Robinhood published its financial results for Q4 and the full year of 2022, revealing that it had missed its earnings and revenue expectations.
Popular trading platform Robinhood has published the financial results for Q4 and the full year of 2022, and the results are underwhelming. The company missed its earning and revenue expectations, while its crypto revenue also declined.
The company’s revenue missed the expectation of roughly $389 million, hitting $380 million. The loss per share was 19 cents a share. The expectation was a loss of 15 cents a share.
Robinhood stated that a mistake in a small healthcare company was the reason for the sizable decline in earnings. It lost $57 million, or about 7 cents per share, for the error.
The crypto revenues of Robinhood also took a large fall, dropping 24% from the third quarter to $39 million. This revenue also declined in Q3 from the previous quarter.
Robinhood’s shares actually moved up by roughly 3% to $10.80 after hours. The year-to-date performance is also strong, up 30% this year. It’s clear that the crypto winter has affected Robinhood, just as it has other companies in the space. However, the company looks determined to march on and fight through its troubles.
Robinhood to Buy Back Stake in FTX
Robinhood has also made headlines because its board of directors approved a plan to buy back a $578 million stake in the company. This stake was purchased by FTX co-founders Sam Bankman-Fried and Gary Wang last year. The report notes,
“On the capital management front, our Board authorized us to pursue purchasing most or all of our shares that Emergent Fidelity Technologies bought in May 2022. The proposed share purchase underscores the confidence the Board of Directors and management team have in our business.”
Bankman-Fried and Wang purchased roughly 55 million shares of Robinhood stock after taking loans from Alameda Research. The United States Department of Justice has since seized those shares.
Ups and Downs
Robinhood is poised for a comeback after a challenging year in 2022. Despite the ups and downs the company has faced, the most significant hurdles include a $30 million fine imposed by New York’s financial regulator and a class-action lawsuit related to the Gamestop meme stock halting incident.
However, Robinhood has made significant strides by launching its cryptocurrency wallet to users and, most recently, granting access to those on the waitlist. Despite some skepticism, the wallet has entered a rapidly growing market with tremendous potential.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
