Robinhood HOOD Q1 2022 Results

Vlad Tenev, CEO and co-founder of Robinhood Markets, Inc., attends his company’s IPO at the Nasdaq Market venue in Times Square in New York, U.S., July 29, 2021.

Brendan McDermid | Reuters

Retail brokerage Robinhood released its first-quarter results on Thursday, showing a bigger-than-expected loss and lower revenue.

Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Losses per share: 45 cents vs. 36 cents expected
  • Revenue: $299 million vs $355.8 million forecast

Robinhood also reported that its monthly active users fell to 15.9 million, from 17.7 million a year ago and 17.3 million in the prior quarter. The company’s average revenue per user was $53, compared to $137 a year earlier and $64 in the prior quarter.

Shares of the company were down more than 8% after hours trading. The stock is trading at historic lows.

Robinhood faced tough comparisons in the first quarter. A year ago, GameStop’s trading and other so-called meme stocks were robust, which helped fuel its rapid growth.

Net sales decreased 43% year over year. The net loss was $392 million, which was lower than the loss of $1.4 billion in the first quarter of 2021.

In an effort to boost revenue, Robinhood rolled out new products and features. The company announced in late March that it had extended its trading hours.

Robinhood also monitors its costs. On Tuesday, Robinhood announced it would cut its full-time workforce by around 9%, citing “duplicate roles and functions” for the layoffs.

This was the second consecutive quarter of declining users. In the fourth quarter, Robinhood’s monthly active users fell to 17.3 million, down from the third quarter, while net cumulative funded accounts increased 1% to 22.7 million.

In the first quarter, the combined net consolidated accounts reached 22.8 million.

Robinhood went public in July 2021 at $38 per share, but the stock has struggled to find traction. It was trading just above $10 per share on Thursday.

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