robin hood (HOOD) Late Tuesday, earnings and revenue expectations for the final quarter of 2023 were dashed as demand for stocks and crypto trading recovered. Robinhood stock soared in late trading.
Robinhood Revenue, Robinhood Stock
The online brokerage turned a profit of 3 cents per share from a loss of 19 cents per share a year ago. Revenues increased 24% year over year to $471 million. Prior to the earnings release, analysts had expected Robinhood to report a loss of 1 cent per share on revenue of $455 million, according to FactSet.
This was the investment startup's second most profitable quarter since going public, but it posted a full-year loss of 61 cents per share.
Robinhood's net interest income increased 41% year-over-year to $236 million in the fourth quarter due to higher short-term interest rates, continuing to drive growth, according to Robinhood's earnings release. Net interest income more than doubled for the full year, increasing 119%.
As the stock market recovered during the quarter, transaction-based revenue also increased, increasing 8% year-over-year to $200 million. This was driven primarily by crypto revenue of $43 million, up 10%, equity revenue of $25 million, up 19%, and partially driven by options revenue of $121 million, down 2%. offset by.” Transaction-based revenue fell 11% in the third quarter and 4% for the full year, according to the release.
Robinhood said its “trading market share increased” in 2023. However, monthly active users (MAU), a closely watched metric, fell by 4% to 10.9 million in the final quarter of 2023.
Shares soared 14.8% to $13.60 in late trading Tuesday, but have since pared their gains to 7.6%. Robinhood shares fell 1.4% in regular stock market trading on the day.
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