Robinhood released data on its financial performance for the first quarter of 2023 on Wednesday, reporting a 208% drop in net loss, and swallowing a 16% increase in total net revenue. The loss was $511 million for the period, topping the quarterly revenue of $441 million.
During the last quarter of 2022, Robinhood had total net revenue of $380 million with a net loss of $166 million. Compared to the first quarter of 2022, revenue increased by 47% from $299 million. On the contrary, the net loss decreased by 30% from 392 million dollars from the previous period.
In its most recent report, Robinhood said its earnings per share also fell by $345 million, or $0.38 per share, compared to the last quarter of 2022. The online brokerage attributed the loss to a $485 million one-time stock compensation (SBC) basis. related to its founders’ cancellation of the 2021 Listed Market Unit Awards in February.
“Operating expenses increased $416 million sequentially to $950 million, primarily due to the cancellation of the 2021 Founders Award,” Robinhood explained. “Pre-SBC operating expenses decreased 6% sequentially to $352 million.”
However, despite a massive net loss on its record, Robinhood’s quarterly revenue of $441 million beat market expectations with analysts expecting $424.53 million, according to Refinitiv IBES data. The California-based company, which provides platforms for commission-free trading of stocks, exchange-traded funds, and
Digital currencies
Digital currencies
Using cryptography, virtual currencies, commonly known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, and is not supervised by a central authority, so cryptocurrencies operate with a decentralized nature which theoretically makes them immune to government interference. The term cryptocurrency is derived from the origin of the encryption technologies used to secure the network
Using cryptography, virtual currencies, commonly known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, and is not supervised by a central authority, so cryptocurrencies operate with a decentralized nature which theoretically makes them immune to government interference. The term cryptocurrency is derived from the origin of the encryption technologies used to secure the network
Read this termalso reported an 11% increase quarter-over-quarter in transaction-based revenue.
Revenue was $207 million during the first quarter, driven by a 7% increase in options trading and a 29% increase in Stock
Stock
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock, becoming a partial owner of shares in a particular company or fund, however, the shares do not pay a fixed rate of interest and therefore are not considered guaranteed income. As such, stock markets are often associated with risk, as when a company issues bonds, it is taking loans from buyers. When a company offers shares, on the other hand, it sells the percentage
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock, becoming a partial owner of shares in a particular company or fund, however, the shares do not pay a fixed rate of interest and therefore are not considered guaranteed income. As such, stock markets are often associated with risk, as when a company issues bonds, it is taking loans from buyers. When a company offers shares, on the other hand, it sells the percentage
Read this term. Both asset classes generated $133 million and $27 million in transaction-based revenue, respectively. On the contrary, revenue from cryptocurrency shrank by 1% to $38 million.
Moreover, Robinhood reported a 25% quarter-over-quarter increase in net interest income, as the US financial services company’s return on its loans to clients, such as buying securities, was $208 million. Revenue topped $167 million in the prior quarter and $55 million in the prior year, buoyed by the U.S. Federal Reserve’s rapid interest rate hike.
Launch of Robinhood Eyes UK, to open a 24-hour market
Meanwhile, Robinhood indicated in the report that it will launch a 24-hour market next week to enable its clients to trade single stocks all day for five days a week.
said Vlad Tenev, CEO and Co-Founder of Robinhood Markets.
In another development, Robinhood in February halted its planned acquisition of Ziglu, a cryptocurrency portfolio investment platform, after first announcing the plan in April last year in a bid to re-enter the UK. The company, when providing an update on this matter in its latest financial report, said it was about to sail to the UK.
“With an experienced team and existing leadership, we believe we are on track to achieve our ambitious target of launching brokerage services in the UK by the end of the year,” Robinhood explained.
Special News Nuggets: FMAS 23 Highlights; Read snippets of today’s news.
Robinhood released data on its financial performance for the first quarter of 2023 on Wednesday, reporting a 208% drop in net loss, and swallowing a 16% increase in total net revenue. The loss was $511 million for the period, topping the quarterly revenue of $441 million.
During the last quarter of 2022, Robinhood had total net revenue of $380 million with a net loss of $166 million. Compared to the first quarter of 2022, revenue increased by 47% from $299 million. On the contrary, the net loss decreased by 30% from 392 million dollars from the previous period.
In its most recent report, Robinhood said its earnings per share also fell by $345 million, or $0.38 per share, compared to the last quarter of 2022. The online brokerage attributed the loss to a $485 million one-time stock compensation (SBC) basis. related to its founders’ cancellation of the 2021 Listed Market Unit Awards in February.
“Operating expenses increased $416 million sequentially to $950 million, primarily due to the cancellation of the 2021 Founders Award,” Robinhood explained. “Pre-SBC operating expenses decreased 6% sequentially to $352 million.”
However, despite a massive net loss on its record, Robinhood’s quarterly revenue of $441 million beat market expectations with analysts expecting $424.53 million, according to Refinitiv IBES data. The California-based company, which provides platforms for commission-free trading of stocks, exchange-traded funds, and
Digital currencies
Digital currencies
Using cryptography, virtual currencies, commonly known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, and is not supervised by a central authority, so cryptocurrencies operate with a decentralized nature which theoretically makes them immune to government interference. The term cryptocurrency is derived from the origin of the encryption technologies used to secure the network
Using cryptography, virtual currencies, commonly known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, and is not supervised by a central authority, so cryptocurrencies operate with a decentralized nature which theoretically makes them immune to government interference. The term cryptocurrency is derived from the origin of the encryption technologies used to secure the network
Read this termalso reported an 11% increase quarter-over-quarter in transaction-based revenue.
Revenue was $207 million during the first quarter, driven by a 7% increase in options trading and a 29% increase in Stock
Stock
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock, becoming a partial owner of shares in a particular company or fund, however, the shares do not pay a fixed rate of interest and therefore are not considered guaranteed income. As such, stock markets are often associated with risk, as when a company issues bonds, it is taking loans from buyers. When a company offers shares, on the other hand, it sells the percentage
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock, becoming a partial owner of shares in a particular company or fund, however, the shares do not pay a fixed rate of interest and therefore are not considered guaranteed income. As such, stock markets are often associated with risk, as when a company issues bonds, it is taking loans from buyers. When a company offers shares, on the other hand, it sells the percentage
Read this term. Both asset classes generated $133 million and $27 million in transaction-based revenue, respectively. On the contrary, revenue from cryptocurrency shrank by 1% to $38 million.
Moreover, Robinhood reported a 25% quarter-over-quarter increase in net interest income, as the US financial services company’s return on its loans to clients, such as buying securities, was $208 million. Revenue topped $167 million in the prior quarter and $55 million in the prior year, buoyed by the U.S. Federal Reserve’s rapid interest rate hike.
Launch of Robinhood Eyes UK, to open a 24-hour market
Meanwhile, Robinhood indicated in the report that it will launch a 24-hour market next week to enable its clients to trade single stocks all day for five days a week.
said Vlad Tenev, CEO and Co-Founder of Robinhood Markets.
In another development, Robinhood in February halted its planned acquisition of Ziglu, a cryptocurrency portfolio investment platform, after first announcing the plan in April last year in a bid to re-enter the UK. The company, when providing an update on this matter in its latest financial report, said it was about to sail to the UK.
“With an experienced team and existing leadership, we believe we are on track to achieve our ambitious target of launching brokerage services in the UK by the end of the year,” Robinhood explained.
Special News Nuggets: FMAS 23 Highlights; Read snippets of today’s news.