• Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter.
• The company also said its board had authorized the company to pursue purchasing all or most of the 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022, and canceled nearly $500 million of its share-based compensation.
• Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share.
Robinhood’s Crypto Revenue Declined 24%
Online trading brokerage Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter. This was part of overall earnings and revenues estimates for the quarter that were missed by Robinhood.
The Company Authorized Purchase Of Shares
The company also said its board had authorized it to purchase all or most of 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022. Additionally, nearly $500 million worth of share-based compensation was canceled by Robinhood.
Rollout Of Polygon-Based Web3 Wallet
Robinhood noted that its Robinhood crypto wallet was rolled out to more than one million waitlisted users after a beta version of its Polygon-based Web3 wallet was released in September. This rollout allowed users to access Ethereum DeFi protocols without having to leave their app interface.
Q4 Adjusted Loss Ahead Of Estimate
Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share according to FactSet, on revenue below analyst expectations at $380 million versus an estimated $396 million.
Shares Up 30% Year To Date
Shares were up about 3% to $10.80 after hours Wednesday and are up about 30% year to date but down 21% over last year despite missing both earnings and revenues estimates for Q4