Robinhood Rockets: Q1 2023 Reveals Stellar Revenue Growth Amidst Crypto Shake-up
According to Robinhood CEO Vlad Tenev, the trading app will continue to achieve strong financial results after the release of its Q1 2023 report.
Robinhood Markets Inc (NASDAQ: HOOD) has published its Q1 2023 earnings report, which revealed a 47% rise in revenue and a 30% decrease in crypto income. Yesterday, the financial services provider announced that its total net revenue in the first quarter grew by 47% compared to the previous year, reaching $441 million.
However, Robinhood also experienced a higher net loss of $511 million during the same period, representing a 30% increase. The California-based stock and crypto trading platform generated $38 million from crypto trading for the period ending on March 31st. However, this amount was lower than the $54 million earned in crypto trading revenues during the first quarter of 2022.
For Q1 2023, Robinhood reported an 11% sequential increase in transaction-based revenues, amounting to $207 million. The dynamic securities trading app also disclosed that equities increased by 29% to $27 million, and options rose by 7% to $133 million.
Robinhood’s net interest revenue climbed by 25% to $208 million due to growth in various segments, including higher interest-earning assets, securities lending activity, and short-term interest rates. However, the company’s significant net loss of $511 million in Q1 resulted in a loss per share of $0.57 compared to an EPS deficit of $0.45 in Q1 2022.
Operating expenses increased by $416 million year-over-year to $950 million, while adjusted EBITDA (non-GAAP) rose by 40% to $115 million.
Furthermore, assets under custody (AUC) increased by 26% to $78 billion. Increased valuations in the stock and crypto asset markets drove Robinhood’s recent AUC growth. AUC also significantly boosted from continued net deposits during the year’s first three months.
Robinhood reported a 120,000 net cumulative funded accounts growth, reaching 23.1 million in the year’s first quarter. Additionally, the company noted a 0.4 million increase in monthly active users (MAUs), bringing the total to 11.8 million.
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Regarding Robinhood’s Q1 2023 performance, co-founder and CEO Vlad Tenev stated:
“We had a successful start to the year in Q1, which demonstrates our ongoing commitment to innovation – and the upcoming launch of 24-Hour Market next week indicates that we are maintaining our pace. We continuously ship new features, enhance customer satisfaction, and achieve strong financial results as we work towards GAAP profitability.”
During an earnings call, Tenev emphasized Robinhood’s mission to cater to a wide range of customers by offering diverse and dynamic products. According to the CEO:
“We see a significant opportunity to provide unique value to customers, and we are actively promoting our services through a new marketing campaign across various channels.”
Robinhood’s CFO, Jason Warnick, also commented on the company’s Q1 2023 performance. Warnick expressed pride in Robinhood’s financial progress over the past year, highlighting four consecutive quarters of revenue growth. Finally, the CFO reiterated Robinhood’s commitment to serving its clients, expanding its business, and delivering shareholder value.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
