Earnings Results: Robinhood puts up a surprise profit, but shares fall

by | Aug 2, 2023 | Stock Market

Robinhood Markets Inc. on Wednesday reported second-quarter earnings that beat expectations despite a drop in transaction sales and monthly active users, but management at the stock-trading app said the company expect to spend a bit less this year. Shares fell 3.4% after hours on Wednesday.

The online trading company reported second-quarter net income of $25 million, or 3 cents a share, contrasting with a loss of $295 million, or 34 cents a share, in the same quarter last year. Revenue rose to $486 million, compared with $318 million in the prior-year quarter. Analysts polled by FactSet expected Robinhood
HOOD,
-3.34%
to report an adjusted loss of 1 cent a share, on revenue of $473 million. Robinhood also reported a drop from the prior quarter in transaction revenues and monthly active users: Transaction-based revenues fell from the prior quarter for options, crypto and stocks, while monthly active users fell by 1 million from the prior quarter, to 10.8┬ámillion. Still, the company said it expects total operating expenses for the full year to be between $2.33 billion and $2.41 billion, with the midpoint of that range a bit better than earlier expectations for $2 …

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