NASDAQ$HOOD

Robinhood Markets Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Robinhood's Q1 2022 results reflected the impact of the macroeconomic environment on its customers, while the company progressed on its long-term plans and product development.

Robinhood's Q1 2022 total net revenues decreased by 43% to $299 million compared to Q1 2021. The net loss was $392 million, or $0.45 per diluted share. Monthly Active Users (MAU) decreased by 10% to 15.9 million, and Average Revenues Per User (ARPU) decreased by 62% to $53.

  • Total net revenues decreased 43% to $299 million compared to Q1 2021.
  • Transaction-based revenues decreased 48% to $218 million compared to Q1 2021.
  • Net loss was $392 million, or $0.45 per diluted share, compared to a net loss of $1.4 billion in Q1 2021.
  • Monthly Active Users (MAU) decreased 10% to 15.9 million for March 2022.

Headline financials

Total Revenue

$299M

Previous: $522M-42.7%
EPS (adj)

-$0.45

Previous: -$6.26+92.8%
ARPU

$53.00

Previous: $137.00-61.3%
Free Cash Flow

-$392M

No prior period
Net Income

-$392M

Previous: -$1.44B+72.9%
Operating Income

-$391M

No prior period
Gross Profit

$299M

Previous: $294M+1.7%
Cash & Equivalents

$6.19B

Previous: $4.8B+29.1%
Total Assets

$18.9B

No prior period
Stock-Based Comp

$220M

Previous: $9M+2344.4%

Revenue & EPS history

Robinhood · Revenue · Quarterly

$299M

Q1 2022-42.7%vs Q1 2021
Beat estimate in 1 of 8 quarters(13%)
ActualEstimate

Revenue by segment

Robinhood · $81M total across 2 segments · Q1 2022

  • Net interest
    $55M
  • Other revenue
    $26M

Forward guidance

Robinhood anticipates recording a restructuring benefit of approximately $7–$19 million in the second quarter of 2022. They expect total operating expenses, excluding share-based compensation, for full year 2022 to increase by approximately 2%–5% year-over-year and share-based compensation to decline by approximately 42%–47% year-over-year.

Tailwinds

  • Tax-advantaged retirement accounts remain on track, with the goal of providing early access to an initial set of customers later this year.
  • The company signed an agreement to acquire Ziglu Limited, which will help accelerate global expansion efforts.
  • Robinhood is focused on long-term investing, spending and savings.
  • Robinhood is helping customers move money faster.
  • Robinhood is opening up its crypto platform to customers internationally.

Headwinds

  • Total operating expenses excluding share-based compensation will further increase by $17-$23 million due to cash restructuring and related charges.
  • GAAP total operating expenses for full year 2022 will further decrease due to a restructuring benefit of approximately $7-$19 million.
  • SBC for full year 2022 will further decrease by $30-$36 million resulting from reversals of previously recognized share-based compensation.
  • The company no longer intends to provide revenue guidance.
  • Actual results might differ materially from our outlook due to several factors, including the rate of growth in net new funded accounts which affects several costs including variable marketing costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.4%

Avg return

Earnings day

-2.8%

Avg return

5 days after

+1.9%

Avg return

30 days after

36%

9 / 25 earnings

Positive

+14.1%

Q4 2024

Best reaction

-16.2%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%-6.7%+14.9%
Q4 2025+0.0%-26.9%-20.8%
Q3 2025-8.8%-7.4%-7.4%
Q2 2025-2.9%-0.6%-2.0%
Q1 2025-5.1%-0.9%+34.7%
Q4 2024+14.1%+2.3%-9.7%
Q3 2024-16.2%-13.2%+33.9%
Q2 2024+3.0%+7.7%+10.1%
Q1 2024-3.8%-6.1%+23.3%
Q4 2023+11.4%-4.1%+50.6%
Q3 2023-12.8%-14.2%+19.7%
Q2 2023-10.3%-11.9%-13.7%
Q1 2023+5.9%-5.0%+3.3%
Q4 2022-4.5%+5.8%-5.2%
Q3 2022+3.4%+0.9%-16.2%
Q2 2022+14.0%+15.0%+6.5%
Q1 2021-10.5%-23.2%-13.6%
Q1 2022+3.1%+6.2%+9.1%
Q4 2019+6.9%+8.4%+14.1%
Q4 2021+2.6%+18.0%-6.4%
Q3 2020-1.7%+4.4%-21.3%
Q3 2021-9.2%-10.4%-28.3%
Q2 2020-4.2%-3.0%-9.2%
Q2 2021-4.2%-3.0%-9.2%
Q4 2020-4.2%-3.0%-9.2%
Q3 2019
Q2 2019
Q1 2019

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