Coinbase(US:COIN) ZACKS·2025-05-09 16:06Core Insights - Coinbase Global, Inc. reported first-quarter 2025 net operating earnings per share of $1.94, exceeding the Zacks Consensus Estimate by 4.9% and reflecting a year-over-year increase of 17.6% [1] - The quarterly performance was driven by higher consumer and institutional transaction revenues, rising crypto asset prices, and growth in Coinbase One subscribers, although escalating expenses posed a challenge [1] Operational Update - Total trading volume rose 26% year over year to $393 million, surpassing the Zacks Consensus Estimate of $388 million [2] - Total revenues reached $2 billion, missing the Zacks Consensus Estimate by 4.1%, but increased 24% year over year due to higher transaction, subscription, and service revenues [2] Revenue Breakdown - Total transaction revenues increased 18.2% year over year to $1.3 billion, aligning with the Zacks Consensus Estimate [3] - Subscription and services revenues surged 36.3% year over year to $698.1 million, driven by higher Stablecoin revenues, matching the Zacks Consensus Estimate [3] Financial Performance - Adjusted EBITDA was $929.9 million, down 8.3% from the previous year, while total operating expenses rose 51.5% to $1.3 billion due to increased sales and marketing and administrative costs [4] - As of March 31, 2025, Coinbase had cash and cash equivalents of $8.1 billion, a decrease of 5.5% from the end of 2024, and long-term debt increased 4.7% to $4.2 billion [5] Q2 2025 Outlook - Coinbase anticipates subscription and services revenues to range between $600 million and $680 million, with growth in Stablecoin revenues expected to be offset by a decline in blockchain rewards revenues [6] - Projected technology and development expenses are expected to be between $700 million and $750 million, reflecting increased variable expenses due to elevated trading volume [6][7]