Press release
Robinhood Reports Fourth Quarter and Full Year 2022 Results
Robinhood Co-Founders cancel nearly $500M of their share-based compensationBoard of Directors authorizes Robinhood to pursue purchasing its shares
About this update from Robinhood Markets, Inc.
[{"type":"text","content":"Robinhood Co-Founders cancel nearly $500M of their share-based compensationBoard of Directors authorizes Robinhood to pursue purchasing its shares thatEmergent Fidelity Technologies Ltd. bought in May 2022 MENLO PARK, Calif., Feb. 08, 2023 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the fourth quarter and full year of 2022, which ended December 31, 2022. Fourth Quarter Results: Total net revenues increased 5% sequentially to $380 million.Transaction-based revenues decreased 11% sequentially to $186 million. Options were unchanged at $124 million.Cryptocurrencies decreased 24% to $39 million.Equities decreased 32% to $21 million. Net interest revenue increased 30% sequentially to $167 million, driven by higher short-term interest rates and growth in interest earning assets.Net loss was $166 million, or earnings per share (EPS) of -$0.19, compared with net loss of $175 million, or EPS of -$0.20, in the third quarter of 2022, a sequential improvement of $9 million or $0.01 per share. This includes a -$0.08 EPS impact from the combination of a $57 million loss from the Q4 2022 Processing Error (as defined), as well as a $12 million Ziglu equity security impairment. Operating expenses decreased 0.2% sequentially to $534 million. Operating expenses prior to share-based compensation (SBC) decreased 12% sequentially to $374 million, which included a $57 million Q4 2022 Processing Error. Operating expenses prior to SBC, restructuring charges, and Q4 2022 Processing Error were $319 million, an improvement of $16 million from the third quarter. Share-based compensation expense increased 45% sequentially to $160 million, primarily due to a net reversal of $53 million related to the August 2022 Restructuring recorded in the third quarter that did not recur in the fourth quarter. Adjusted EBITDA (non-GAAP) was positive $82 million, a sequential improvement of 74%.Net Cumulative Funded Accounts increased by approximately 50 thousand sequentially to 23.0 million.Monthly Active Users (MAU) decreased 0.8 million sequentially to 11.4 million, as customers continued to navigate the volatile market environment.Assets Under Custody (AUC) decreased 4% sequentially to $62 billion, primarily driven by lower market valuations for growth stocks and crypto assets, partially offset by contin...