Coinbase IPO Model

Prepared by - Madhuri Thakur, Content Director at WallStreetMojo

Email: [email protected]
Website: www.wallstreetmojo.com
Learn step by step Financial Modeling here - https://www.wallstreetmojo.com/financial-modeling-in-excel/

Core Financial Statements

Income Statement
Balance Sheet
Cash Flows

Supporting Financial Modeling Schedules

Ratio Analysis
Revenue Built-up
Cost Sheet
Working Capital
Depreciation Schedule
Amortization Schedule
Shareholder's Equity
Debt Schedule
Shares Oustanding

Valuations
DCF Valuation
Relative Valuation

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Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019
Revenue
Net revenue 482.95
Other revenue 50.79
Total Revenue 533.74

Transaction expense (Cost of Revenue) 82.06

Gross Profit 451.68

Operating Expenses
Technology and development 185.04
Sales and marketing 24.15
General and administrative 231.93
Restructuring 10.14
Other operating expense 46.20
Total operating expenses 497.46

Operating income (loss) (45.78)

Other income, net (0.37)
Interest Expense
Income (loss) before provision for (benefit from) income taxes (45.42)
Provision for (benefit from) income taxes (15.03)
Net income (loss) (30.39)

Tax Rate 49%

EBITDA
Income from Operations (EBIT)
Add: Depreciation and Amortization
Add: Stock-based compensation
Adjusted EBITDA 24.27

Stock-based compensation 31.15

% Sales 5.8%

Net income (loss) per share attributable to common stockholders:

Basic (0.50)
Diluted (0.50)

Weighted-average shares of common stock used to compute net

income (loss) per share attributable to common stockholders:
 Basic 61.32
Diluted 61.32

Pro forma net income per share attributable to common

stockholders (unaudited):
Basic
Diluted

Pro forma weighted-average shares of common stock used to

compute pro forma net income per share attributable to common
stockholders (unaudited):
Basic
Diluted
Historicals Forecasts
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

1,141.17 5,753.4 4,805.4 4,888.2 5,622.6 6,221.6

136.31 203.8 254.4 267.2 275.2 283.4
1,277.48 5,957.21 5,059.87 5,155.41 5,897.79 6,505.02

135.51 714.9 556.6 567.1 530.8 455.4

1141.97 5242.35 4503.28 4588.31 5366.99 6049.67

271.73 774.4 657.8 670.2 766.7 650.5

56.78 744.7 607.2 618.6 707.7 520.4
279.88 774.4 657.8 670.2 707.7 455.4
- - - - - -
124.62 655.3 556.6 464.0 471.8 520.4
733.02 2,948.82 2,479.33 2,423.04 2,654.00 2,146.66

408.95 2,293.53 2,023.95 2,165.27 2,712.98 3,903.01

(0.25) 2.71 3.43 4.32 5.31 6.63
(10.54) (1.83) (0.80) (0.23) (0.15)
409.20 2,285.69 2,025.55 2,168.79 2,718.06 3,909.50
86.88 396.69 351.54 376.40 471.73 678.51
322.32 1889.00 1674.01 1792.39 2246.33 3230.99

27% 21% 21% 21% 21% 21%

2,293.53 2,023.95 2,165.27 2,712.98 3,903.01

48.26 63.75 81.48 94.75 109.40
327.65 278.29 283.55 324.38 357.78
527.35 2,669.43 2,365.99 2,530.29 3,132.11 4,370.19

69.89 327.65 278.29 283.55 324.38 357.78

5.5% 5.5% 5.5% 5.5% 5.5% 5.5%

1.58 10.326 9.150

1.40 
 68.67
91.21

1.76
1.57

182.95 182.95 182.95

205.58
Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Assets
Current Assets
Cash and cash equivalents 548.95 1,061.85
Restricted cash 34.12 30.79
Customer custodial funds 1,201.35 3,763.39
USDC 88.43 48.94
Accounts receivable, net of allowance 17.50 189.47
Income tax receivable 74.17 -
Prepaid expenses and other current assets 22.43 39.51
Total Current Assets 1,986.95 5,133.95

