Financial services company Robinhood Markets (NASDAQ: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.
Related Link: Trading Strategies For Robinhood Stock Before And After Q4 Earnings
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…
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