Webull Stock Falls As Q4 Profit Miss Disappoints Traders

• The company reported a total revenue jump of 50% year-over-year to $165.2 million. 
• This was helped by a 56% rise year-over-year in trading-related revenue. 
• Webull’s customer assets totaled $24.6 billion, an all-time high, representing 81% year-over-year growth, driven by market recovery and strong net deposits. 

Webull shares fell in extended hours of trading on Wednesday after it posted a fourth-quarter (Q4) profit that missed analyst estimates. 

The company posted net income per ordinary share of $0.01, below Wall Street estimates of $0.05 per share as per data from Fiscal.ai. 

Adjusted net income decreased to $14.6 million for the quarter, compared to $15.0 million for the prior year comparative quarter.

Shares in the company were down 2.3% at the time of writing. 

Earnings Snapshot

The company reported a total revenue jump of 50% year-over-year to $165.2 million. It was helped by a 56% rise in trading-related revenue year-over-year.

Webull launched corporate bond trading for U.S. customers in Q4, building on its previous rollout of U.S. government bond trading, which has enabled further user portfolio diversification.

It also entered into a partnership with Meritz Financial Group to offer South Korean investors access to U.S. equity markets. 

"We reported another quarter of strong financial performance, particularly in our equities and options businesses, which contributed to a significant full-year revenue increase," said H.C. Wang, Chief Financial Officer of Webull. "We're seeing robust returns on our strategic investment in marketing, innovation and addressable market expansion and are confident that we are positioning Webull to deliver lasting shareholder value."

Customer Assets At All-Time High

Webull’s customer assets totaled $24.6 billion, an all-time high, representing 81% year-over-year growth, driven by market recovery and strong net deposits, which grew 225% year-over-year. 

Its registered users increased 15% year-over-year to 26.8 million users and funded accounts increased to 5.0 million, representing 8% year-over-year growth.

How Did Stocktwits Users React?

Retail sentiment around BULL stock trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

One bullish user praised the earnings and called the stock undervalued. 

Shares in the company have fallen nearly 25% year-to-date. 

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