Coinbase is set to announce its Q4 financial results this Thursday, with expectations of exceeding both revenue and earnings forecasts, as highlighted by recent analysis.
The crypto exchange is projected to report a revenue of $1.911 billion for Q4, surpassing Wall Street’s consensus estimate of $1.8 billion. Additionally, Coinbase’s earnings per share are anticipated to reach $2.21, edging past the estimated $2.16.
Positive Market Dynamics
Recent analysis indicates that favorable market conditions in the fourth quarter have led to stronger-than-expected results for Coinbase.
Bitcoin (BTC) recently soared past $90,000, driven by renewed investor enthusiasm following significant political events. The cryptocurrency reached an unprecedented high of $106,000 in mid-December, showcasing robust market demand. Ethereum (ETH) also experienced notable growth, climbing 28% quarter-over-quarter to $3,330.
Centralized exchanges witnessed staggering trading volumes, with over $16 billion in net inflows recorded in U.S. spot BTC ETFs. In total, aggregate spot trading volumes surged by 104% from the previous quarter, reaching $8.7 trillion in Q4 2024, with nearly $3.7 trillion traded in December alone, surpassing the previous record set in May 2021.
Continued Growth Ahead for Coinbase
Analysts believe Coinbase is well-positioned to leverage ongoing market momentum. The company is forecasted to generate total revenue of $7.3 billion by 2025, a significant increase from prior projections of $5.3 billion.
Projections for Coinbase’s earnings per share for the full year 2025 have also been adjusted upward to $8.29, compared to the earlier estimate of $2.77.
In light of these positive developments, the research outlook for Coinbase’s stock has been updated, with a new price target set between $255 and $330, reflecting an 11.5 times EV/revenue based on the 2025 revenue estimate of $7.3 billion.
