logo
Here's Why Sales & Marketing Spend is Pivotal for Coinbase

Here's Why Sales & Marketing Spend is Pivotal for Coinbase

Yahoo01-07-2025
Coinbase Global's COIN sales and marketing (S&M) spend is driving brand credibility, user acquisition and deeper customer engagement. In 2024, Coinbase nearly doubled its S&M spend to $654 million, an increase of 97% year over year, primarily due to higher digital advertising and expanded USDC rewards aimed at retaining assets on the platform. These efforts yielded strong results as monthly transacting users (MTUs) rose 14% to 8.4 million, assets on the platform more than doubled to $404 billion, and trading volume surged 148% to $1.16 trillion.The close alignment between S&M spending and user activity demonstrates a strong return on investment. Notably, stablecoin-based rewards helped lift subscription and services revenues by boosting average on-platform balances. In the first quarter of 2025, S&M expense reached $247 million, more than double year over year, driving a 17% increase in transaction revenues. Sales and marketing spend accounted for 10% of total revenues in 2024 and rose to 12% in the first quarter of 2025. Management estimates sales and marketing spend between $215 million and $315 million in the second quarter of 2025.Coinbase's strategic use of marketing supports scalable growth, asset locking and monetization opportunities across its ecosystem. While increased S&M outlays may put pressure on margins in the near term, historical data suggests that every incremental marketing dollar has driven meaningful growth in volume and recurring income. As such, disciplined S&M investment remains a value-accretive driver of Coinbase's long-term shareholder returns.
Marketing expenses are critical to Robinhood Markets' HOOD performance, helping the platform attract and retain a broad base of retail investors in a competitive fintech landscape and supporting growth in assets under custody and transaction-based revenues. Robinhood's marketing expenses increased 57% year over year in the first quarter of 2025 and constituted 26.4% of total revenues.Sales and marketing spending is also essential to Block Inc.'s XYZ growth, fueling expansion across its broad suite of financial services and strengthening relationships in a competitive fintech landscape. For Block, S&M increased 13.6% year over year in the first quarter of 2025 and constituted 8.7% of total revenues.
Shares of COIN have gained 37.3% year to date, outperforming the industry.
Image Source: Zacks Investment Research
COIN trades at a price-to-earnings value ratio of 60.33, above the industry average of 19.74. But it carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved up 10.3% and 7.1%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 22.8% and 2.7%, respectively.
Image Source: Zacks Investment Research
The consensus estimate for COIN's 2025 and 2026 revenues indicates year-over-year increases. While the consensus estimate for COIN's 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase. COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
Block, Inc. (XYZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

McDonald's (MCD) Declares US$1.77 Quarterly Dividend Payable September 2025
McDonald's (MCD) Declares US$1.77 Quarterly Dividend Payable September 2025

