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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.
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
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.
- Actual results for total net revenues might differ materially from the outlook.
- Total operating expenses, excluding share-based compensation, are expected to increase 15-20% year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income