Crypto assets held 33.93 316.09

Lease right-of-use assets 123.39 100.85
Property and equipment, net 47.12 49.25
Goodwill 54.70 77.21
Intangible assets, net 70.14 60.83
Other non-current assets 75.56 117.24
Total Assets 2,391.77 5,855.41

Equity and Liabilities

Convertible preferred stock: 564.70 562.47
Stockholders’ (deficit) equity:
Additional paid-in capital 93.82 231.02
Accumulated other comprehensive income (0.72) 6.26
Retained earnings    403.99 726.30
Total stockholders’ (deficit) equity 497.09 963.58

Current liabilities
Custodial funds due to customers 1,106.82 3,849.47
Accounts payable and accrued expenses 45.45 85.11
Crypto asset borrowings - 271.30
Lease liabilities, current 23.78 25.27
Total of Crypto Assets borrowings and Lease liabilities 23.78 296.57
Other current liabilities 47.40 15.70
Total Current Liabilities 1,223.4 4,246.9

Lease liabilities, non-current 106.54 82.51

Total Liabilities 1329.99 4329.36

Total Equity and Liabilities 2,391.77 5,855.41

Check: 0.0 0.0

 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

5,986.54 7,724.67 9,545.39 11,691.78 14,842.45

- - - - -
- - - - -
48.94 48.94 48.94 48.94 48.94
979.27 831.76 847.46 969.50 1,069.32
- - - - -
178.72 151.80 154.66 176.93 195.15
7,193.47 8,757.16 10,596.46 12,887.15 16,155.85

316.09 316.09 316.09 316.09 316.09

100.85 100.85 100.85 100.85 100.85
76.30 77.02 59.92 35.50 (2.40)
77.21 77.21 77.21 77.21 77.21
342.95 582.08 827.02 1,110.57 1,429.36
117.24 117.24 117.24 117.24 117.24
8,224.11 10,027.65 12,094.80 14,644.61 18,194.21

793.49

3,742.70 5,695.00 7,770.93 10,341.64 13,930.41

3,849.47 3,849.47 3,849.47 3,849.47 3,849.47

489.63 381.22 388.42 363.56 311.88

- - - - -
89.36 75.90 77.33 88.47 97.58
4,428.5 4,306.6 4,315.2 4,301.5 4,258.9

52.95 26.06 8.64 1.47 4.87

4481.41 4332.65 4323.86 4302.97 4263.80

8,224.11 10,027.65 12,094.80 14,644.61 18,194.21

0.0 0.0 0.0 0.0 0.0

Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019
Cash flows from operating activities
Net income (loss) (30.4)
Adjustments for :
Depreciation and amortization 16.88
Impairment expense 2.25
Stock-based compensation expense 31.15
Provision for transaction losses and doubtful accounts (4.68)
Loss on disposal of property and equipment 9.07
Deferred income taxes (20.90)
Unrealized loss (gain) on foreign exchange (3.11)
Non-cash lease expense 13.32
Loss on investments 0.25
Change in fair value of contingent consideration -
Realized (gain) loss on crypto assets 5.66
Crypto assets received as revenue (11.41)
Crypto asset payments for expenses 11.62
Fair value adjustment on derivatives -
Changes in operating assets and liabilities:
USDC 35.30
Accounts receivable 30.70
Income tax receivable (1.91)
Other assets (38.59)
Custodial funds due to customers (130.12)
Accounts payable and accrued expenses (0.79)
Lease liabilities (11.03)
Other liabilities 16.12
(Increase) / Decrease in Working Capital
Net cash used in operating activities (a) (80.59)

