Loading...
•
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.
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 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.
- Difficulty in achieving productivity improvements in customer service.
- Potential for actual results to differ materially from outlook due to various factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income