Robinhood Q1 Earnings Highlights: EPS And Revenue Miss, Monthly Active Users Fall, Company Remains Optimistic Of New Features

Robinhood Markets HOOD reported first-quarter financial results after market close Thursday. Here are the key highlights for investors.

What Happened: Robinhood reported first-quarter revenue of $299 million, down 43% year-over-year. The total missed a consensus estimate of $355.8 million according to Benzinga Pro; Company guidance for the first quarter was $340 million.

Transaction revenue was $218 million in the quarter, down 48% year-over-year. Options revenue of $54 million was down 36% year-over-year. Cryptocurrency revenue declined 39% to $54 million in the quarter.

Robinhood reported a net loss of 45 cents per share in the first quarter, missing a consensus estimate of a loss of 36 cents per share.

The company ended the quarter with 22.8 million funded accounts, up 27% year-over-year. The company had 22.7 million funded accounts at the end of the fourth quarter, marking a slight sequential gain.

Robinhood had 15.9 million monthly active users, down 10% year-over-year. Monthly active users were down 8% from the fourth quarter.

The company had $93.1 billion in assets under custody at the end of the first quarter, up 15% year-over-year.

Average revenue per user was $53 in the first quarter, down 62% year-over-year and down 18% from the fourth quarter.

“We’re seeing our customers affected by the macroeconomic environment, which is reflected in our results this quarter,” said CFO Jason Warnick.

Related Link: Robinhood Trims 9% Of Its Workforce

What’s Next: Robinhood recently extended its trading hours to a new range of 7 a.m. ET to 8 p.m. ET.

The company also rolled out its crypto wallets to over 2 million customers on its waitlist in April and added several new cryptocurrencies to its platform recently including Shiba Inu SHIB/USD.

“This quarter saw our product development engine gain velocity with the rollout of some of our most requested features and capabilities,” said CEO Vlad Tenev.

Robinhood will begin announcing several operational figures on a monthly basis beginning with an April report launched in mid-May. The company will no longer provide revenue guidance going forward.

HOOD Price Action: Robinhood shares are down 12% to $8.91 in after-hours trading.