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Dec 31, 2022
Robinhood Q4 2022 Earnings Report
Robinhood's financial performance for Q4 2022 showed sequential revenue growth and a reduced net loss, driven by net interest revenue, while actively managing costs and focusing on product development.
Key Takeaways
Robinhood's Q4 2022 results revealed a 5% sequential increase in total net revenues to $380 million. Net loss improved to $166 million, with EPS at -$0.19. Key drivers included a 30% rise in net interest revenue and cost management efforts, despite a decrease in transaction-based revenues. The company is also focusing on future growth opportunities, including a potential share repurchase.
Total net revenues increased 5% sequentially to $380 million.
Net loss improved to $166 million, with EPS at -$0.19.
Net interest revenue rose 30% sequentially to $167 million.
Adjusted EBITDA was positive $82 million, a 74% sequential improvement.
Revenue by Segment
Forward Guidance
Robinhood anticipates GAAP total operating expenses for full-year 2023 to range from $2.375 billion to $2.515 billion. Total operating expenses prior to share-based compensation are expected to be between $1.420 billion and $1.480 billion, with share-based compensation projected to be in the range of $955 million to $1.035 billion, including a one-time accounting charge of approximately $485 million related to the cancellation of founder share-based compensation in Q1 2023.
Positive Outlook
- Cost reduction initiatives are expected to lower operating expenses.
- Share-based compensation is projected to decrease in 2023.
- Focus on product development and customer service improvements.
- Strong balance sheet with over $6 billion in cash.
- Potential share repurchase program to enhance shareholder value.
Challenges Ahead
- Uncertainty in growth rate of new funded accounts affecting variable marketing costs.
- Risk of fraud impacting costs.
- Challenges in managing web-hosting expenses efficiently.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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