Shares of Coinbase Global Inc
Here are some key analyst takeaways from the earnings release:
JMP Securities analyst Devin Ryan reiterated a Market Perform rating and price target of $90.
Keefe, Bruyette & Woods analyst Kyle Voigt reaffirmed an Underperform rating, while reducing the price target from $42 to $40.
Needham analyst Daniel Lehmann maintained a Buy rating and price target of $70.
Raymond James analyst Patrick O'Shaughnessy reiterated an Underperform rating on the stock.
JMP Securities
"Coinbase reported 1Q23 adjusted EBITDA of $283.7M, materially ahead of our estimate for $15.5M and consensus of $0.2M," Ryan said in a note.
"Given the continuation of a challenging environment, coupled with all the regulatory headlines, it was nice to see a relatively clean quarter with respectable results, all things considered," he added.
Keefe, Bruyette & Woods
"Coinbase effectively rolled out pricing hikes throughout 1Q, and we believe has now taken its retail pricing closer to a ~3% all-in fee for "simple" fiat-to-crypto trades vs. ~2% previously," Voigt said.
"While the increased fee capture may help to support transaction fee revenue estimates near term, we view the near-term support as lower quality," as this is unsustainable in the long-term and leaves the door open to competitors, he explained.
Needham
"The EBITDA beat was driven by both cost reduction efforts and higher revenue primarily as a result of much higher than expected pricing spreads on Consumer," Lehmann wrote.
"Encouragingly, retail volumes increased QoQ for the first time since crypto markets unwound in late '21, but April volumes and May (so far) have been in-line with prior 6 mos," he added.
Raymond James
"Transaction volumes continue to be just a fraction of peak levels and shows no evidence of a sustained upturn," O'Shaughnessy said.
"Coinbase's moves to right-size its expense base to reflect the current environment should result in improved financial results in 2023, but we continue to believe substantial retail pricing compression is only a matter of time and struggle to see a path towards substantial long-term profitability," he added.