Cash flows from investing activities

Purchase of property and equipment (33.52)
Proceeds from sale of property and equipment 2.29
Capitalized internal-use software development costs (6.95)
Business combination, net of cash acquired (5.70)
Purchase of investments (7.94)
Asset acquisition (55.39)
Proceeds from settlement of investments 0.37
Purchase of crypto assets (271.27)
Disposal of crypto assets 272.74
Net cash used in investing activities (b) (105.35)

Cash Flow available for Financing Activities (185.95)

Cash flows from financing activities

 Issuance of common stock upon exercise of stock options 4.35
Issuance of debt
Cash paid to repurchase equity awards (20.96)
Repayment of Liabilities
Net cash provided by financing activities (c) (16.61)

Net increase in cash, cash equivalents, and restricted cash (a+b+c) (202.55)
Effect of exchange rates on cash (0.17)
Cash, cash equivalents, and restricted cash, beginning of year 1,987.14
Cash, cash equivalents, and restricted cash, end of year 1,784.42
Historicals Forecasts
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

322.3 1,889.0 1,674.0 1,792.4 2,246.3 3,231.0

30.96 48.26 63.75 81.48 94.75 109.40

8.36
70.55 327.65 278.29 283.55 324.38 357.78
(2.97)
0.36
0.47
1.06
25.01
0.15
3.28
(23.68)
(94.16)
40.21
5.25

37.94
(157.16)
86.79
(48.68)
2,710.52
20.84
(25.00)
(8.35)
(450.83) 52.56 (9.94) (158.03) (160.60)
3,004.07 1,814.08 2,068.61 2,147.47 2,507.43 3,537.56

(9.91) (357.4) (303.6) (309.3) (353.9) (390.3)

-
(8.89)
33.62
(10.33)
-
0.30
(528.08)
574.12
50.82 (357.43) (303.59) (309.32) (353.87) (390.30)

3,054.89 1,456.65 1,765.01 1,838.14 2,153.56 3,147.26

 20.73
- - 10.0 20.0 10.0
(1.93)
(326.13) (26.89) (27.42) (27.17) (6.60)
18.80 (326.13) (26.89) (17.42) (7.17) 3.40

3,073.69 1,130.52 1,738.13 1,820.72 2,146.39 3,150.67

(2.08)
1,784.42 4,856.0 5,986.5 7,724.7 9,545.4 11,691.8
4,856.03 5,986.54 7,724.67 9,545.39 11,691.78 14,842.45
Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Ratio Analysis

Solvency Ratios
Current ratio 1.62 1.21
Cash ratio 0.45 0.25

Receivables turnover 30.51 6.74

Payables turnover 2.06
175.17

Operating Efficiency
Total asset turnover 0.22 0.22
Equity turnover 1.07 1.33

Operating Profitability
Gross Profit Margin 84.6% 89.4%
Operating Profit Margin -8.6% 32.0%
Net Profit Margin -5.7% 25.2%

Return on total capital (0.04) 0.25

ROE (Net Income / Common Equity) (0.06) 0.33

ROE DuPont Analysis

Profit Margin (0.06) 0.25
Asset Turnover 0.22 0.22
Financial Leverage 4.81 6.08
ROE (0.06) 0.33

Financial Risk Ratios

Debt to equity ratio 0.21 0.09
Debt ratio 0.56 0.74
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

1.62 2.03 2.46 3.00 3.79

1.35 1.79 2.21 2.72 3.49

6.08 6.08 6.08 6.08 6.08

2.29 1.18 1.48 1.39 1.29
1119.39 448.17 574.29 505.94 403.67

0.72 0.50 0.43 0.40 0.36

1.59 0.89 0.66 0.57 0.47

88.0% 89.0% 89.0% 91.0% 93.0%

38.5% 40.0% 42.0% 46.0% 60.0%
31.7% 33.1% 34.8% 38.1% 49.7%

0.60 0.35 0.28 0.26 0.28

0.50 0.29 0.23 0.22 0.23

0.32 0.33 0.35 0.38 0.50

0.72 0.50 0.43 0.40 0.36
2.20 1.76 1.56 1.42 1.31
0.50 0.29 0.23 0.22 0.23

0.01 0.00 0.00 0.00 0.00

0.54 0.43 0.36 0.29 0.23
Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Growth Analysis and Drivers

