited the fourth quarter with cash and cash equivalents of $8.5 billion as of Dec. 31, 2024, up 66.2% from 2023-end.

As of Dec. 31, 2024, long-term debt increased 42% from 2023-end to $4.2 billion.

Shareholders' equity was $10.3 billion at the fourth-quarter 2024-end, up 63.6% from 2023-end.

Net cash provided by operating activities was $2.5 billion in 2024, which surged more than doubled year over year.

Q1 2025 Outlook

Coinbase expects subscription and services revenues to grow sequentially and be in the range of $685-$765 million.

Coinbase expects technology and development and general and administrative expenses to be in the range of $750-$800 million, reflecting growth in variable expenses related to elevated Trading Volume as well as payroll taxes and headcount.

The company projects sales and marketing to be between $235 million and $375 million.

Coinbase expects sales and marketing expenses to increase quarter over quarter to $235-$375 million due to potential variability in performance marketing and USDC assets in the product suite which drives USDC rewards.

Coinbase expects transaction expenses to be in the mid-to-high teens as a percentage of net revenues.

Full-Year Highlights

Full-year 2024 operating income of $9.48 per share skyrocketed 25-fold year over year. The metric beat the Zacks Consensus Estimate by 59%.

Total operating revenues doubled year over year in 2024 to $6.5 billion and beat the Zacks Consensus Estimate by 9.3%.

Zacks Rank

Coinbase currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Financial - Miscellaneous Services Providers

Bread Financial Holdings’ BFH operating income of 41 cents per share for the fourth quarter of 2024 beat the Zacks Consensus Estimate of 33 cents. Shares gained 0.1% in the last trading session to reflect the overperformance. The bottom line plunged 54% year over year. The quarterly results reflected a dip in revenues but higher credit sales. Revenues decreased 9.2% year over year to $926 million. The top line missed the consensus estimate by 3.3%.

Credit sales of $7.9 billion increased 1%, indicating new partner growth and stronger holiday sales. Average loans of $18.2 billion decreased 1%, due to lower full-year credit sales and elevated gross losses. Our estimate for the same was $17.9 billion. Total interest income decreased 7.1% to $1.2 billion, in line with our estimate and the Zacks Consensus Estimate. 

Virtu Financial, Inc. VIRT reported fourth-quarter 2024 adjusted earnings per share of $1.14, which outpaced the Zacks Consensus Estimate by 32.6%. The bottom line jumped more than four-fold year over year. Adjusted net trading income improved more than 75% year over year to $457.7 million in the quarter under review. It beat the consensus estimate by 14.7%.

Revenues from commissions, net and technology services amounted to $140.5 million, rising 22.8% year over year. The metric beat the consensus mark and our model estimate of $127.4 million. Adjusted EBITDA jumped to $283.5 million in the quarter under review from $99 million a year ago and surpassed our model estimate of $175.8 million. Adjusted EBITDA margin of 57.5% improved 2,400 basis points year over year.

American Express Company AXP reported fourth-quarter 2024 earnings per share of $3.04, which beat the Zacks Consensus Estimate by a whisker. The bottom line climbed 16% year over year. Total revenues net of interest expense amounted to $17.2 billion, which also beat the Zacks Consensus Estimate by a whisker. The top line improved 8.7% year over year in the quarter under review.

Network volumes of $464 billion rose 7% year over year in the fourth quarter, driven by higher consumer spending. The figure surpassed the Zacks Consensus Estimate of $458.7 billion. Total interest income of $6.1 billion increased 9% year over year but missed the consensus mark of $6.2 billion. Provision for credit losses declined 10% year over year to $1.3 billion due to a reduced net reserve build partially offset by a rise in net write-offs. 

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