Robinhood Markets Inc HOOD shares are rising Thursday after the company reported strong first-quarter results and announced 24-hour trading on weekdays.
- Q1 Revenue: $441 million beat estimates of $424.53 million
- Q1 EPS: loss of 57 cents beat estimates for loss of 61 cents
Revenue was up 16% sequentially. Options revenue was up 7% sequentially and crypto revenue was down 1% sequentially. Robinhood said transaction revenues were up 11% year-over-year.
The company added 120,0000 funded accounts, ending the quarter with a total of 23.1 million funded accounts. Average revenue per user reached $77, up from $66 sequentially.
Robinhood ended the quarter with $5.5 billion in cash and equivalents, down from $6.3 billion sequentially.
Related Link: Robinhood Q1 Earnings Highlights: Revenue And EPS Beat, 24-Hour Trading Launch Featuring Select Stocks Such As Tesla
"We're continuing to ship aggressively, increase customer satisfaction, and deliver strong financial performance on the path to GAAP profitability," said Vlad Tenev, co-founder and CEO of Robinhood.
Robinhood said it will launch 24-hour trading next week that will allow customers to trade select stocks 24 hours a day, 5 days a week.
The company now expects operating expenses to be between $2.345 billion and $2.485 billion in full-year 2023.
Following the print, JMP Securities analyst Devin Ryan reiterated Robinhood with a Market Outperform rating and maintained a $25 price target.
HOOD Price Action: Robinhood shares were up 5.4% at $9.56 at the time of publication, per Benzinga Pro.
Photo: courtesy of Robinhood.
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