Robinhood stock drops after number of users fall, Q1 earnings miss

Apr. 28, 2022 4:17 PM ETRobinhood Markets, Inc. (HOOD)By: Liz Kiesche, SA News Editor23 Comments

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Robinhood Markets (NASDAQ:HOOD) stock is dropping 9.2% in Thursday after-hours trading as the number of its monthly active users fell again, this 8% from Q4 2021. The average amount that each user spent also declined during the quarter. Q1 earnings and revenue both missed the consensus estimate.

"We're seeing our customers affected by the macroeconomic environment, which is reflected in our results this quarter," said Jason Warnick, chief financial officer. "At the same time, we've also made progress on our long-term plans and continue to pursue them aggressively."

The company now expects 2022 total operating expenses, excluding share-based compensation, to rise 2%-5% Y/Y, down from its prior guidance to rise 15%-20%. It expects share-based compensation to drop 42%-47% vs. its prior guidance of down 35%-40%. Earlier this week, CEO Vlad Tenev announced that the fintech would reduce the number of its full-time employees by 9%.

Robinhood (HOOD) also said it expects a Q2 restructuring benefit of $7M-$19M, composed of $17M-$23M of cash restructuring and related charges offset by $30M-$36M from reversals of previously recognized share-based compensation.

Q1 net revenue of $299M vs. the $357M consensus and compares with $363M in Q4 2021 and $522M in Q1 2021.

Monthly active users fell to 15.9M vs. 17.3M at the end of Q4 201. Average revenue per user of $53 fell 18% Q/Q and fell 62% Y/Y.

Crypto transaction-based revenue of $54M vs. $48M in the prior quarter and down from $88M in the year-ago quarter. Options transaction-based revenue was $127M vs. $163M in Q4 2021 and $198M in Q1 2021; equities transaction-based revenue of $36M vs. $52M in the previous quarter and $133M in the year-ago quarter.

Q1 adjusted EBITDA of -$143M vs. -$87M in Q4 2021 and positive $115M in Q1 2021.

Q1 EPS of -$0.45, missed the consensus of -$0.36 and narrowed from -$0.49 in the prior quarter and -$6.26 in the year-ago quarter.

Conference call at 5:00 PM ET.

Earlier, Robinhood Markets (HOOD) GAAP EPS of -$0.45 misses by $0.10, revenue of $299M misses by $58.12M

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