Coinbase Q3 2024 Earnings Preview: What to Expect

Key takeaways:

1. Earnings announcement: Coinbase Global, Inc. is scheduled to report its Q3 2024 earnings on October 30, 2024.
2. Revenue breakdown: the expected revenue includes $560.89 million from subscriptions and services and $685.80 million from transactional revenue.
3. Expense projections: technology and administrative expenses are projected to rise due to uneven stock-based compensation recognition, while sales and marketing expenses are anticipated to grow due to increased digital marketing efforts.
4. Analyst price targets: Wall Street analysts have set a 12-month average price target of $255.23 for Coinbase
5. Technical trading analysis: Coinbase shares have broken out of a double bottom reversal pattern, indicating a bullish trend reversal

When is the Coinbase earnings date?

Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The company will report Q3 2024 earnings on the 30th of October 2024.

Coinbase results: Q3 2024 earnings preview, what does ‘The Street’ expect?

A consensus of estimates from Thomson Reuters arrives at the following expectations for the Q3 2024 Coinbase results:

• Revenue $1.253bn
• Subscription and services revenue $560.89m
• Transactional revenue $685.80m
• EPS of $2.56

In terms of the group’s guidance in their previous quarterly results, Coinbase anticipates Q3 subscription and services revenue to be between $530-$600 million, facing modest challenges such as a 3% drop in Ethereum prices, a September rate cut, increased USDC-related expenses, and a previous one-time $8M blockchain rewards nbenefit in the prior results. 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 Q4. Sales and marketing expenses are also expected to grow, driven by increased digital marketing efforts, with the potential to reach the upper revenue range relying on favorable spending opportunities.

How to trade the Coinbase results

Based on 17 Wall Street analysts offering 12 month price targets for Coinbase Global in the last 3 months. The average price target is US$255.23 with a high forecast of US$380.00 and a low forecast of US$175.00. The average price target represents a 21.12% change from the last price of US$210.72.

Technical analysis view

The share price of Coinbase have broken out of a double bottom reversal pattern (‘W’ shape below 193.15). The pattern and breakout suggests a bullish trend reversal of 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. break of this level, confirmed with a close above would suggest 263.50 as a further target from the move. A move below 176.25 would suggest the reversal pattern to have instead failed.