Despite the price of Bitcoin dipping below $100,000, the cryptocurrency has risen over +120% in 2024. Notably, this has led to an awe-inspiring price performance for Coinbase Global COIN which has seen its stock soar +80% year to date.

As the largest cryptocurrency exchange in the United States, investors may be eyeing Coinbase’s stock as a buy-the-dip target with COIN down -9% in Monday's trading session.

Coinbase’s Improved Financial Performance

Attributed to Bitcoin and the broader cryptocurrency rally, Coinbase has seen improved financial metrics. Most recently reporting Q3 results in late October, Coinbase’s quarterly sales climbed 100% to $1.2 billion versus $674.15 million in the comparative quarter.

Most importantly, Coinbase’s Q3 EPS soared to $0.62 on net income of $75 million compared to a loss of $2 million a year ago or -$0.01 per share. This also marked Coinbase’s fourth consecutive quarter of positive net income.

Furthermore, Coinbase has now reached or exceeded the Zacks EPS Consensus for seven straight quarters with a very impressive average earnings surprise of 341.36% in its last four quarterly reports.

Revenue Growth & EPS Revisions

As stated by co-founder and CEO Brian Armstrong, Coinbase’s number one priority has been to drive revenue. Shifting away from more volatile transaction fee revenue, Coinbase has focused on subscription and services revenue.

Optimistically, Coinbase’s total sales are now projected at $5.61 billion in fiscal 2024 which would be an 80% increase from $3.11 billion last year. Following a tougher to-compete-against year, FY25 sales are expected to dip -2% to $5.48 billion.

On the bottom line, annual earnings are expected to skyrocket to $5.39 per share this year compared to EPS of $0.37 in 2023. While Coinbase’s EPS is expected to contract to $3.15 in FY25, it's noteworthy that earnings estimate revisions have soared over the last two months with estimates at $1.87 per share 60 days ago. Plus, FY24 EPS estimates are up 4% during this period.

Diversification & Regulation

Outside of revenue growth, Coinbase’s main priorities have been on driving the utility (usage) and regulatory clarity of cryptocurrency. In regards to utility and regulation, Coinbase wants to keep increasing the economic freedom crypto offers to innovate the financial system and people’s daily lives.

Digital/Smart wallets along with payment solutions that make crypto more accessible have been at the forefront of Coinbase’s initiatives. The rally in Coinbase’s stock and Bitcoin, in particular, has been enhanced by the notion that President-elect Donald Trump is viewed as more supportive of cryptocurrency. Deeming himself as the pro-crypto candidate, Trump pledged to create a friendly regulatory environment for cryptocurrencies which should assist Coinbase’s initiatives.