Transaction Revenue
Retail, net 432.919 1,040.246
% yoy 140%

Institutional 30.086 55.928

% yoy 86%

Total transaction revenue (a) 463.005 1,096.174

% yoy 137%

Subscription and services revenue

Custodial fee revenue 3.009 18.561
% yoy 517%

Staking revenue 0.188 10.413

% yoy 5439%

Earn campaign revenue 0.117 7.720

% yoy 6498%

Interest income 14.414 5.535

% yoy -62%

Other subscription and services revenue 2.216 2.764

% yoy 25%

Total Subscription and services revenue (b) 19.944 44.993

% yoy 126%

Other revenue
Crypto asset sales revenue 39.86 133.688
% yoy 235%

Corporate interest income 10.92 2.626

% yoy -76%

Total Other revenue (c) 50.786 136.314

% yoy 168%

Total revenue (a+b+c) 533.735 1,277.481

 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

5,201.23 3,952.93 3,676.23 3,786.52 3,900.11

400% -24% -7% 3.0% 3.0%

307.60 301.45 361.74 470.26 564.32

450% -2% 20% 30% 20%

5,508.83 4,254.39 4,037.97 4,256.78 4,464.43

403% -23% -5% 5% 5%

51.04 91.88 183.75 459.38 528.29

175% 80% 100% 150% 15%

31.24 123.39 135.73 203.60 285.04

200% 295% 10% 50% 40%

21.23 37.15 53.87 70.03 84.04

175% 75% 45% 30% 20%

69.19 83.03 99.63 104.61 120.30

1150% 20% 20% 5% 15%

71.86 215.59 377.29 528.20 739.48

2500% 200% 75% 40% 40%

244.563 551.041 850.274 1,365.829 1,757.155

444% 125% 54% 61% 29%

200.53 250.67 263.20 271.09 279.23

50% 25% 5% 3% 3%

3.28 3.77 3.96 4.08 4.21

25% 15% 5% 3% 3%

203.815 254.440 267.162 275.177 283.432

50% 25% 5% 3% 3%

5,957.212 5,059.867 5,155.408 5,897.787 6,505.017

Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020

Revenue 533.74 1,277.48

Operating Expenses:
Transaction expense 82.06 135.51
% Sales 15.4% 10.6%

Technology and development expenses 185.04 271.73

% Sales 35% 21%

Sales and marketing expenses 24.15 56.78

% Sales 5% 4%

General and administrative expenses 231.93 279.88

% Sales 43% 22%

Restructuring expenses 10.14 -

% Sales 2% 0%

Other operating expense 46.20 124.62

% Sales 9% 10%
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

5,957.21 5,059.87 5,155.41 5,897.79 6,505.02

714.87 556.59 567.09 530.80 455.35

12.0% 11.0% 11.0% 9.0% 7.0%

774.44 657.78 670.20 766.71 650.50

13.0% 13.0% 13.0% 13.0% 10.0%

744.65 607.18 618.65 707.73 520.40

12.5% 12.0% 12.0% 12.0% 8.0%

774.44 657.78 670.20 707.73 455.35

13.0% 13.0% 13.0% 12.0% 7.0%

- - - - -
0% 0% 0% 0% 0%

655.29 556.59 463.99 471.82 520.40

11.0% 11.0% 9.0% 8.0% 8.0%
Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Net Sales 533.74 1,277.48
Cost of Sales 82.06 135.51

Accounts receivable, net of allowance 17.50 189.47

Prepaid expenses and other current assets 22.43 39.51
Total Non Cash Current Assets 39.93 228.98

