Robinhood shares tank 15% after it loses users, forecasts weak revenue

3 months ago
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Vlad Tenev, co-founder and CEO of Robinhood rings the opening doorbell astatine the Nasdaq connected July 29th, 2021.

Source: The Nasdaq

Stock-trading app Robinhood gave a bleak gross forecast for the archetypal 4th of 2022 connected Thursday arsenic its latest net study showed a diminution successful users.

Shares of Robinhood tanked 15% successful aft hours trading.

The recently nationalist brokerage anticipates first-quarter gross of little than $340 million, down 35% compared to 2021.Wall Street's statement estimation was for $448.2 cardinal successful gross for Q1, according to FactSet.

Monthly progressive users fell to 17.3 cardinal past 4th from 18.9 cardinal successful the 3rd quarter. This fig was besides beneath estimates of 19.8 million, according to FactSet.

Meanwhile, nett cumulative funded accounts totaled 22.7 cardinal astatine the extremity of the fourth-quarter, astir in-line with estimates. This is up from 22.4 cardinal accounts successful the third-quarter.

For the 4th quarter, Robinhood reported 49 cents per diluted share, wider than the 45 cent nonaccomplishment estimation collected by Refinitiv. However, Robinhood posted $363 cardinal successful gross successful the last 3 months of 2021, somewhat supra analysts expectations of $362.1 million.

Robinhood is astir to look its toughest comps successful the archetypal and 2nd quarters of 2022 pursuing its grounds twelvemonth successful 2021 from events similar the GameStop abbreviated squeeze.

Robinhood's banal is much than 86% disconnected its astir caller precocious since the trading app's July 2021 nationalist debut. Shares are down much than 34% successful January, bringing its marketplace capitalization to little than $10 billion.

Fourth-quarter transaction-based gross was $264 million. Options trading made up $163 million, cryptocurrency trading added $48 cardinal and equities contributed $52 cardinal to transaction based gross successful Q4.

Some of Robinhood's banal weakness came aft its past net study erstwhile lighter cryptocurrency trading caused a large gross miss.

Third-quarter transaction based gross totaled $267 million, with lone $51 cardinal coming from cryptocurrency trading. Revenue from crypto trading totaled $233 cardinal successful the 2nd quarter, helped by involvement successful meme-inspired dogecoin.

For the 3rd quarter, full nett gross came successful astatine $365 million. Robinhood reported a nett nonaccomplishment of $1.32 billion, oregon $2.06 per share, successful the 3rd quarter.

Net cumulative accounts dropped to 22.4 cardinal successful the 3rd 4th from 22.5 cardinal successful the 2nd quarter.