Coinbase CFO Anticipates Robust Fourth Quarter Due to Increased Crypto Adoption and Looser U.S. Regulations
Driven by growing mainstream acceptance of cryptocurrencies, Coinbase Global (NASDAQ:COIN) Chief Financial Officer Alesia Haas said Tuesday that the company is approaching the top range of its fourth-quarter 2024 guidance.
Haas reiterated Coinbase’s Q4 outlook at the Goldman Sachs Financial Services Conference: subscription and services revenue between $505 million and $580 million, transaction expenses in the mid-teens as a percentage of net income, and technology, development, and administrative expenses ranging from $690 million to $730 million. Forecasts for sales and marketing expenses are from $170 million to $220 million.
Haas pointed out that Coinbase wants to devote funds toward projects aiming at increasing the acceptance of cryptocurrencies, therefore guiding the business toward the upper end of its marketing budget forecasts. She said, the regulatory environment for cryptocurrencies is also improving as Congress and the White House project a pro-crypto posture following the U.S. elections. More legislative certainty, Haas argued, would hasten acceptance among financial institutions.
Its important to note that Coinbase stock has been on a superb run of late, gaining 91% in the past three months, and almost 12% in the past month alone. However, in the past five days, the stock has traded in the red.
This article first appeared on GuruFocus.
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