Accounts payable and accrued expenses 45.45 85.11

Other current liabilities 47.40 15.70
Total Current Liabilities 92.85 100.81

Net Working Capital (52.93) 128.17

(Increase) / Decrease in Working Capital (181.09)

Ratios & Assumptions

365
Accounts receivable, net of allowance 12.0 54.1

Prepaid expenses and other current assets 22.43 39.51

% of Sales 4.20% 3.09%

Accounts payable and accrued expenses 202.19 229.24

Other current liabilities 47.4 15.7

% of Sales 8.88% 1.23%
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
5,957.21 5,059.87 5,155.41 5,897.79 6,505.02
714.87 556.59 567.09 530.80 455.35

979.27 831.76 847.46 969.50 1,069.32

178.72 151.80 154.66 176.93 195.15
1,157.98 983.55 1,002.13 1,146.43 1,264.47

489.63 381.22 388.42 363.56 311.88

89.36 75.90 77.33 88.47 97.58
578.99 457.12 465.75 452.03 409.46

578.99 526.43 536.37 694.40 855.01

(450.83) 52.56 (9.94) (158.03) (160.60)

60 60 60 60 60

178.72 151.80 154.66 176.93 195.15

3.0% 3.0% 3.0% 3.0% 3.0%

250 250 250 250 250

89.36 75.90 77.33 88.47 97.58

1.5% 1.5% 1.5% 1.5% 1.5%
Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Net Sales 533.74 1,277.48
Capital Expenditures 88.91 9.91
Capital Expenditures as % of Net Sales 16.7% 0.8%

Beginning Net PP&E

Capital Expenditures
(Depreciation Expense)
(Asset Sales )
Ending Net PP&E 49.3

PPE (Break-up for 2020) Amount Useful Life

Furniture and fixtures 7.16 5
Computer equipment 2.82 5
Leasehold improvements 40.59 3
Capitalized software 22.82 3
Total 73.38

Total Capex
Breakup
Furniture and fixtures
Computer equipment
Leasehold improvements
Capitalized software

Furniture and fixtures - Straight Line Method

Useful Life 5
Furniture and fixtures 7.161
Depreciation Expense (existing)

Year Capex Useful Life

2021 5.81 5
2022 4.94 5
2023 5.03 5
2024 5.76 5
2025 6.35 5
(a) Depreciation: Furniture and fixtures

Computer equipment - Straight Line Method

Useful Life 5
Computer equipment 2.815
Depreciation Expense (existing)

Year Capex Useful Life

 2021 2.29 5
2022 1.94 5
2023 1.98 5
2024 2.26 5
2025 2.50 5
(b) Depreciation: Computer equipment

Leasehold improvements - Straight Line Method

Useful Life 3
Leasehold improvements 40.59
Depreciation Expense (existing)

Year Capex Useful Life

2021 32.95 3
2022 27.99 3
2023 28.52 3
2024 32.62 3
2025 35.98 3
(c) Depreciation: Leasehold improvements

Capitalized software - Straight Line Method

Useful Life 3
Capitalized software 22.82
Depreciation Expense (existing)

Year Capex Useful Life

2021 18.52 3
2022 15.73 3
2023 16.03 3
2024 18.34 3
2025 20.23 3
(d) Depreciation: Capitalized software

Total Depreciation Expense (a+b+c+d)

 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
5,957.21 5,059.87 5,155.41 5,897.79 6,505.02
59.57 50.60 51.55 58.98 65.05
1.0% 1.0% 1.0% 1.0% 1.0%

49.3 76.3 77.0 59.9 35.5

59.6 50.6 51.6 59.0 65.1
(32.52) (49.88) (68.65) (83.40) (102.95)

76.3 77.0 59.9 35.5 (2.4)

Proportion of Assets
9.8%
3.8%
55.3%
31.1%

FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

5.81 4.94 5.03 5.76 6.35
2.29 1.94 1.98 2.26 2.50
32.95 27.99 28.52 32.62 35.98
18.52 15.73 16.03 18.34 20.23

