With a staggering net loss of $511m in the first financial quarter of 2023, Robinhood Markets Inc. ended the second quarter on a more positive note with a net income of $25m. The US-based, commission-free stock trading and investment app topped most Wallstreet predictions when it released its Q2 results on Wednesday.
Robinhood’s Q2 results: a ray of light at the end of its dark start to the year
GAAP earnings per share came in at $0.03 as opposed to the analyst forecast of an estimated $0.02 loss. Similarly, Robinhood’s reported revenue of $486m, a sequential 10% increase, was more than the $472m estimation. The company attributed this rise to higher proxy and net interest revenues, partially offset by decreased transaction-based revenues.
However, the platform sported only 10.8m active users as opposed to the predicted 11.7m. CEO and co-founder of Robinhood Markets, Vlad Tenev, commented:
In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company. Guided by our bold product roadmap we’re continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better.
Jason Warnick Source: airbase
Jason Warnick, CFO of Robinhood, backed this positive upsurge and said:
With five consecutive quarters of revenue and Adjusted EBITDA growth, we’re continuing to drive efficiency across our operations while investing in customer experience. Looking ahead, we remain focused on delivering for customers and growing our business.
The company’s new offerings include a 5-day-a-week, 24-hour market that all customers can access to invest in select stocks and ETFs.
