Robinhood Q3 Earnings: EPS Beat, Revenue Up 29%, MAUs Fall 16% And More

Robinhood Markets Inc HOOD shares are trading lower in Tuesday's after-hours session following the company's third-quarter financial results. Here's a look at the key metrics from the quarter.

• Q3 Revenue: $467 million missed the estimates of $478.2 million
• Q3 EPS: 9 cent loss beat estimates for a 10 cent loss

Robinhood said total revenues were up 29% year-over-year. Monthly active users decreased 16% to 10.3 million. Average revenue per user increased 27% to $80.

Total assets under custody increased 34% to $87 billion. Net cumulative funded accounts increased by 360,000 year-over-year to 23.3 million. 

Robinhood ended the quarter with $4.9 billion in cash and equivalents versus $6.2 billion in the prior year's quarter. 

"It's been nearly 10 years since we founded Robinhood and we're just getting started. Over the past year, we've put a lot more value in products like Robinhood Gold, including a 4.9% annual yield on cash and a 3% match on IRA contributions," said Vlad Tenev, co-founder and CEO of Robinhood. 

Outlook: Robinhood increased its full-year 2023 operating expense guidance to a range of $2.399 billion to $2.439 billion versus its prior outlook of $2.33 billion to $2.41 billion. Stock-based compensation is expected to be between $860 million and $880 million in 2023. 

"Looking ahead, we remain focused on providing industry-leading products that serve far more of customers' financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better," Tenev said.

Management will discuss these results on a conference call with analysts and investors at 5 p.m. ET.

Check This Out: Robinhood Q3 Earnings: Will Bulls Tout Turnaround On Heels Of X1 Deal?

HOOD Price Action: Robinhood shares were down 6.15% at $9.16 at the time of publication, according to Benzinga Pro.

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