Robinhood shares fell 15% in after-hours trading on January 27. The reason was a first-quarter revenue forecast ($340 million) that lagged market expectations ($448.2 million), as well as a decline in active users—from 18.9 million to 17.3 million, CNBC reports.
In the latest metric, the online broker also disappointed the market, which had expected an audience to reach 19.8 million. The number of funded accounts during October–December, however, rose from 22.4 million to 22.7 million.
The company’s total net revenue in the fourth quarter was $363 million, slightly above analysts’ consensus forecast ($362.1 million). The loss per share was $0.49, versus market expectations of $0.45.
The share of crypto trading in total revenue from transactions in October–December declined to 18% from 19.1% and 51.7% in Q3 and Q2 respectively. In absolute terms the figure fell from $51 million to $48 million. In the second quarter, which was favorable for the company, it stood at $233 million.
“Robinhood sees enormous potential in the crypto economy”, according to the press release.
In July 2021, the company’s CEO Vlad Tenev called cryptocurrencies the cornerstone of Robinhood’s future growth.
In 2022 the company plans to add products designed to support long-term investing, spending and saving. Some of them include instant top-ups and withdrawals with debit cards.
During a conference with analysts, CFO Jason Warnick said that by summer Robinhood would roll out tax-advantaged retirement accounts, and later — lending.
Earlier a senior executive explained that to expand the list of cryptocurrencies supported by the platform, the company would like to see clarity on their regulation.
In January, Robinhood launched a beta-testing program for a cryptocurrency wallet for 1,000 selected customers from the waiting list. By March the number of participants will grow to 10,000 users, who had applied previously.
In July 2021 the online broker went public. From peak levels, Robinhood’s stock has plunged 86%, and since the start of 2022 its market capitalization has fallen 34%.
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