Coinbase Q3 2024 earnings: revenue & market challenges
Discover the latest Q3 2024 earnings projections for Coinbase, including revenue expectations, EPS estimates, and the market challenges the company faces amidst fluctuating Ethereum prices and increased operational expenses.
When is Coinbase's earnings date?
Coinbase Global Inc. will report its Q3 2024 earnings on Thursday, 31 October at 7.10am (AEDT).
What does ‘The Street’ expect?
A consensus of estimates from Thomson Reuters arrives at the following expectations for the Q3 2024 Coinbase results:
- Revenue: $1.253 billion
- Subscription and services revenue: $560.89 million
- Transactional revenue: $685.80 million
- EPS: $2.56
Group guidance and challenges
In their previous quarterly results, Coinbase anticipated Q3 subscription and services revenue to be between $530 million and $600 million. The company faces modest challenges, such as a 3% drop in Ethereum prices, a September rate cut, increased USDC-related expenses, and a previous one-time $8 million blockchain rewards benefit in the prior results.
Expenses and growth plans
Technology and administrative expenses are expected to rise due to uneven stock-based compensation recognition. The group plans to increase headcount cautiously to support product and international expansion. While stock-based compensation is projected to remain steady compared to the first half of the year, it may be higher in Q3 than in Q4.
Sales and marketing
Sales and marketing expenses are also expected to grow, driven by increased digital marketing efforts. The potential to reach the upper revenue range relies on favourable spending opportunities.
How to trade Coinbase
Based on 17 Wall Street analysts offering 12-month price targets for Coinbase Global over the last three months, the average price target is $255.23, with a high forecast of $380.00 and a low forecast of $175.00. The average price target represents a 21.12% change from the last price of $210.72.
Client sentiment chart
Technical analysis
The share price of Coinbase has broken out of a double bottom reversal pattern ('W' shape below 193.15).
The pattern and breakout suggest a bullish trend reversal from the preceding downtrend. Breakout traders might look to accumulate long positions on a pullback towards the 193.15 support level, targeting a move back towards the high at 223.50.
A break of this level, confirmed with a close above, would suggest 263.50 as a further target from the move. Conversely, a move below 176.25 would suggest the reversal pattern has instead failed.
Coinbase daily chart
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