“There’s nothing about Coinbase that changes the thesis, despite the timing of the 4th quarter,” Street says

Coinbase’s outlook was little changed, even though it beat analysts’ expectations in the latest quarter, some Wall Street firms say. While the cryptocurrency exchange beat analysts’ profit and revenue estimates in its fourth-quarter earnings on Tuesday, it also posted user numbers that disappointed the Street. Coinbase reported a loss of $2.46 per share on revenue of $629 million. That was better than the loss of $2.55 per share on revenue of $590 million expected by analysts polled by Refinitiv. Meanwhile, the firm’s user base fell to 8.3 million monthly active users in the fourth quarter, down from 8.5 million in the previous quarter and StreetAccount’s estimate of 8.22 million. Bank of America’s Jason Kupferberg was impressed with the results, saying that despite the solid results, “nothing has changed in print.” He maintained an underperform rating with a $35 price target, indicating a 43% decline from Tuesday’s close of $62.07. Coinbase expects adjusted EBITDA “to improve in 2023 regardless of what the broader crypto market backdrop does, as the company plans to maintain OpEx discipline. Overall, the boost from higher rates to interest income helps stabilize the top line (although it represents lower quality earnings ) while OpEx controls helped stem losses,” Kupferberg wrote in a note Tuesday. “That said, we think COIN continues to face meaningful headwinds (regulatory, competitive, lack of revenue diversity) that keep us cautious,” Kupferberg added, maintaining has an underperform rating. Barclays’ Benjamin Budish was somewhat more bullish on Coinbase. He reiterated an equal weight rating on the stock but raised his price target to $63 from $57, roughly in line with where the stock closed on Tuesday. Budish cited recent layoffs at Coinbase and further cost reductions as positives for the stock, but he said investors should watch for a decline in retail engagement for the quarter. “Revenue beat , as lower transaction revenues were more than offset by higher interest income and lower operating traffic helped better EBITDA reduction. Looking ahead, the company appears to be repositioning itself to generate adjusted EBITDA under all market conditions. , vs. a longer-term ‘breakthrough’ stance,” Budish wrote in a note also on Tuesday. Coinbase debuted on the Nasdaq in 2021, along with other high-growth stocks that have since plunged as interest rates have risen. Coinbase shares fell 85% in 2022, but rebounded 75% in early 2023. — CNBC’s Michael Bloom contributed to this report.