Robinhood (NASDAQ:HOOD) were on the march Thursday after the retail brokerage reported a revenue beat, with $441 million in the first quarter against analyst estimates of $425 million, according to Refinitiv. Robinhood also showed growth in monthly users, which hit 11.8 million.
In addition, the stock-trading app company trimmed its guidance for 2023 GAAP total operating expenses to $2.345 Billion-$2.485 Billion vs. its previous guidance of $2.375 Billion-$2.515 Billion; compares with Visible Alpha consensus of $2.45 Billion. Excluding share-based compensation, Robinhood expects operating expenses of $1.420 Billion-$1.480 Billion, unchanged from its previous guidance.
Q1 GAAP EPS of -$0.57 vs. -$0.61 consensus, -$0.19 in Q4 and -$0.45 in Q1 2022.
Q1 net revenue of $441 Million, topping the $426.8 Million consensus, rose from $380 Million in Q4 2022 and from $299 Million in Q1 2022.
Net interest revenue increased 25% Q/Q to $208 Million, driven by growth in interest earnings assets, increased securities lending activity, and higher short-term interest rates.
Monthly active users rose to 11.8 Million from 11.4 Million in the prior quarter. Assets under custody increased 26% Q/Q to $78 Billion, primarily on higher market valuations for growth stocks and crypto assets and continued net deposits.
Net deposits were $4.4 Billion during the quarter, translating to an annualized growth rate of 29% relative to AUC at the end of Q4 2022. That compares with $4.8 Billion and 30% growth in Q4 2022 and $5.7 Billion and 23% annualized growth in Q1 2022.
HOOD shares climbed 59 cents, or 6.6%, to $9.66.
