Robinhood Stock Drops After Q3 Revenue Miss: Details

Robinhood Markets Inc HOOD reported its third-quarter results after Wednesday's closing bell. Here's a look at the key figures from the report.

The Details: Robinhood Markets reported quarterly earnings of 17 cents per share, which met the analyst consensus estimate. Quarterly revenue came in at $637 million, which missed the analyst consensus estimate of $650.67 million and is a 36.4% increase over sales of $467 million from the same period last year.

• Funded Customers increased by 1 million year-over-year to 24.3 million.
• Investment Accounts increased by 1.5 million year-over-year to 25.1 million.
• Assets Under Custody (AUC) increased 76% year-over-year to $152.2 billion, driven by continued Net Deposits and higher equity and cryptocurrency valuations.
• Net Deposits were $10 billion, an annualized growth rate of 29% relative to AUC at the end of the quarter. Over the past 12 months, Net Deposits were $39 billion, a growth rate of 45% relative to AUC at the end of the third quarter.
• Average Revenue Per User (ARPU) increased by 31% year-over-year to $105.
• Gold Subscribers increased by 860,000, or 65%, year-over-year to 2.2 million.

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“I’m really proud of our Q3 results and how smoothly our product engine is humming,” said Vlad Tenev, CEO and co-founder of Robinhood.

“In the past month, we introduced Robinhood Legend, our new desktop offering, and announced index options, futures, and a realized profit and loss tool are coming soon. And just this week, we launched our Presidential Election Market. We have a ton of momentum, and we’re just getting started,” Tenev added.

HOOD Price Action: According to Benzinga Pro, Robinhood shares are down 10.84% after-hours at $25.15 at the time of publication Wednesday.

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