1.43 1.43 1.43 1.43 1.43

0.58 1.16 1.16 1.16 1.16

0.49 0.99 0.99 0.99
0.50 1.01 1.01
0.58 1.15
0.63
2.01 3.09 4.09 5.16 6.37

0.56 0.56 0.56 0.56 0.56

 0.23 0.46 0.46 0.46 0.46
0.19 0.39 0.39 0.39
0.20 0.40 0.40
0.23 0.45
0.25
0.79 1.21 1.61 2.03 2.51

13.53 13.53 13.53 13.53 13.53

5.49 10.98 10.98 10.98 10.98

4.66 9.33 9.33 9.33
4.75 9.51 9.51
5.44 10.87
6.00
19.02 29.18 38.60 48.79 60.22

7.61 7.61 7.61 7.61 7.61

3.09 6.17 6.17 6.17 6.17

2.62 5.24 5.24 5.24
5.34 5.34 5.34
3.06 6.11
3.37
10.69 16.40 24.37 27.42 33.85

32.52 49.88 68.65 83.40 102.95

Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020

Beginning Equity Balance

Net Income
Stock Based Compensation
Issuance/ (Repurchase) of Equity
Ending Equity Balance 963.6
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

1526.1 3742.7 5695.0 7770.9 10341.6

1889.0 1674.0 1792.4 2246.3 3231.0
327.6 278.3 283.5 324.4 357.8

3,742.7 5,695.0 7,770.9 10,341.6 13,930.4

Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Net Sales 533.7 1,277.5
Additions to Intangibles 289.112
Additions to Intangibles as % of Net Sales 22.6%

Beginning Net Intangibles

Additions to Intangibles
(Amortization Expense)
(Intangible Sales and write offs)
Ending Net Intangibles 60.8
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
5,957.2 5,059.9 5,155.4 5,897.8 6,505.0
297.9 253.0 257.8 294.9 325.3
5% 5% 5% 5% 5%

60.8 342.9 582.1 827.0 1110.6

297.9 253.0 257.8 294.9 325.3
(15.737) (13.865) (12.823) (11.346) (6.454)

342.9 582.1 827.0 1,110.6 1,429.4

Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Cash Flow Available for Financing Activities
Proceeds from/ (Repurchase of) Equity
+ Beginning Cash Balance
- Minimum Cash Balance
Cash Available for Debt Repayment
Long Term Debt Issuance
Long Term (committed Payments)
Cash Available for Revolving Credit Facility

Additional Revolving Credit Facility

Beginning Balance
Discretionary (Paydown)/ Borrowings
Ending Balance 296.573

Long Term (commited payments)

Beginning Balance
Issuance
(Repayment/ Amortization)
Ending Balance 82.508

Interest Expense Calculation

1) Revolving Credit Facility Average

Interest rate
Interest Expense (Revolving Credit)

2) Long Term (committed) Average

Interest rate
Interest Expense (Long Term)

Cash Balances

Average Cash Balance Average Cash Balance

Interest Rate Interest Rate
Interest Earned
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
1456.65 1765.01 1838.14 2153.56 3147.26
0 0 0 0 0
1061.85 5986.54 7724.67 9545.39 11691.78
(500) (500) (500) (500) (500)
2018.50 7251.56 9062.82 11198.95 14339.04
0.00 0.00 10.00 20.00 10.00
(29.6) (26.9) (27.4) (27.2) (6.6)
1988.94 7224.67 9045.39 11191.78 14342.45

