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Robinhood Shares Plunge On Earnings, Revenue Miss

Published 27/01/2022, 21:42
© Reuters
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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."

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