Coinbase Analysts See 'Inherent Profitability' In Q4 Results

Core Viewpoint - Coinbase Global Inc reported strong fourth-quarter revenues, exceeding analyst expectations, but its shares traded lower despite the positive results [1][9]. Financial Performance - Coinbase's fourth-quarter total revenue reached $2.272 billion, surpassing the consensus estimate of$1.862 billion by 22% [2]. - Transaction revenues exceeded consensus by 33%, while subscription and services revenue was 6% above expectations [2]. - Revenues grew 138% year-on-year to $2.3 billion, with adjusted EBITDA increasing nearly 300$1.3 billion [6]. Operational Insights - The strong results were attributed to volume growth and a sequentially flat take rate, with EBITDA margins approaching 57% [3]. - The company demonstrated prudent operational expense control, contributing to its profitability [3]. - Management's first-quarter guidance for subscription and service revenue is projected at $725 million, indicating 13$340 to $350 [2]. - Canaccord Genuity maintained a Buy rating, increasing the price target from$280 to $400 [4]. - JMP Securities reaffirmed a Market Outperform rating, lifting the price target from$400 to $475 [6]. - HC Wainwright reiterated a Buy rating, raising the price target from$330 to $350 [8].