What To Watch For When Robinhood Reports Q4 Results After The Bell

Robinhood Markets Inc HOOD is set to announce its fourth-quarter financial results after the closing bell in what will be the company's second earnings report since its IPO in July. 

The stock has significantly underperformed the overall market since making its public debut. Robinhood shares initially soared well above its IPO price of $38, but disappointing quarterly results set the stock on a downward trajectory from which it has yet to recover. 

Ahead of its IPO, Robinhood CEO Vlad Tenev told potential investors that they could expect to see Robinhood diversify its business and revenue streams over time.

That is something that analysts will be focusing on tonight. 

During the company's third-quarter earnings call, Robinhood said this was the first time more new customers made their first trade in crypto instead of stocks. Executives also attributed more than 60% of cryptocurrency trading volumes to Dogecoin DOGE/USD.

See Also: Dogecoin Crashes Over 16% Today; Top Crypto Youtuber Says Robinhood Wallet May Turn Things Around

Robinhood reported transaction-based revenue of $267 million, cryptocurrency revenue of $51 million and equity transaction revenue of $50 million.

The company said it expects fourth-quarter revenue of $325 million.

Analysts will also be paying attention to monthly active users and new funded accounts. The company reported 18.9 million MAUs in the third-quarter and ended the quarter with 22.4 million funded accounts. Robinhood guided for around 660,000 new funded accounts in the fourth quarter. 

If Robinhood is able to show expanding revenue streams or better-than-expected client growth, its beaten-down stock could see more investor interest. 

HOOD Price Action: Robinhood has traded as low as $11.15 and as high as $85 since listing on the Nasdaq last year.

The stock was down 6.48% at $11.61Thursday afternoon.

Photo: Ibai from Flickr.