It’s another busy day of earnings, but we’re keeping this one light by focusing on DoorDash and Robinhood. Let’s see how these retail favorites performed. đ
Starting with Robinhood, which reported its first GAAP profitable quarter. The retail brokerage posted $0.03 of earnings per share on $486 million in revenues. Analysts had expected a $0.01 per share loss on $473 million in revenue. With that said, the primary driver of the surprise profit was a $484 million decline in operating expenses due to the cancellation of its founders’ stock-based compensation.
On the services side, net interest revenue rose 13% QoQ to $234 million due to asset growth, higher short-term interest rates, and increased securities lending. Its assets under custody (AUC) also rose 13% QoQ to $89 billion, driven by $4.1 billion in net deposits and higher equity valuations. đ°
On the transaction-based side, revenues fell 7% QoQ to $193 million. Options fell 5% to $127 million, cryptocurrencies fell 18% to $31 million, and equities fell 7% to $25 million. With that said, the company says its experimental 24-hour trading program is off to a strong start.
Monthly active users (MAUs) dropped by 1 million QoQ to 10.8 million. However, average revenue per user (ARPU) rose about 10% from $77 to $84 QoQ. đē
Overall, the company’s efforts to cut costs and become a full-service brokerage that relies less on transaction-based revenue continue to pay off. However, Wall Street remains concerned about its ability to compete with other brokers and retain client assets long-term.
$HOOD shares fell nearly 10% on the day, retreating from the same price level as November. đ
On the other hand, DoorDash is continuing its recent run after reporting new records for total orders and revenue. đ¤Š
The food service delivery company’s revenues rose 33% YoY to $2.13 billion, topping the $2.06 billion expected. Total orders rose 25% YoY to 532 million, with marketplace gross order volume increasing 26% YoY to $16.4 billion.
Although the company lost $172 million on a GAAP basis, investors are happy to see its diversification beyond restaurants is paying off. Grocery and convenience store deliveries accelerated in the quarter, and consumer spending remains more resilient than anticipated. As a result, executives boosted their third-quarter and full-year forecasts. đĒ
$DASH shares are up about 4% after hours. đ
