Robinhood Q2 Earnings Highlights: Revenue Beat, Brokerage Reaches Profitability, Revenue Per User Rises And More
Portfolio Pulse from Chris Katje
Robinhood Markets Inc (NASDAQ:HOOD) reported Q2 revenue of $486 million, up 53% YoY and 10% QoQ, beating the Street estimate of $475 million. The company reported transaction revenue of $193 million, down 7% QoQ. Cryptocurrency related revenue was down 18% QoQ to $31 million. Equity related revenue was $25 million, down 7% YoY. Net interest revenue was up 13% YoY to $234 million. The company reported 23.2 million funded accounts, up by around 70,000 sequentially. Monthly active users were 10.8 million for the second quarter, down by around 1 million accounts. The company ended the quarter with $89 billion assets under custody, down 13% QoQ. The company reported a profitable Q2 with earnings per share of 3 cents, beating a Street estimate of a loss of 2 cents per share.
August 04, 2023 | 12:13 pm
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Robinhood reported a profitable Q2 with higher than expected revenues. However, transaction, cryptocurrency, and equity revenues were down. The number of active users and assets under custody also decreased.
While Robinhood reported higher than expected revenues and profitability, the decrease in transaction, cryptocurrency, and equity revenues, as well as the decrease in active users and assets under custody, could potentially offset the positive impact of the earnings beat. This mixed result makes the short term impact on the stock price uncertain.
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IMPORTANCE 80
RELEVANCE 100