The financial services provider Robinhood Markets Inc witnessed its revenue from crypto trading fall by 24% during the Q4 of 2022, compared to the $51 million reported during the third quarter.
Notably, the revenue generated from crypto trading during the third quarter was also a 12% decrease from the $58 million reported during the second quarter.
Robinhood reported (1) revenue of $39 million from crypto currency transactions in the fourth quarter of 2022, which was below the forecasts provided by industry analysts.
In addition to the decrease, the corporation announced a net loss of $166 million, and profits per share came in at a negative $0.19. Meanwhile, an estimate by FactSet that experts gathered put the anticipated net loss at $131 million.
Robinhood in Q4 2022
In addition, Robinhood said in a press statement that its shares saw a decline of 32% to $21 million during the fourth quarter of 2022. Concurrently, the number of monthly active users (MAU) experienced a decline of 0.8 million as a result of the turbulent market.
The business also disclosed that its assets under custody (AUC) fell by 4% to $62 billion. The fall in AUC was caused by the loss in valuations on the crypto market and stock price reductions.
The entire year's results show that Robinhood had a net loss of $1.03 billion, equivalent to a loss of $1.17 per share.
Vlad Tenev, co-founder of the firm and current CEO, praised the team for their work over the previous year. He proceeded by saying:
We are now beginning to see real momentum on a number of the products we released, which gives us confidence that they can grow into important business lines over time.
In the prior quarter, according to Jason Warnick, Chief Financial Officer of Robinhood, the company committed to catering to clients, developing the business, and achieving "long-term shareholder value."
He said that the Board of Directors had permitted the firm to buy back the majority or all of the shares acquired by a holding company owned by a former boss of FTX, Sam Bankman-Fried.
The financial services corporation brags about having more than $6 billion in cash, which may be invested or used to pursue potential future possibilities.
Despite this, Robinhood stated in the statement made for the fourth quarter of 2022 that there is no guarantee that the share buyback plans would be successful.
Because "there is minimal precedence for this sort of issue," the firm has stated that it cannot foresee whether or not the transaction would go through.
Robinhood anticipates that its overall operational expenditures for the year would range between $2.375 billion and $2.515 billion. This is according to the company's projection for the year's finances.
In extended trading, the price of Robinhood stock was trading at $10.5.
Since the beginning of the year, the firm's shares have climbed by 28.62%, and more recently, they have increased by approximately 13% in the past three months. HOOD has had a gain of 15.82% over the last month.