Shares of online brokerage Robinhood (HOOD) plunged 15% in after hours trading after the company reported disappointing earnings and issued a weak revenue forecast for the current first quarter.
Robinhood said it anticipates first-quarter revenue of less than $340 million U.S., down 35% compared with 2021. Wall Street’s consensus estimate was for $448.2 million U.S. in revenue for Q1, according to data from FactSet.
Monthly active users on Robinhood fell to 17.3 million last quarter from 18.9 million in the third quarter. This number was also below analyst estimates of 19.8 million.
For the fourth quarter, Robinhood reported a net loss of $423 million U.S., or a 49 cent U.S. loss per diluted share, wider than the 45 cent U.S. loss estimated by Wall Street. However, Robinhood posted $363 million U.S. in revenue during the final three months of 2021, slightly above analysts expectations of $362.1 million U.S.
Robinhood’s stock is more than 86% off its most recent high since the trading app’s July 2021 public debut. Shares are down more than 34% this month alone, bringing its market capitalization to less than $10 billion U.S.
Average revenue per user at Robinhood decreased by 39% to $64 U.S. year-over-year from $106 U.S.
Looking ahead to 2022, Robinhood said it will build products intended to support long-term investing, as well as products in spending and savings accounts. Some of these products will include debit card deposits and withdrawals.
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