Financial services firm Robinhood has published its financial results for the fourth quarter and the full year 2021. The company saw total revenue jump in the final quarter of the year, but also some substantial losses.
Q4 2021 net loss stood at $423 million, compared to the $13 million net income in Q4 of 2020. The net loss for the whole year was $3.69 billion.
Additionally, the number of active users fell to 17.3 million last quarter from 18.9 million in the previous one.
The company also made a bleak revenue forecast for the first quarter of 2022. Robinhood expects less than $340 million in total net revenues in Q1 2022.
Vlad Tenev, the CEO and Co-Founder of Robinhood Markets, commented:
We had a momentous year, nearly doubling the number of customers on the platform and making critical investments in our team and infrastructure to support growth. This year, we’ll expand our ecosystem of products that make Robinhood the best place to start investing and build wealth for the long term.”
Following these announcements, the shares of Robinhood Markets tanked 15% in after-hours trading on Thursday.
2021 highlights
Last year saw an increased demand for crypto products which had Robinhood boost its product offering. The company introduced new crypto wallets program last week. Additionally, also made strong executive additions last year.
The company stated:
Robinhood has continued to improve the product experience, adding contextual in-app education, rolling out Crypto Gifts and recurring investments, opening up access to IPOs, and giving customers a voice with the companies they invest in through the acquisition of Say Technologies and the integration of its Q&A platform into the Robinhood app.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
