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Mar 31, 2023
Robinhood Q1 2023 Earnings Report
Reported a sequential revenue increase driven by net interest revenue and growth in interest-earning assets, while also experiencing a net loss impacted by a one-time share-based compensation expense.
Key Takeaways
Robinhood's Q1 2023 results showed sequential growth in total net revenues, driven by net interest revenue and transaction-based revenues. The company experienced a net loss, which included a significant impact from a one-time share-based compensation expense. However, adjusted EBITDA increased, and key metrics like net cumulative funded accounts, monthly active users, and assets under custody also saw positive growth.
Total net revenues increased 16% sequentially to $441 million.
Net interest revenue increased 25% sequentially to $208 million.
Net loss was $511 million, or EPS of -$0.57, impacted by a one-time share-based compensation expense.
Adjusted EBITDA (non-GAAP) increased 40% sequentially to $115 million.
Robinhood
Robinhood
Robinhood Revenue by Segment
Revenue by Segment
Cryptocurrencies Revenue
CapyFin.comOptions Revenue
CapyFin.comEquities Revenue
CapyFin.comNet Interest Revenue
CapyFin.com Forward Guidance
Robinhood anticipates GAAP total operating expenses for full-year 2023 to be in the range of $2.345 billion to $2.485 billion. Total operating expenses prior to SBC for full-year 2023 are expected to be in the range of $1.42 billion to $1.48 billion. SBC for full-year 2023, including the 2021 Founders Award Cancellation, is expected to be in the range of $925 million to $1.005 billion.
Positive Outlook
- Improved expense outlook for 2023.
- Full-year 2023 GAAP total operating expenses expected to be in the range of $2.345 billion to $2.485 billion.
- Full-year 2023 total operating expenses prior to SBC expected to be in the range of $1.42 billion to $1.48 billion.
- Full-year 2023 SBC, including the 2021 Founders Award Cancellation, expected to be in the range of $925 million to $1.005 billion.
- Expense outlook improved based on Q1 2023 results.
Challenges Ahead
- Actual results might differ materially from the outlook due to several factors.
- Rate of growth in net new funded accounts affects several costs including variable marketing costs.
- Success in preventing fraud can impact the expense outlook.
- Ability to manage web-hosting expenses efficiently is a factor.
- Ability to achieve productivity improvements in customer service is a consideration.
Revenue & Expenses
Visualization of income flow from segment revenue to net income