Wedbush analysts lauded Coinbase Global Inc (NASDAQ:COIN)’s stronger-than-anticipated financial performance in the fourth quarter, noting the cryptocurrency exchange’s outperformance in several key areas.
Coinbase reported revenues of US$953.8 million in the quarter, surpassing street expectations of US$826.1 million with total revenue growth of 41.0% quarter-over-quarter.
Adjusted EBITDA and its margin reached $305 million and 33.7%, respectively, outperforming FactSet's projection of a 30.2% margin.
Furthermore, net income turned positive to $273 million, a significant improvement from a loss of $557 million a year prior.
According to the broker note, Coinbase's achievements have effectively counteracted several concerns previously held by sceptics, including fears of fee compression since its IPO, potential cannibalisation from ETFs and reliance on retail and trading fees.
Wedbush said Coinbase has not only managed to sidestep these issues but has also been making considerable strides in diversifying its revenue streams, particularly through value-added services and an increasing focus on institutional clients.
This has led Wedbush to maintain its 'outperform' rating on Coinbase with a $200 12-month price target.
Shares were swapping hands for $184.92 at the time of writing.