Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Coinbase (NASDAQ:COIN) and the best and worst performers in the financial technology industry.
Financial technology companies benefit from the increasing consumer demand for digital payments, banking, and finance. Tailwinds fueling this trend include e-commerce along with improvements in blockchain infrastructure and AI-driven credit underwriting, which make access to money faster and cheaper. Despite regulatory scrutiny and resistance from traditional financial institutions, fintechs are poised for long-term growth as they disrupt legacy systems by expanding financial services to underserved population segments.
The 4 financial technology stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
Luckily, financial technology stocks have performed well with share prices up 13% on average since the latest earnings results.
Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Coinbase reported revenues of $1.78 billion, down 21.6% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and EBITDA estimates.
Coinbase delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 45.5% since reporting and currently trades at $205.33.
Is now the time to buy Coinbase? Access our full analysis of the earnings results here, it’s free.
Using the same comparison model that revolutionized travel booking, LendingTree (NASDAQ:TREE) operates an online platform that connects consumers with financial service providers across mortgages, personal loans, credit cards, insurance, and other financial products.
LendingTree reported revenues of $319.7 million, up 22.2% year on year, outperforming analysts’ expectations by 11.5%. The business had an incredible quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
LendingTree delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $40.15.