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Earnings To Watch: Coinbase (COIN) Reports Q3 Results Tomorrow

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Cryptocurrency exchange Coinbase (NASDAQ: COIN) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Coinbase beat analysts’ revenue expectations by 6.2% last quarter, reporting revenues of $1.45 billion, up 105% year on year. It was a very strong quarter for the company, with exceptional revenue growth and a solid beat of analysts’ user estimates. It reported 8.2 million monthly active users, up 12.3% year on year.

Is Coinbase a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Coinbase’s revenue to grow 86.6% year on year to $1.26 billion, improving from the 14.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.

Coinbase Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 16 analysts). Coinbase has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 9.3% on average.

Looking at Coinbase’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.

Read our full analysis of Netflix’s results here and Coursera’s results here.

Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Coinbase is up 22.1% during the same time and is heading into earnings with an average analyst price target of $237.35 (compared to the current share price of $217.60).

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