It’s been a rough time for Robinhood recently, with falling markets pressuring trading activity among retail investors. With that said, its share price is sitting near the same level as a year ago, leading many to question whether a turnaround is in the works. 🤔
Today the company reported its eighth straight quarterly net loss. However, its loss per share of $0.19 improved from last year’s $0.49 per share loss. Meanwhile, revenues rose 5% YoY to $380 million as net interest revenue surged 165% to $167 million. 🤑
Other stats investors were watching included:
- Net Cumulative Funded Accounts rose by 50k QoQ to 23 million
- Monthly Active Users (MAUs) fell by 800,000 QoQ to 11.4 million
- Assets Under Custody fell 4% QoQ to $62 billion
- Net Deposits grew at a 30% annualized rate to $4.8 billion
- Average Revenues Per User (ARPU) up from $63 to $66 QoQ
The company’s efforts to cut costs and further monetize its user base created mixed results. It’s safe to say a rising rate environment was the company’s saving grace. The higher yield it offers on uninvested brokerage cash helped attract additional customers to its premium “Gold Tier” offering. And net interest revenue accounted for roughly 44% of its total revenue.
Overshadowing the results was the board of directors’ decision to buy back the 55 million shares bought by Sam Bankman-Fried last year via the FTX subsidiary Emergent Fidelity Technologies. That represents roughly 7% of the company’s outstanding shares. However, there’s limited precedent for this situation, so the timeline and share price of the repurchase remains to be seen. 💰
So far, investors appear pleased with the results. $HOOD shares are up roughly 4.20%. 👍
