Robinhood Reports Q1 2023 Figures, Sees Revenue Surge 47% with Higher Net Loss of 30%

Robinhood Markets Inc (NASDAQ: HOOD) has posted its Q1 2023 earnings report, which showed a 47% increase in revenue alongside a 30% drop in crypto income. Yesterday, the financial services facilitator reported that total net revenue in the first quarter surged 47% year-over-year (YoY) to $441 million. However, Robinhood also sustained a 30% higher net loss of $511 million during the same period. The California-based stock and crypto trading platform realized $38 million from crypto trading for the period ended March 31st. However, this figure was way off the $54 million that Robinhood earned in crypto trading revenues over the first quarter of 2022.

For Q1 2023, Robinhood reported a sequential 11% increase in transaction-based revenues to $207 million. Furthermore, the dynamic securities trading app revealed that equities increased 29% to $27 million, and options jumped 7% to $133 million.

Robinhood’s net interest revenue climbed 25% to $208 million on growth in various segments. These include higher interest-earning assets, securities lending activity, and short-term interest rates. However, the company’s substantial $511 million net loss for Q1 resulted in losses per share of $0.57 compared to an EPS deficit of $0.45 in Q1 2022.

Operating expenses increased $416 million YoY to $950 million, while adjusted EBITDA (non-GAAP) climbed 40% to $115 million.

In addition, assets under custody (AUC) increased 26% to $78 billion. Robinhood’s latest AUC growth was propelled by increased growth in stock and crypto asset market valuations. Furthermore, AUC received a massive boost from continued net deposits during the first three months of the year.

Robinhood said its net cumulative funded accounts grew by 120,000 to 23.1 million for the first quarter of the year. Furthermore, the company also reported a 0.4 million increase in monthly active users (MAUs) to 11.8 million.

Robinhood Execs Comment on Q1 2023 Performance

Weighing in on Robinhood’s quarterly performance, co-founder and chief executive officer Vlad Tenev explained:

“We had a great start to the year in Q1, which [underscores] our relentless pursuit of innovation – and the launch of 24-Hour Market next week shows we’re not slowing down. We’re continuing to ship aggressively, increase customer satisfaction, and deliver strong financial performance on the path to GAAP profitability.”

In an earnings call, Tenev emphasized Robinhood’s overarching agenda to appeal to a broad spectrum of customers with diverse and dynamic offerings. As the CEO put it:

“We see a big opportunity here to provide differentiated value to customers, and we’re working hard to get the word out even more, including by launching a new marketing campaign across multiple channels.”

Robinhood chief financial officer Jason Warnick also touched on the company’s latest quarterly performance. Warnick expressed pride in Robinhood’s year-long financial journey while emphasizing that the company grew revenue four quarters in a row. Lastly, the CFO added that Robinhood remained committed to serving its client base, expanding its business, and increasing shareholder value.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.