Robinhood stock dips 11% on softer-than-expected Q1 revenue guidance

Jan. 27, 2022 4:17 PM ETRobinhood Markets, Inc. (HOOD)By: Liz Kiesche, SA News Editor35 Comments

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Robinhood Markets (NASDAQ:HOOD) stock slides 11% in after-hours trading after the stock and crypto trading app company says it expects Q1 revenue will be less than $340M vs. consensus of $438.7M.

The forecast assumes "some incremental improvement in trading volumes versus what we have seen so far." The company also points out that the Q1 revenue outlook at its top end implies a 35% Y/Y decline from Q1 2021, when it saw "outsized revenue performance due to heightened trading activity, particularly relating to certain meme-stocks."

For the full year 2022, Robinhood (HOOD) expects total operating expenses, excluding share-based compensation to rise 15%-20% Y/Y; meanwhile, it expects share-based compensation to fall 35%-40% from a year ago.

Q4 net revenue of $363M trails the $377.7M consensus and compares with $365M in Q3 2021 and $318M in Q4 2020.

Crypto transaction-based revenue of $48M falls from $51M in Q3. Options transaction-based revenue was $163M vs. $164M in Q3; equities transaction-based revenue of $52M vs. $50M in the prior quarter.

Q4 adjusted EBITDA of -$87M vs. -$84M in Q3 and positive $79M in Q4 2020.

Monthly active users of 17.3M slips 8% from 18.9M at the end of Q3.

Q4 net loss of $423M, or -$0.49 per share, compares with consensus of -$0.30 and narrows from -$2.06 in Q3 and swung from net income of $13M, or $0.02 per share, in Q4 2020.

Conference call at 5:00 PM ET.

Earlier, Robinhood Markets (HOOD) GAAP EPS of -$0.49 misses by $0.05, revenue of $363M misses by $3.64M

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