Robinhood Q4 Earnings Highlights: Revenue Beat, EPS Beat, Strong Start To Q1 And More

Financial services company Robinhood Markets HOOD reported fourth-quarter financial results after the market close Tuesday.

Here are the key highlights.

What Happened: Robinhood reported fourth-quarter revenue of $471 million, which was up 24% year-over-year. The revenue beat a Street consensus estimate of $456.8 million, according to data from Benzinga Pro.

Robinhood reported earnings per share of 3 cents, which beat a Street consensus estimate of a loss of 1 cent per share.

The company said the revenue increase came from increased transaction-based revenues and higher net interest. Net interest revenue was up 41% year-over-year to $236 million. Transaction revenue was up 8% year-over-year to $200 million.

Robinhood said cryptocurrency revenue was $43 million, up 10% year-over-year in the fourth quarter. Crypto revenue was higher than equities revenue of $25 million, up 19% year-over-year. Options revenue of $121 million was down 2% year-over-year.

The company ended the fourth quarter with 23.4 million funded customers, a year-over-year increase of 420,000.

Assets under custody stood at $102.6 billion at the end of the fourth quarter, which was up 65% year-over-year. Net deposits were $4.6 billion, up 21% from the third quarter. The company ended the fourth quarter with 1.42 million gold subscribers, up 25% year-over-year. Monthly active users totaled 10.9 million in the fourth quarter, down 4% year-over-year.

The average revenue per user was $81 in the fourth quarter, up 23% year-over-year.

Robinhood’s full fiscal 2023 revenue totaled $1.87 billion for Robinhood, a 37% year-over-year increase. The company posted a loss of 61 cents per share, which was an improvement over a loss of $1.17 per share in the prior year.

"2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally," Robinhood CEO Vlad Tenev said.

What's Next: The company will provide more financial guidance and commentary on its fourth-quarter earnings call.

The company said it expects adjusted operating expenses and SBC to be in a range of $1.85 billion to $1.95 billion for fiscal 2024.

The company's growth areas include new products, features and international expansion.

"We're off to an even better start in 2024, as we've already brought in more Funded Customers and Net Deposits through the first half of Q1 than we did in all of Q4 2023," Tenev said.

Chief Financial Officer Jason Warnick highlighted Robinhood’s full-year revenue and higher margins in fiscal 2023 and goals for 2024.

"In 2024, we aim to continue delivering profitable growth as we work to maximize earnings per share over time to drive long-term shareholder value,” Warnick said.

HOOD Price Action: Robinhood shares are up 116% to $13.22 in after-hours trading Tuesday versus a 52-week trading range of $7.91 to $13.51.