Robinhood Q4 Earnings Highlights: Lower MAU And Crypto Revenue, Updates on Crypto Wallets And Plans To Extend Trading Hours

Financial services company Robinhood Markets HOOD reported fourth quarter and full fiscal 2021 results after the market close Thursday. Here are the highlights.

What Happened: Robinhood reported fourth-quarter revenue of $363 million, up 14% year-over-year. The total came in ahead of a Street consensus estimate of $362.1 million, as reported by Benzinga Pro.

Full year revenue for the company was up 89% year-over-year to $1.8 billion.

Robinhood reported transaction-based revenue of $264 million in the fourth quarter, up 12% year-over-year. Transaction revenue was up 95% year-over-year for the full fiscal year at $1.4 billion.

Cryptocurrency revenue was $48 million in the fourth quarter, up 304% year-over-year but down from cryptocurrency revenue of $51 million in the third quarter. Full-year cryptocurrency revenue for Robinhood was $419 million, compared to $27 million in the previous fiscal year.

Equity revenue fell 35% year-over-year to $52 million in the fourth quarter.

Robinhood ended the fourth quarter with 22.7 million funded accounts and 17.3 million monthly active users. Net funded accounts increased 1% quarter-over-quarter. Monthly active users fell 8% from the third quarter.

The company reported an average revenue per user of $64 in the fourth quarter, down 39% year-over-year. The decline came from lower trading volume for options and equities for users.

“We had a momentous year, nearly doubling the number of customers on the platform and making critical investments in our team and infrastructure to support growth,” Robinhood CEO and co-founder Vlad Tenev said.

Related Link: What To Watch For When Robinhood Reports Q4 Results 

What’s Next: Robinhood highlighted the launch of automated customer account transfer services, which will be rolled out in the first quarter of fiscal 2022.

The company said it is working on delivering a larger window of available trading hours and plans to roll out new hours in the first quarter of 2022.

“This will be one of several improvement the company plans to make to the trading experience this year,” the company said.

Crypto Wallets are in alpha testing and will soon launch to public beta with a full launch coming in the first quarter of fiscal 2022, according to Robinhood. 

The company’s crypto platform is expected to launch for international customers in 2022.

“The company believes in the immense potential of the crypto economy and sees a big opportunity in serving customers across the globe.”

Guidance for the first quarter is revenue of $340 million. The total comes in lower than a current estimate of $448.2 million from analysts, according to Benzinga Pro.

HOOD Price Action: HOOD shares are down 10.94% to $10.34 in after hours trading Thursday and hit new 52-week lows.

Photo courtesy of Robinhood. 

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Posted In: CryptocurrencyEarningsNewsTop StoriesMarketsMoversTrading Ideascrypto walletsRobinhoodStock BrokersVlad Tenev
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