296.57 0.00 0.00 0.00 0.00

(296.57) 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00

82.51 52.95 26.06 8.64 1.47

10 20 10
(29.6) (26.9) (27.4) (27.2) (6.6)
52.95 26.06 8.64 1.47 4.87

148.29 0.00 0.00 0.00 0.00

5.0% 5.0% 5.0% 5.0% 5.0%
7.41 0.00 0.00 0.00 0.00

67.73 39.51 17.35 5.06 3.17

4.62% 4.62% 4.62% 4.62% 4.62%
3.13 1.83 0.80 0.23 0.15

5421.29 6855.61 8635.03 10618.59 13267.11

0.05% 0.05% 0.05% 0.05% 0.05%
2.71 3.43 4.32 5.31 6.63
Coinbase IPO Model
(All Data is in Millions $, Except Per Share Information)

Common Shares

Current Structure
-
Basic Shares 68,671
Assumed Conversoin of Preferred Shares 114,247.00
Weighted Average Basic shares 182,918
Weighte Average Diluted Shares 261.3

Options Data

  
Outstanding at Dec 31 2019 (i)
Options granted
Options exercised
Cancelled/forfeited/expired
Outstanding at December 31, 2020 (i)

Total Number of outstanding options provided in the prospectus

(see below)
 Out of these 182.918 million shares, 114.850769 are available for RESALE
<< No new shares to be issued >> seems like a resale transaction
million shares Coinbase also announced that, as of April 12, 2021, Coinbase had a fully diluted capitalization of 261

Weighted-
Shares Subject to Average Exercise Weighted-Average Remaining Aggregate Intrinsic Value
Outstanding Options Price Contractual Life (Years) (in thousands)
37,758
32,201
(2,042)
(4,661)
63,256 14.84 8.17 2,527,396 

3,550,279
fully diluted capitalization of 261.3 million shares of Common Stock. This fully diluted capitalization share count includes the shares of Com
nt includes the shares of Common Stock outstanding and all outstanding stock options and restricted stock units but does not include share
t does not include shares of Common Stock reserved for future issuance under Coinbase’s equity compensation plans or its Pledge 1% com
ans or its Pledge 1% commitment.
Coinbase IPO Model Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019

EBIT
Free Cash Flow to Firm (FCFF)
EBIT x (1-t)
Add: Depreciation & amortization
Add: Stock Based Compensation
Less: Capex
Add: Change in working capital
FCFF
% yoy (FCFF)
Terminal Value

WACC Inputs

Cost of Equity & Cost of Debt

Risk Free Rate 1.73%

Beta 1.90
Equity Risk Premium 4.72%
Cost of equity 10.70%
Terminal Growth Rate 3.50%

Market Value of Equity

Current Stock Price 228.79
Current shares outstanding 261.30
Options/Warrants Converts
Fully converted shares
Fully converted equity value 59782.83

Calculating Book value of Debt

Short-Term Debt 296.6
Straight Long-Term Debt 82.5
Value of Debt 379.08

Calculating Debt to Equity ratio

Proporiton of Equity in the Capital Strucuture 99.4%
Proporiton of Debt in the Capital Strucuture 0.6%
Debt to equity ratio 0.006

WACC Calculations
Risk Free rate 1.73%
Market risk premium 4.7%
Levered beta of company 1.90
 Cost of equity 10.70%
Pre-tax cost of debt 4.62%
Tax rate 27.0%
After tax cost of debt 3.37%
WACC 10.65%

Free cash flow to firm of explicit period (2021E to 2040E)

Cash Flows
NPV of explicit period 33,906

Terminal value @ perpetual growth

Terminal value
NPV of terminal value 20,769

DCF Valuation Summary

DCF calculation as of Valuation Target (Year end)

NPV of explicit period 33,906 36,138
NPV of terminal value 20,769 22,981
Enterprise Value 54,675 59,119
+ Cash 1061.85 5986.54
- Debt (379.08) (52.95)
Equity value 55,357 65,053
+ Marketable securities, restricted cash 4,159 365
Adjusted Equity Value 59,517 65,418
Share Price 227.77 250.35

Sensitivity Analysis

227.77
1.0%
1.5%
Growth

2.0%
2.5%
3.0%
3.5%
Historicals
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

