Winners And Losers Of Q1: Coinbase (NASDAQ:COIN) Vs The Rest Of The Financial Technology Stocks

Looking back on financial technology stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Coinbase COIN and its peers.

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 slower Q1. As a group, revenues missed analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.2% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Widely regarded as the face of crypto, Coinbase COIN is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.

Coinbase reported revenues of $1.41 billion, down 29.7% year on year. This print fell short of analysts’ expectations by 6.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA estimates.

Coinbase delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The market seems disappointed with the results as the stock is down 18.5% since reporting and currently trades at $157.18.

Read our full report on Coinbase here, it’s free.

Using the same comparison model that revolutionized travel booking, LendingTree 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 $327.3 million, up 36.5% year on year, outperforming analysts’ expectations by 1.9%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

LendingTree delivered the highest guidance raise, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7% since reporting. It currently trades at $46.10.

With a mission to democratize finance, Robinhood HOOD is an online consumer finance platform known for its commission-free stock and crypto trading.

Robinhood reported revenues of $1.07 billion, up 15.1% year on year, falling short of analysts’ expectations by 5.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 21.4% since the results and currently trades at $99.65.

Read our full analysis of Robinhood’s results here.

With Amazon founder Jeff Bezos as an early investor, Remitly RELY is an online platform that enables consumers to safely and quickly send money globally.

Remitly reported revenues of $452.8 million, up 25.2% year on year. This number topped analysts’ expectations by 3.2%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Remitly achieved the biggest analyst estimate beat but had the weakest guidance update and weakest full-year guidance update in the group. The stock is up 3.9% since reporting and currently trades at $24.65.

Read our full, actionable report on Remitly here, it’s free.