Yahoo

time30 minutes ago

  • Yahoo

McDonald's (MCD) Declares US$1.77 Quarterly Dividend Payable September 2025

On July 22, 2025, McDonald's reaffirmed its quarterly dividend of $1.77 per share, reinforcing its dedication to shareholder value, with the payment scheduled for mid-September. Meanwhile, the S&P 500 hit new highs amidst trade deal optimism, buoying broader market sentiment and echoing the upward trend with a 1.3% rise over the past week. Amid this favorable backdrop, McDonald's saw its share price climb by 4.07% over the last month, aligning with bullish market conditions, suggesting that the dividend announcement and positive market trends may have supported this gain. We've discovered 2 weaknesses for McDonald's that you should be aware of before investing here. This technology could replace computers: discover the 26 stocks are working to make quantum computing a reality. The recent announcement from McDonald's reaffirming its dividend of US$1.77 per share underscores its ongoing commitment to delivering shareholder value. Despite economic challenges and competitive pressures outlined in the narrative, this move is likely to reinforce investor confidence. This confidence could support further revenue growth as emphasized by the company's strategy focused on value offerings and menu innovations aimed at attracting a wider consumer base. As McDonald's leverages digital engagement and partnerships to improve operational efficiencies, the dividend payment might also signal positive future cash flow projections, potentially aiding its earnings growth forecast. Over the past five years, McDonald's shares have yielded a total return of approximately 70.91%, including dividends, which highlights the company's resilience and growth capacity. This performance, juxtaposed with a one-year underperformance against the US Hospitality industry (which returned 29.6%), suggests a robust long-term traction in its business operations. While short-term fluctuations have seen McDonald's underpeform its industry, the longer-term gains reflect a steady upward trajectory amidst varied market conditions. Regarding the price movement, the recent climb in share price by 4.07% positions McDonald's at US$299.17, just below the consensus analyst price target of US$328.79. The proximity of the current price to the target indicates a belief in McDonald's fundamental strengths, yet also suggests limited immediate upside unless the company can materially exceed growth forecasts in revenue and earnings. The narrative's emphasis on economic instability and competitive pressures might pose challenges; however, if McDonald's can effectively capture market share through targeted campaigns and menu innovation, it may align more closely with analyst expectations and potentially uplift its market valuation further. Evaluate McDonald's historical performance by accessing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MCD. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio

Rare 50 cent coin sells for $3,050 due to ‘unique' reason
Rare 50 cent coin sells for $3,050 due to ‘unique' reason

Yahoo

timean hour ago

  • Yahoo

Rare 50 cent coin sells for $3,050 due to ‘unique' reason

An extremely rare 50 cent coin has sold for more than $3,000 at auction due to a mistake that happened during the minting process. If you spot an error on one of your coins, it could be worth more than its face value to collectors because of its rarity. The 2002 50 cent coin was mistakenly struck on a Samoan Tala coin, which is seven-sided and made out of nickel brass. The coin is thought to be totally 'unique', with no other examples of the error coin seen before. Roxbury's director Scott Waterman, who auctioned off the coin, told Yahoo Finance there was 'nothing similar' to the coin. RELATED Rare 5 cent coin worth 25,000 times its value due to 'double headed' detail Terrifying superannuation reality facing 4.3 million Australians hoping for comfortable retirement Major warning after Aussie receives random $350 payment in her bank account 'It's a different alloy as well, which makes it quite eye-catching. It's very, very unusual that one, unique as I understand it. So anything that is unique is literally there's one of it,' he said. The coin ended up selling at auction for $3,050, after being found in circulation. Waterman said the error was 'pretty crazy' and very 'unusual'. 'The Royal Australian Mint strikes a lot of other countries in the region, their coins as well. So very, very occasionally one will cross over and I think that's what's happened here,' he said. Waterman said error coins were a rare occurrence since decimal currency was introduced by Australia in February 1966, but they still exist. 'Relatively speaking, they're exceptionally rare in Australia compared to other countries and they're very well supported. We see really high prices for good error coins in Australia relative to other countries,' he said. Other coins struck on the wrong die have also fetched more than their face value. A 2000 $1 coin with its obverse struck with a 10 cent die sold at auction for $1,150 in uncirculated condition. This is known as a 'mule coin' where the coin is struck with mismatched dies on the heads and tails. Another of the $1 coins with the heads side struck on a 10 cent die fetched $375 at auction in circulated in retrieving data Sign in to access your portfolio Error in retrieving data

Tariff Noise Receding Into the Background for Markets, Rainwater Equity CEO Says
Tariff Noise Receding Into the Background for Markets, Rainwater Equity CEO Says

Yahoo

time2 hours ago

  • Yahoo

Tariff Noise Receding Into the Background for Markets, Rainwater Equity CEO Says

Rainwater Equity Founder and CEO Joseph Shaposhnik says he views "the S&P 500 in the US as the great growth stock of all countries today." He tells Bloomberg Television that President Trump's ongoing trade deals will "be positive" for US stocks as they lessen "the uncertainty that has faced the markets for the last six months." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store