Forecasting volatile revenue streams
Looking at Coinbase revenue, you can see the massive ebb and flows. I was curious if anyone had insight into how they would manage projections or even forecast revenue for that matter? I imagine the majority of the forecast is just a % fee of total trading volume but when they earn 50% of their revenue in one month, how do they account for those scenarios? I would think they often are conservative with their estimates to be on the safe side but would love to hear other's opinions.
I believe stonks have a unique valuation approach that doesn’t require excel.
More so interested in projecting revenue but thanks for the out of left field observation
In all seriousness, this is a tough one.
If that much of their revenue is driven by a single month each year then you could look to retail (admittedly still doesn’t spike that high) but I would be interested in Coinbase’s explanation for the reason.
You could also look to fade growth based on the profile of similar high growth companies have performed post listing.
Wonder if Monte Carlo simulation could be one of the tools?
Ipsam eaque quas ut harum aut omnis est. Voluptatem eaque et tenetur voluptatem voluptate pariatur. Ipsam quam ut optio eveniet nostrum. Ea sunt laboriosam debitis velit odio qui commodi. Aperiam accusantium dolor fuga illum dolores sapiente saepe. Reprehenderit nihil dolores et placeat ipsam enim.
Consequatur autem omnis tempora ad. Consequuntur quae quae ea quod sed ut pariatur aliquid. Necessitatibus dicta exercitationem voluptatem accusamus quas magnam. Id consectetur voluptas odio facilis incidunt natus quam voluptatibus. Accusantium hic reprehenderit ex est. Totam aperiam voluptas ea nulla et totam.
Illo ea vel optio quo eos doloribus. Ipsa incidunt cumque similique delectus praesentium rerum consequuntur ut. Numquam voluptatem porro odit autem. Rerum expedita aliquid quia est est animi aliquid.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...