NASDAQ$HOOD
Robinhood Markets Inc. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Reported a sequential revenue increase driven by net interest revenue and growth in interest-earning assets, while also experiencing a net loss impacted by a one-time share-based compensation expense.
Robinhood's Q1 2023 results showed sequential growth in total net revenues, driven by net interest revenue and transaction-based revenues. The company experienced a net loss, which included a significant impact from a one-time share-based compensation expense. However, adjusted EBITDA increased, and key metrics like net cumulative funded accounts, monthly active users, and assets under custody also saw positive growth.
- Total net revenues increased 16% sequentially to $441 million.
- Net interest revenue increased 25% sequentially to $208 million.
- Net loss was $511 million, or EPS of -$0.57, impacted by a one-time share-based compensation expense.
- Adjusted EBITDA (non-GAAP) increased 40% sequentially to $115 million.
Headline financials
Revenue & EPS history
Robinhood · Revenue · Quarterly
$441M
Revenue by segment
Robinhood · $208M total across 1 segment · Q1 2023
- Net interest$208M+278.2%100.0%
Forward guidance
Robinhood anticipates GAAP total operating expenses for full-year 2023 to be in the range of $2.345 billion to $2.485 billion. Total operating expenses prior to SBC for full-year 2023 are expected to be in the range of $1.42 billion to $1.48 billion. SBC for full-year 2023, including the 2021 Founders Award Cancellation, is expected to be in the range of $925 million to $1.005 billion.
Tailwinds
- Improved expense outlook for 2023.
- Full-year 2023 GAAP total operating expenses expected to be in the range of $2.345 billion to $2.485 billion.
- Full-year 2023 total operating expenses prior to SBC expected to be in the range of $1.42 billion to $1.48 billion.
- Full-year 2023 SBC, including the 2021 Founders Award Cancellation, expected to be in the range of $925 million to $1.005 billion.
- Expense outlook improved based on Q1 2023 results.
Headwinds
- Actual results might differ materially from the outlook due to several factors.
- Rate of growth in net new funded accounts affects several costs including variable marketing costs.
- Success in preventing fraud can impact the expense outlook.
- Ability to manage web-hosting expenses efficiently is a factor.
- Ability to achieve productivity improvements in customer service is a consideration.
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 2023
-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
| Quarter | Report date | Reaction (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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