1. Financial Health Check
- Revenue: $6.56B
- Net Income: $2.58B
- Net Margin: 39.29%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2024 | 6.56B | 2.58B | 4.91B | 2.56B |
| 2023 | 3.11B | 94.87M | 1.97B | 922.95M |
| 2022 | 3.19B | -2.62B | 2.56B | -1.59B |
| 2021 | 7.84B | 3.62B | 6.10B | 4.04B |
| 2020 | 1.28B | 322.32M | 1.14B | 3.00B |
4. Competitive Advantage (Moat)
- Type of Moat: Network Effect & Intangible Assets
- Strength: Wide
- Description: Coinbase possesses a strong brand, positioning it as the most trusted name in crypto. The platform also exhibits network effects, driven by its growing user base and partnerships, making it a partner of choice for institutions entering the crypto space.
5. Management Quality
- CEO: Brian Armstrong
- Capital Allocation: Focus on M&A (Deribit, Echo), reinvestment in headcount to capitalize on opportunities, and building the Everything Exchange. Focus on organic expansion by improving features.
- Tone: Optimistic
- Key Quotes:
- "Coinbase is the most trusted brand in crypto with deep technical expertise. And as finance moves to these rails with increasing regulatory clarity, we're uniquely positioned to lead and capture the upside of this paradigm shift."
- "Crypto rails will power more and more of financial services over time because they're faster, cheaper and more global."
6. Growth Prospects
- Total Addressable Market (TAM): [Size and Growth Rate]
- Market Share: [Current share and potential to gain]
- New Products/Services: [Pipeline]
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1: Increased competition from new and existing crypto exchanges.]
- [Risk 2: Operational infrastructure challenges, including potential cloud service provider outages.]
- [Risk 3: Ecosystem risks from operational errors that then lead to deleveraging events.]
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?