NASDAQ$HOOD
Robinhood Markets Inc. · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Robinhood's financial performance for Q4 2022 showed sequential revenue growth and a reduced net loss, driven by net interest revenue, while actively managing costs and focusing on product development.
Robinhood's Q4 2022 results revealed a 5% sequential increase in total net revenues to $380 million. Net loss improved to $166 million, with EPS at -$0.19. Key drivers included a 30% rise in net interest revenue and cost management efforts, despite a decrease in transaction-based revenues. The company is also focusing on future growth opportunities, including a potential share repurchase.
- Total net revenues increased 5% sequentially to $380 million.
- Net loss improved to $166 million, with EPS at -$0.19.
- Net interest revenue rose 30% sequentially to $167 million.
- Adjusted EBITDA was positive $82 million, a 74% sequential improvement.
Headline financials
Revenue & EPS history
Robinhood · Revenue · Quarterly
$380M
Revenue by segment
Robinhood · $194M total across 2 segments · Q4 2022
- Net interest$167M+163.6%86.1%
- Other revenue$27M-23.8%13.9%
Forward guidance
Robinhood anticipates GAAP total operating expenses for full-year 2023 to range from $2.375 billion to $2.515 billion. Total operating expenses prior to share-based compensation are expected to be between $1.420 billion and $1.480 billion, with share-based compensation projected to be in the range of $955 million to $1.035 billion, including a one-time accounting charge of approximately $485 million related to the cancellation of founder share-based compensation in Q1 2023.
Tailwinds
- Cost reduction initiatives are expected to lower operating expenses.
- Share-based compensation is projected to decrease in 2023.
- Focus on product development and customer service improvements.
- Strong balance sheet with over $6 billion in cash.
- Potential share repurchase program to enhance shareholder value.
Headwinds
- Uncertainty in growth rate of new funded accounts affecting variable marketing costs.
- Risk of fraud impacting costs.
- Challenges in managing web-hosting expenses efficiently.
- Difficulty in achieving productivity improvements in customer service.
- Potential for actual results to differ materially from outlook due to various factors.
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 Q4 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
| 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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