(Robinhood) Robinhood fell more than 13% in premarket trading on Friday after the company reported a $423 million loss in the fourth quarter of 2021,
The loss was a decline from a net income of $13 million in the prior year and exceeded analysts’ expectations of a net loss of $225 million. FY21 loss was $3.69 billion, down from a net income of $7 million in the prior year.
The fourth-quarter revenues were posted at $363 million, up by 14% from the prior year. FY21 revenue was $1.82 billion, up by 89% from the prior year.
The company, which rode on trading momentum in early 2021, said its stock trading revenue declined by 35% to $52 million in the fourth quarter. Options trading revenue improved by 14% to $163 million.
Robinhood announced that its monthly active users rose by 48% to 17.3 million for December 2021, up from 11.7 million in the comparable period of 2020. The average revenue per user declined 39% to $64.
The brokerage firm now expects revenue in the first quarter of 2022 to be less than $340 million, reflecting a 35% decline from the first quarter of 2021.
HOOD: NASDAQ is down -13.09% on premarket.
