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Dec 31, 2021
Robinhood Q4 2021 Earnings Report
Robinhood's Q4 earnings were released, showing a revenue increase but a net loss compared to the previous year.
Key Takeaways
Robinhood's Q4 2021 earnings revealed a 14% increase in total net revenues to $363 million compared to Q4 2020. However, the company reported a net loss of $423 million, or $0.49 per diluted share, a significant downturn from the net income of $13 million, or $0.02 per diluted share, in the same quarter of the previous year.
Total net revenues increased by 14% to $363 million compared to Q4 2020.
Transaction-based revenues increased by 12% to $264 million compared to Q4 2020.
Net loss was $423 million, or $0.49 per diluted share, compared to a net income of $13 million, or $0.02 per diluted share, in Q4 2020.
Monthly Active Users (MAU) increased 48% to 17.3 million in December 2021 compared to December 2020.
Revenue by Segment
Forward Guidance
For the first quarter of 2022, Robinhood anticipates that total net revenues will be less than $340 million, which assumes some incremental improvement in trading volumes versus what we have seen so far.
Positive Outlook
- Incremental improvement in trading volumes is anticipated.
- Focus on long-term investing with tax-advantaged retirement accounts rolling out mid-year.
- Investment in spending and savings products to help customers build a portfolio.
- Introduction of instant debit card deposits and withdrawals in the coming months.
- Plans to start opening its crypto platform up to customers internationally in 2022.
Challenges Ahead
- Total net revenues are expected to be less than $340 million.
- Implies a year-over-year revenue decline of 35% compared to Q1 2021.
- Total net revenues are highly sensitive to various factors including new funded accounts and trading volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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