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Mar 31, 2022
Robinhood Q1 2022 Earnings Report
Robinhood's Q1 2022 results reflected the impact of the macroeconomic environment on its customers, while the company progressed on its long-term plans and product development.
Key Takeaways
Robinhood's Q1 2022 total net revenues decreased by 43% to $299 million compared to Q1 2021. The net loss was $392 million, or $0.45 per diluted share. Monthly Active Users (MAU) decreased by 10% to 15.9 million, and Average Revenues Per User (ARPU) decreased by 62% to $53.
Total net revenues decreased 43% to $299 million compared to Q1 2021.
Transaction-based revenues decreased 48% to $218 million compared to Q1 2021.
Net loss was $392 million, or $0.45 per diluted share, compared to a net loss of $1.4 billion in Q1 2021.
Monthly Active Users (MAU) decreased 10% to 15.9 million for March 2022.
Robinhood
Robinhood
Robinhood Revenue by Segment
Revenue by Segment
Cryptocurrencies Revenue
CapyFin.comOptions Revenue
CapyFin.comEquities Revenue
CapyFin.comNet Interest Revenue
CapyFin.comOther Revenues Revenue
CapyFin.com Forward Guidance
Robinhood anticipates recording a restructuring benefit of approximately $7–$19 million in the second quarter of 2022. They expect total operating expenses, excluding share-based compensation, for full year 2022 to increase by approximately 2%–5% year-over-year and share-based compensation to decline by approximately 42%–47% year-over-year.
Positive Outlook
- Tax-advantaged retirement accounts remain on track, with the goal of providing early access to an initial set of customers later this year.
- The company signed an agreement to acquire Ziglu Limited, which will help accelerate global expansion efforts.
- Robinhood is focused on long-term investing, spending and savings.
- Robinhood is helping customers move money faster.
- Robinhood is opening up its crypto platform to customers internationally.
Challenges Ahead
- Total operating expenses excluding share-based compensation will further increase by $17-$23 million due to cash restructuring and related charges.
- GAAP total operating expenses for full year 2022 will further decrease due to a restructuring benefit of approximately $7-$19 million.
- SBC for full year 2022 will further decrease by $30-$36 million resulting from reversals of previously recognized share-based compensation.
- The company no longer intends to provide revenue guidance.
- Actual results might differ materially from our outlook due to several factors, including the rate of growth in net new funded accounts which affects several costs including variable marketing costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income