Robinhood’s legal costs soared from $1.4 million in 2019 to more than $136 million in July 2021. It was at the center of a trading mania for meme stocks in January last year.īut last year’s retail trading frenzy also precipitated a number of regulatory probes. Robinhood enjoyed a strong run during the pandemic, with homebound investors using its app to trade stocks and other assets. He said it was possible Robinhood will become profitable in 2022, but indicated 2023 was a more likely target depending on overall market conditions and the launch of new products. Still, Warnick said that “there is nothing to suggest our customers are disengaging.” Although revenue was a positive sign, its monthly active users declined 8% from the previous quarter to 17.3 million as retail investors pulled back from the market. Like many tech start-ups, Robinhood has yet to turn a profit following its IPO. Transaction-based revenue from cryptocurrencies jumped 304% to $48 million in the fourth quarter, while revenue from equity trading declined 35% to $52 million. “We think we’re in a really good position to start slowing that from here,” he said. On a call with reporters, Robinhood Chief Financial Officer Jason Warnick attributed much of the costs to share-based compensation and increasing headcount. Robinhood’s costs during the fourth quarter increased 162% from the previous year, contributing to the company’s net loss. 31, compared to $318 million a year earlier.Īnalysts on average had expected revenue of $362.14 million, according to IBES data from Refinitiv. Robinhood, in its third set of results as a public company, posted total revenue of $363 million for the fourth quarter ended Dec. The share price at its IPO in July last year was $38, and its record high in August was $85. Shares of Robinhood sank as much as 15% to $9.98 in extended trading following results. A year earlier, which was before its IPO, the company posted net income of $7 million or $0.01 per share. Robinhood reported a net loss of $423 million or $0.49 per share in the three months ended December. Commission-free brokerage Robinhood Markets Inc on Thursday posted a $423 million net loss in the latest quarter, and its shares tumbled as much as 15% in after-hours trade even as revenue edged past analysts’ estimates.
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