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Jun 30, 2022
Robinhood Q2 2022 Earnings Report
Robinhood's financial performance saw revenue increase and net loss decrease, driven by product enhancements and cost management.
Key Takeaways
Robinhood's Q2 2022 results showed sequential growth in total net revenues and a reduction in net loss. The company focused on enhancing its platform with new products and features, while also managing costs through restructuring efforts. Key metrics such as net deposits and ARPU improved, despite a decrease in monthly active users and assets under custody.
Total net revenues increased by 6% sequentially to $318 million.
Net loss improved to $295 million, a decrease from $392 million in the previous quarter.
Net deposits were $5.2 billion, representing a 22% annualized growth rate.
Monthly Active Users (MAU) decreased to 14.0 million.
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 GAAP total operating expenses to be in the range of $2.46 billion to $2.60 billion, total operating expenses excluding share-based compensation to be in the range of $1.70 billion to $1.76 billion, and share-based compensation to be in the range of $760 million to $840 million for the full year 2022.
Positive Outlook
- GAAP total operating expenses for full-year 2022 to be in the range of $2.46 billion to $2.60 billion, representing a decrease of approximately 25% to 29% from the prior year.
- Total operating expenses, excluding share-based compensation, for full-year 2022 to be in the range of $1.70 billion to $1.76 billion, representing a decrease of approximately 7% to 10% from the prior year.
- Share-based compensation for full-year 2022 to be in the range of $760 million to $840 million, representing a decrease of approximately 47% to 52% percent from the prior year.
- Includes severance and other restructuring charges of $17 million in connection with the April 2022 Restructuring and an estimated $45 million to $60 million in connection with the August 2022 Restructuring
- Includes the benefit of share-based compensation reversal of $24 million in connection with the April 2022 Restructuring and an estimated share-based compensation reversal of $40 million to $50 million in connection with the August 2022 Restructuring.
Challenges Ahead
- 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
- The degree to which we are successful in preventing fraud
- Our ability to manage web-hosting expenses efficiently
- Our ability to achieve productivity improvements in customer service
- In connection with the August 2022 Restructuring, our actual share-based compensation reversal might differ from our estimate due to future changes in our stock price.
Revenue & Expenses
Visualization of income flow from segment revenue to net income