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Robinhood (HOOD) hits all-time low on awful Q1 2022 results

Vlad Tenev's vision of revolutionizing brokerages may be falling flat, as Robinhood reported terrible Q1 2022 results.

Asif Khan

April 28, 2022 2:30 PM

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Robinhood has not had a good time as a publicly traded stock, and today the company's shares hit another all-time low on what can only be described as terrible Q1 2022 financial results.

Robinhood (HOOD) Q1 2022 revenues came in at $299 million, missing estimates of $355.78 million. The company also reported a loss of $0.45/share which was below Wall Street's consensus estimate of $0.31/share. But the terrible news didn't stop there. Transaction-based revenues fell 48% from the prior year.

• Options decreased 36% to $127 million, compared with $198 million in the first quarter of 2021.
• Cryptocurrencies decreased 39% to $54 million, compared to $88 million in the first quarter of 2021.
• Equities decreased 73% to $36 million, compared with $133 million in the first quarter of 2021.
• Monthly Active Users (MAUs) decreased 10% to 15.9 million compared to 17.7 million at the end of March 2021
• Average Revenues Per User (ARPU) collapse 62% from Q1 2021.

Robinhood's Q1 2022 loss came in exactly at the whisper number prediction, but these numbers are bad. Making matters worse, the stock is now down over 75% from its IPO price last year. But wait, there's more! HOOD shareholders have witnessed 89% of the stock's value be erased since it hit an all-time high of $85/share in August 2021.

We all know that Robinhood is a terrible company that became known for its horrible risk management and treatment of clients when the firm had to shut off the buy button on GameStop in January of 2021. The last year has been a tough slog for the company, and just earlier this week it was announced that 9% of their workforce would be let go. While it is sad for people to lose their jobs, many investors are delighted to see Robinhood on the brink of complete failure. The company attempted to revolutionize investing with offerings like no commissions on trades and fractional share ownership, but it appears their business model has yet to turn a consistent profit. With a ton of competition from Wall Street brokers, and an overall sense of hatred for the brand from retail investors, it remains to be seen how much longer this clown show will last.

Couldn't have happened to a nicer company. Am I right?

This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.