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Coinbase Global (COIN - Free Report) reported fourth-quarter 2022 loss of $2.46 per share, wider than the Zacks Consensus Estimate of loss of $2.39. The company reported earnings of $3.32 per share a year ago.
In the quarter under review, Coinbase witnessed lower trading volumes in both retail and institutional as a result of both lower crypto asset prices and volatility that began in late 2021 and continued to 2022.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Total revenues of $629.1 million beat the Zacks Consensus Estimate by 7.3%. However, the top line dropped 74.8% year over year, reflecting decreases in transaction revenues, subscription and services revenues as well as other revenues.
Monthly transacting users were 8.8 million in 2022.
The trading volume of $145 billion declined 73.5% year over year, attributable to decline in crypto market cap.
Total operating expenses declined 24.9% year over year to $1.2 billion, attributable to lower transaction expenses, sales and marketing as well as other operating expenses.
Adjusted EBITDA was $1.2 billion in the reported quarter, against a loss of $124 million in the year-ago quarter.
Financial Update
As of Dec 31, 2022, cash and cash equivalents were $4.4 billion, down 37.8% from the figure at 2021 end. Total assets were $89.7 billion, up more than four-fold from the level at 2021 end.
At the end of 2022, long-term debt of the company was $3.4 billion, up 0.1% from 2021 end.
Total shareholders’ equity was $5.4 billion at the end of 2022, down 14.5% from the value as of Dec 31, 2021.
Cash used in operations was $1.6 billion in 2022 versus cash from operations of $4 million in 2021.
Q1 2023 Guidance
Coinbase estimates subscription and services revenues in the range of $300-$325 million.
Transaction expenses are expected to be in the mid-teens as a percentage of net revenues.
Sales and marketing expenses are expected to be in the range of $60-$70 million and restructuring expenses are expected to be about $15 million. Technology and development as well as general and administrative expenses are estimated to be between $625 million and $675 million.
Cboe Global Markets, Inc. (CBOE - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.80 per share, which outpaced the Zacks Consensus Estimate by 1.7%. The bottom line increased 5.8% year over year.
CBOE’s total adjusted revenues amounted to $457.1 million for the fourth quarter, up 17% year over year on the back of growth in derivatives markets, and data and access solutions. The top line missed the Zacks Consensus Estimate by 0.6%.
Options revenues climbed 35% year over year to $273.2 million. Europe and Asia Pacific revenues decreased 15 % year over year to $44.2 million. Futures net revenues decreased 10% year over year to $26.8 million for the quarter under review.
Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 65 cents by nearly 1.5%. The bottom line remained unchanged year over year. Revenues of $906 million increased 2.3% year over year and matched the Zacks Consensus Estimate.
Annualized Recurring Revenue (ARR) increased 8% year over year. Annualized SaaS revenues increased 13% and represented 36% of ARR. Operating margin of 49% contracted 200 basis points year over year.
In 2022, the Nasdaq Stock Market featured six of the 10 largest U.S. IPOs by capital raised, attracted 74% of all proceeds raised through U.S. IPOs and welcomed 14 listing switches. In the Nordic and Baltic regions, NDAQ maintained its leadership position with 38 IPOs.
MarketAxess Holdings Inc. (MKTX - Free Report) reported fourth-quarter 2022 earnings per share of $1.58, beating both the Zacks Consensus Estimate of $1.53 and our estimate of $1.45. The bottom line increased 15.3% year over year.
MKTX’s total revenues of $177.9 million rose 7.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $176 million and our estimate of $175.7 million.
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Coinbase (COIN) Q4 Earnings Miss, Revenues Beat Estimates
Coinbase Global (COIN - Free Report) reported fourth-quarter 2022 loss of $2.46 per share, wider than the Zacks Consensus Estimate of loss of $2.39. The company reported earnings of $3.32 per share a year ago.
In the quarter under review, Coinbase witnessed lower trading volumes in both retail and institutional as a result of both lower crypto asset prices and volatility that began in late 2021 and continued to 2022.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote
Behind the Headline
Total revenues of $629.1 million beat the Zacks Consensus Estimate by 7.3%. However, the top line dropped 74.8% year over year, reflecting decreases in transaction revenues, subscription and services revenues as well as other revenues.
Monthly transacting users were 8.8 million in 2022.
The trading volume of $145 billion declined 73.5% year over year, attributable to decline in crypto market cap.
Total operating expenses declined 24.9% year over year to $1.2 billion, attributable to lower transaction expenses, sales and marketing as well as other operating expenses.
Adjusted EBITDA was $1.2 billion in the reported quarter, against a loss of $124 million in the year-ago quarter.
Financial Update
As of Dec 31, 2022, cash and cash equivalents were $4.4 billion, down 37.8% from the figure at 2021 end. Total assets were $89.7 billion, up more than four-fold from the level at 2021 end.
At the end of 2022, long-term debt of the company was $3.4 billion, up 0.1% from 2021 end.
Total shareholders’ equity was $5.4 billion at the end of 2022, down 14.5% from the value as of Dec 31, 2021.
Cash used in operations was $1.6 billion in 2022 versus cash from operations of $4 million in 2021.
Q1 2023 Guidance
Coinbase estimates subscription and services revenues in the range of $300-$325 million.
Transaction expenses are expected to be in the mid-teens as a percentage of net revenues.
Sales and marketing expenses are expected to be in the range of $60-$70 million and restructuring expenses are expected to be about $15 million. Technology and development as well as general and administrative expenses are estimated to be between $625 million and $675 million.
Zacks Rank
Coinbase Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Cboe Global Markets, Inc. (CBOE - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.80 per share, which outpaced the Zacks Consensus Estimate by 1.7%. The bottom line increased 5.8% year over year.
CBOE’s total adjusted revenues amounted to $457.1 million for the fourth quarter, up 17% year over year on the back of growth in derivatives markets, and data and access solutions. The top line missed the Zacks Consensus Estimate by 0.6%.
Options revenues climbed 35% year over year to $273.2 million. Europe and Asia Pacific revenues decreased 15 % year over year to $44.2 million. Futures net revenues decreased 10% year over year to $26.8 million for the quarter under review.
Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 65 cents by nearly 1.5%. The bottom line remained unchanged year over year. Revenues of $906 million increased 2.3% year over year and matched the Zacks Consensus Estimate.
Annualized Recurring Revenue (ARR) increased 8% year over year. Annualized SaaS revenues increased 13% and represented 36% of ARR. Operating margin of 49% contracted 200 basis points year over year.
In 2022, the Nasdaq Stock Market featured six of the 10 largest U.S. IPOs by capital raised, attracted 74% of all proceeds raised through U.S. IPOs and welcomed 14 listing switches. In the Nordic and Baltic regions, NDAQ maintained its leadership position with 38 IPOs.
MarketAxess Holdings Inc. (MKTX - Free Report) reported fourth-quarter 2022 earnings per share of $1.58, beating both the Zacks Consensus Estimate of $1.53 and our estimate of $1.45. The bottom line increased 15.3% year over year.
MKTX’s total revenues of $177.9 million rose 7.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $176 million and our estimate of $175.7 million.