Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Robinhood Shares Plunge On Earnings, Revenue Miss

Published 01/27/2022, 04:25 PM
Updated 01/27/2022, 04:29 PM
© Reuters
HOOD
-

Investing.com — Robinhood (NASDAQ:HOOD) announced a loss per share of 49 cents on revenue of $362.71. Analysts polled by Investing.com anticipated a loss per share of 37 cents on revenue of $363 million.

In reaction to the report, the California-based broker's shares are down 15% after-hours.

Robinhood's total net revenue for the quarter increased 14% to $363 million, compared to $318 million in the fourth quarter 2020, while transaction-based revenues increased 12% to $264 million. Furthermore, options revenue in the fourth quarter increased 14% to $163 million, cryptocurrencies revenue was up 304% to $48 million, and equities decreased 35% to $52 million.

Robinhood's monthly active users increased 48% to 17.3 million in December 2021, compared with December 2020, but fell from the previous quarter's 18.9 million. However, average revenues per user for Q4 decreased 39% to $64 on an annualized basis, compared with $106 in the fourth quarter of 2020.

Looking ahead in the first quarter, Robinhood anticipates total net revenues will be less than $340 million, below analyst expectations.

Despite the fourth quarter revenue and earnings miss, Vlad Tenev, CEO and Co-Founder of Robinhood, was upbeat in his comments: "We had a momentous year, nearly doubling the number of customers on the platform and making critical investments in our team and infrastructure to support growth."

"This year, we'll expand our ecosystem of products that make Robinhood the best place to start investing and build wealth for the long term."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.