Robinhood late Tuesday crushed earnings and revenue estimates for the final quarter of 2023 as stock and crypto trading rebounded. Robinhood stock soared above a buy point Wednesday, but the attempted breakout ran into long-term resistance.
Robinhood Earnings
The online broker swung to earnings of three cents per share from a loss of 19 cents per share a year ago. Revenue of $471 million increased 24% year on year. Ahead of results, analysts were expecting Robinhood to lose one cent per share on revenue of $455 million, FactSet shows.
That marked the investing startup's second profitable quarter since its public debut, though it posted a loss of 61 cents per share for the full year.
Amid higher short-term interest rates, Q4 net interest revenues jumped 41% year-over-year to $236 million, continuing to drive growth, the Robinhood earnings release showed. Net interest revenue more than doubled for the full year, increasing 119%.
As the stock market recovered in the quarter, transaction-based revenue also grew, up 8% year-over-year to $200 million. That was "primarily driven by cryptocurrencies revenue of $43 million, up 10%, equities revenue of $25 million, up 19%, partially offset by options revenue of $121 million, down 2%." Transaction-based revenue fell 11% in Q3 and also fell 4% for the full year, the release showed.
Robinhood said its "trading market share increased" in 2023. But Monthly Active Users (MAU), a closely watched metric, fell 4% in the final quarter of 2023 to 10.9 million.
Robinhood Stock
Shares spiked more than 17% in initial trade on the stock market today, clearing a cup-base buy point at 13.51. But the huge-volume move ran into resistance, just above 13, that has capped the stock's gains since November 2022.
Robinhood stock pared gains to 13.4%, closing below the 13.51 entry.
