Robinhood Markets Inc (NASDAQ: HOOD) shares are down 12% in premarket trading on Friday after the fintech company reported weaker-than-expected results for its fiscal Q1 as macroeconomic headwinds weighed on trading volume.
Robinhood Q1 earnings snapshot
Lost $392 million versus the year-ago figure of $1.40 billion.
Per-share loss of 45 cents significantly narrowed from last year’s $6.26.
Revenue tanked 43% YoY to $299 million, as per the earnings press release.
FactSet consensus was for 38 cents of per-share loss on $355 million in revenue.
Crypto and equities revenues were down 73% and 39%, respectively.
15.9 million monthly active users in March represented a 10% decline.
CEO Vlad Tenev, however, remains confident the new products, including “Crypto Wallets” will excite customers. The stock is now down 45% for the year.
Tim Seymour’s remarks on Robinhood Q1 results
Earlier this week, Robinhood said it will cut its workforce by 9.0%. It now forecasts operating expenses to see a 2.0% to 5.0% increase this year versus up to 20% it had forecast earlier.
Also on Thursday, the financial services company announced plans of suspending revenue guidance and switching to monthly reporting for some of its metrics. On CNBC’s “Fast Money”, Tim Seymour said:
It was one thing to have revenue be stalling and falling under the weight of the crypto markets and payment for order flow and some other dynamics. But the user loss is obviously a major problem. Cash burn is devastating, and I’m not sure it’s time to nibble here.
The founder and chief investment officer of Seymour Asset Management, however, says Robinhood has an attractive demographic that should eventually play out.
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