In the fourth quarter, Robinhood earned an impressive $30 million, equivalent to 3 cents per share. This was a stark contrast to the previous year’s loss of $166 million or 19 cents per share. Moreover, the company experienced a substantial 24% revenue growth, reaching $471 million. This increase was mainly driven by an 8% rise in transaction-based revenue, with a primary focus on cryptocurrencies.
Financial analysts surveyed by FactSet initially estimated that Robinhood would report a loss of one penny per share on revenue totaling $455 million. However, the company surpassed these forecasts, resulting in considerable market satisfaction.
Looking to the future, Robinhood provided guidance for its 2024 expense plan. This plan aims to make growth investments in new products, features, and international expansion while simultaneously streamlining and improving existing business operations. The projected range for both GAAP and adjusted operating expenses for the year is between $1.85 billion and $1.95 billion.
The CEO of Robinhood, Vlad Tenev, expressed enthusiasm for the company’s achievements and its promising start in 2024. Tenev highlighted their accelerating product velocity, increased trading market share, and global expansion efforts. Notably, Robinhood has already acquired more funded customers and net deposits in the first half of the first quarter than throughout the entire fourth quarter of the previous year.
Despite a 1.4% decline in Robinhood stock during regular trading hours, it has still shown a commendable 19% increase over the past 12 months, parallel to the performance of the S&P 500 index (SPX) during the same period.