2,293.5 2,023.9 2,165.3 2,713.0 3,903.0

1,811.9 1,598.9 1,710.6 2,143.3 3,083.4

48.3 63.7 81.5 94.7 109.4
327.6 278.3 283.5 324.4 357.8
(357.4) (303.6) (309.3) (353.9) (390.3)
(450.8) 52.6 (9.9) (158.0) (160.6)
1,379.5 1,689.9 1,756.3 2,050.5 2,999.7
22.5% 3.9% 16.7% 46.3%
 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
1,380 1,690 1,756 2,050 3,000

0 0 0 0 0

WACC
9.00% 9.65% 10.00% 10.65% 11.00%
 Forecasts
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030

3,359.6 3,762.8 4,214.3 4,720.0 5,286.4

12% 12% 12% 12% 12%
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
3,360 3,763 4,214 4,720 5,286

0 0 0 0 0
Forecasts
FY 2031 FY 2032 FY 2033 FY 2034 FY 2035

5,815.1 6,396.6 7,036.2 7,739.8 8,513.8

10% 10% 10% 10% 10%
FY 2031 FY 2032 FY 2033 FY 2034 FY 2035
5,815 6,397 7,036 7,740 8,514

0 0 0 0 0
FY 2036 FY 2037 FY 2038 FY 2039 FY 2040

8,939.5 9,386.5 9,855.8 10,348.6 10,866.0

5% 5% 5% 5% 5%
157,250.63
FY 2036 FY 2037 FY 2038 FY 2039 FY 2040
8,940 9,386 9,856 10,349 10,866

0 0 0 0 157,250.63
Coinbase IPO Model
(All Data is in Millions $, Except Per Share Information)

Date 4-Jun-21

Comparable Company Analysis

Price # of shares Debt Cash

Comparable Peers
Paypal 263.04 1175.0 8939.0 4794.0
Square 213.69 455.4 3493.4 3158.0
NASDAQ 170.23 164.1 5930.0 2745.0
ICE 112.18 562.8 15954.0 583.0
Schwab 75.72 1886.0 371654.0 40348.0

Mean
Median

Coinbase 228.79 261.30 379.1 1061.9

EBITDA (consensus)
Comparable Peers FY2020A EBITDA Margin FY 2021E (Sales) FY 2022E (Sales)
Paypal 6463.00 29.99% 25720.0 31320.0
Square 357.12 4.27% 20400 22490
NASDAQ 1507.00 54.06% 3285 3429
ICE 3874.00 64.21% 6929 7185
Schwab 5346.00 50.91% 18050 18700
 EPS
Market Cap Enterprise Value EBITDA Net Income FY 2020 FY 2021

309072.0 313217.0 6463.00 4202.0 3.58 4.74

97308.0 97643.4 357.12 213.1 0.48 1.5
27933.0 31118.0 1507.00 933.00 5.67 6.86
63131.5 78502.5 3874.00 2089.00 3.79 4.92
142807.9 474113.9 5346.00 3299.0 2.13 3.19

3.13 4.24
3.58 4.74

59782.8 59100.1 439.9 322.3 1.58 10.33

EBITDA-2021 EBITDA-2022
7713.43 9392.87
871.08 960.32
1775.87 1853.72
4449.11 4613.49
9189.26 9520.17
EPS P/E (x) EV / EBITDA (x)
FY 2022 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022

5.89 73.5x 55.5x 44.7x 48.5 40.6 33.3

2.1 445.2x 142.5x 101.7x 273.4 112.1 101.7
7.16 30.0x 24.8x 23.8x 20.6 17.5 16.8
5.23 29.6x 22.8x - 20.3 17.6 17.0
3.42 35.5x 23.8x 22.1x 88.7 51.6 49.8

4.76 122.77 53.86 48.06 90.30 47.89 43.73

5.23 35.55 24.83 34.22 48.46 40.61 33.35

9.15 144.8 22.2 25.0 112.1 22.1 25.0