Robinhood Q4 Earnings Highlights: Revenue, ARPU up Sequentially, Company in Complicated Deal Buying back FTX Shares from SBF
Stock and cryptocurrency trading firm Robinhood Markets (HOOD), which faces big challenges in 2021-2022 due to stock market correction and crypto winter, reported Q4 financial results after the market closed on Wednesday. Its shares rose over 5% in premarket on Thursday, February 9, despite missing estimates on the top and bottom lines.
Here are the HOOD’s key highlights.
Its Q4 revenue of $380 million grew 5% sequentially. The number appeared just shy of Wall Street's estimate of $397.1 million. The company still reported a Q4 loss of 19 cents a share, missing consensus estimate for a loss of just 14 cents a share.
In Q4, Robinhood's transaction revenue fell 11% sequentially to $186 million. Options trading revenue was flat, while cryptocurrency and stock trading revenue fell 24% and 32%, respectively.
However, as of the end of the reporting quarter, the company had accumulated net funding accounts of 23 million, posting an increase of approximately 50,000 from the previous quarter. Robinhood also unveiled MAU to 11.4 million monthly active users, down 800,000 from the previous quarter.
Having a real balance sheet of more than $6 billion, Robinhood sensationally announced its ongoing talks with the U.S. Department of Justice to acquire a 7.6% stake in the FTX from disgraced cryptocurrency tycoon Sam Bankman-Fried. However, the plan isn’t clear yet as the ownership of SBF has been disputed since the collapse of its cryptocurrency exchange last November. Similarly, client entities from FTX and bankrupt cryptocurrency lender BlockFi have filed claims, with BlockFi saying Robinhood stock has been pledged as collateral.
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