Published , by Donovan Erskine
Published , by Donovan Erskine
Robinhood (HOOD), the company behind the notorious stock-trading app, has shared its own earnings report, giving us a better idea of how it performed financially over the past few months, as well as how those numbers compare to previous quarters. Although Robinhood beat earnings and revenue expectations for the quarter, it’s not all good news for the financial company.
Robinhood’s Q2 2023 earnings report was shared after markets closed today. It shows that the company scored $486 million in revenue, comfortably beating the $474 million expectation. The company also cleared its expected loss of $0.01 per-share by pulling in a profit of $0.03 per share.
“In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company,” said Vlad Tenev, CEO and Co-Founder of Robinhood Markets. “Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better."
Despite beating expectations, Robinhood (HOOD) stock has dropped dramatically in after-hours trading, hitting as low as $11.57 after ending the day at $12.44. This could likely be attributed to the fact that Robinhood’s monthly active users was down by 1 million. The company also reported that its Assets Under Custody increased 13 percent sequentially to $89 million. It’s also worth noting that Robinhood reported $4.1 billion in net bookings, signaling a 21 percent growth rate.
While it may have been a financially successful quarter for Robinhood (HOOD), its MAU figure will certainly raise questions about the company’s long-term sustainability. For more of the financial news hitting this week, stay with us here on Shacknews.