Broker JMP said in a research report on Thursday that Coinbase achieved impressive results in the first quarter thanks to improved crypto market conditions and its company's business diversification efforts. Coinbase's first-quarter net income was approximately $1.2 billion, with diluted earnings per share (diluted EPS) of $4.40. Bitcoin prices rose more than 34% in the first quarter, while the CoinDesk 20 Index (CD20) rose nearly 17%. JMP reiterated its "outperform" rating and $320 target price for Coinbase shares (COIN).
Broker Canaccord Genuity raised its COIN target price from $240 to $280 and maintained its "buy" rating. KBW also raised its target price from $230 to $240 and reiterated its "in line with the market" rating.
Coinbase shares were reportedly down 3.6% to $220.62 in pre-market trading on Friday. (CoinDesk)
Previously, Coinbase said that the company's Q1 revenue in 2024 reached $1.6 billion, a month-on-month increase of 72% and a year-on-year increase of about 115%. Net income for the quarter was $1.18 billion, compared with a loss of $79 million in the same period last year, and EBITDA was $1.01 billion.
According to MarketWatch data, Coinbase earned $4.04 per share, exceeding the general expectation of $1.15 per share.
Coinbase said in its financial report: "The first quarter results reflect our investment in product expansion, continued operational discipline and a strong market environment. Our share of the U.S. spot and derivatives markets has increased, we have reached an all-time high on Coinbase Prime, and the market value of USDC is also growing." Overall, trading revenue from both consumer and institutional clients has increased, totaling $1.08 billion this quarter. Institutional trading revenue increased 113% from the previous quarter to $85 million. Consumer-facing business remains Coinbase’s main revenue source, with the company generating $935.2 million in revenue from consumer transactions. Coinbase said its user base grew along with revenue from subscription services.
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