Shulou(Shulou.com)11/24 Report--

On the morning of February 9, Beijing time, Robinhood, an American Internet brokerage stock trading service, today released its results for the fourth quarter and full year of fiscal 2022.

According to the report, Robinhood's total net revenue in the fourth quarter was $380 million, up 5% from $363 million in the same period last year, while the net loss was $166 million, compared with a net loss of $432 million in the same period last year. The net diluted loss per share attributable to common shareholders was $0.19, compared with a net diluted loss per share attributable to common shareholders of $0.49 in the same period last year.

Separately, Robinhood's board approved a plan to allow the company to buy 55 million shares that Sam Bankman-Fried (Sam Bankman-Fried) bought last year. The former CEO of FTX (now bankrupt), the cryptocurrency exchange, bought the shares through its Emerent Fidelity Technologies company in May 2022.

Robinhood shares rose more than 6 per cent in after-hours trading after the results.

Summary of fourth-quarter results: Robinhood's total net revenue for the quarter ended December 31, 2022 was $380 million, up 5% from $363 million a year earlier, which fell short of wall street analysts' expectations. On average, eight analysts had expected Robinhood's fourth-quarter revenue to reach $397.1 million, according to Yahoo Finance.

By business unit, Robinhood's fourth-quarter transaction-based revenue was $186 million, down 30 per cent from $264 million a year earlier; net interest income was $167 million, up 165 per cent from $63 million a year earlier; and other revenue was $27 million, down 25 per cent from $36 million a year earlier.

Of the transaction-based revenue, Robinhood's revenue from options trading was $124 million in the fourth quarter, unchanged from the previous quarter; revenue from cryptocurrency trading was $39 million, down 24 per cent from the previous quarter; and revenue from stock trading was $21 million, down 32 per cent from the previous quarter.

Robinhood's fourth-quarter net loss was $166 million, compared with a year-on-year net loss of $432 million, down 61% from a year earlier; a diluted net loss per share for common shareholders was $0.19, compared with a net diluted loss per share for common shareholders of $0.49 a year earlier, which fell short of analysts' expectations. On average, eight analysts expected Robinhood to post a diluted net loss of 14 cents a share in the fourth quarter, according to data provided by Yahoo Finance.

Robinhood's fourth-quarter loss before income tax was $168 million, compared with a loss of $420 million in the same period a year earlier, down 60 per cent from a year earlier.

Excluding certain one-time items (not in accordance with GAAP), Robinhood's adjusted EBITDA (net income before interest, tax, depreciation and amortization) was $82 million in the fourth quarter, compared with-$87 million in the same period last year; adjusted EBITDA profit margin was 22%, compared with-24% in the same period last year.

Robinhood's total operating expenses were $534 million in the fourth quarter, down 32% from $783 million in the same period last year. Of this total, brokerage and transaction expenditure was $85 million, up 193% from $29 million in the same period last year; technology and development expenditure was $180 million, down 36% from $282 million in the same period last year; business operating expenditure was $43 million, down 56% from $98 million in the same period last year; marketing expenditure was $2900, down 31% from $4200 in the same period last year General and administrative expenses were $197 million, down 41 per cent from $332 million in the same period last year.

Robinhood's net cumulative capital accounts reached 23 million in the fourth quarter, an increase of about 50, 000 compared to the previous quarter.

Robinhood's monthly active users (MAU) reached 11.4 million in the fourth quarter, a decrease of 800000 compared with the previous quarter, as its customers continued to cope with the volatile market environment.

Robinhood's fiduciary assets (AUC) reached $62 billion in the fourth quarter, down 4% from the previous quarter, mainly due to lower market valuations of growth stocks and cryptocurrency assets, partially offset by continued net deposits.

Robinhood's net deposits were $4.8 billion in the fourth quarter, an annualised growth rate of 30 per cent relative to entrusted assets at the end of the third quarter. Over the past 12 months, Robinhood has net deposits of $18.4 billion, a growth rate of 19%.

Robinhood's average revenue per user (ARPU) was $66 in the fourth quarter, up from $63 in the previous quarter.

Cash and cash equivalents held by Robinhood totaled $6.3 billion at the end of the fourth quarter, compared with $6.2 billion at the end of the third quarter.

Summary of fiscal 2022 results: for the entire fiscal year 2022, Robinhood's total net revenue was $1.358 billion, down 25% from $1.815 billion in fiscal 2023, which fell short of wall street analysts' expectations. On average, 13 analysts had expected Robinhood's full-year revenue to reach $1.37 billion, according to Yahoo Finance.

Robinhood's full-year net loss was $1.028 billion, compared with a net loss of $3.687 billion in fiscal 2021, down 72 per cent from a year earlier. Diluted loss per share attributable to common shareholders was $1.17, compared with a diluted loss per share of $7.49 for common shareholders in fiscal 2021, which also fell short of analysts' expectations. On average, 10 analysts had expected Robinhood to lose $1.12 per share for the full year, according to data provided by Yahoo Finance.

Robinhood's full-year loss before income tax was $1.027 billion, compared with a loss of $3.685 billion in fiscal 2021, a year-on-year reduction of 72 per cent.

Excluding certain one-time items (not in accordance with US GAAP), Robinhood's full-year adjusted EBITDA was-$94 million, compared with $33 million in fiscal year 2021, and adjusted EBITDA profit margins were-7 per cent, compared with 2 per cent in fiscal year 2021.

Robinhood's total operating expenses for fiscal 2022 were $2.369 billion, down 31% from $3.456 billion in fiscal 2021. Of this total, brokerage and transaction expenditure was $179 million, up 13% from $158 million in fiscal year 2021; technology and development expenditure was $878 million, down 29% from $1.234 billion in fiscal year 2021; business operating expenditure was $285 million, down 23% from $368 million in fiscal year 2021; and marketing expenditure was $103 million, down 68% from $325 million in fiscal year 2021 General and administrative expenses were $924 million, down 33 per cent from $1.371 billion in fiscal year 2021.

Performance outlook: Robinhood expects total operating expenses of between $2.375 billion and $2.515 billion in fiscal year 2023, and between $1.42 billion and $1.48 billion excluding equity incentive expenses.

In addition, the company expects to spend between $955 million and $1.035 billion on equity awards in fiscal 2023, including one-time accounting charges related to the cancellation of founder stock awards in the first quarter of 2023 (estimated to be about $485 million). The rest of the 2023 equity award expenditure is expected to be between $470 million and $550 million.

Share price movements: Robinhood shares fell 8 cents, or 0.76%, to close at $10.47 in regular trading on the Nasdaq. Robinhood shares rose 56 cents, or 5.35 percent, to $11.03 in after-hours trading as of 05:39 est (06:39 Beijing time on Friday). In the past 52 weeks, the highest price for Robinhood is $16.49 and the lowest price is $6.81.

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