Robinhood user base in January 2023 was 31% smaller than last year

Robinhood, one of the leading trading platforms, saw a 31% drop in monthly active users in January 2023 compared to the same period last year. The monthly active users (MAU) count went from 17.3 million in January 2022 to 12 million in January 2023, so on a YoY basis, the company has seen a major drop.

However, on the positive side, the number of monthly active users actually increased by 600,000 from 11.4 million seen in December 2022. Interestingly, the situation is similar when it comes to the majority of other statistics involving the company.

Robinhood saw YoY drops and MoM growth in most statistics

The total worth of AUC (Assets Under Custody) dropped on a YoY basis from $86.8 billion to $74.7 billion, or by 14%. Meanwhile, it also rose by 20% on a MoM basis, from $62.2 billion as reported in December last year.

Robinhood is also one of the biggest trading apps that offers crypto assets in addition to traditional assets. As such, it also recorded the strongest drop in volume when it came to cryptocurrencies that were traded on the platform. Again, on the YoY basis, the company saw a 59% drop, which took the January volume to $3.7 billion. Meanwhile, listed crypto assets also saw the largest monthly rebound, which took the volume up by 95% from $1.9 billion in December 2022 to the mentioned $3.7 billion in January 2023.

Shares saw a weaker drop, as well as a weaker rebound than cryptos, going down by 24% YoY, from $60.5 billion in January 2022 to $46 billion in January 2023. However, they also rose by 19% on a monthly basis, from $38.6 billion recorded in December. In fact, compared to December 2022, January has brought an increase in transaction revenue for equities and options too, in addition to shares and cryptocurrencies. Equities went up by 19% to $46 billion, options climbed by 10% to $82.9 billion, and cryptos, as mentioned, rose by 95% to $3.7 billion.

Moving on, the same situation was recorded when it came to DARTs (Daily Average Revenue Trades). Crypto DARTs dropped by 36% annually while going up by 37% monthly. Equity DARTS dropped 21% yearls, and rose 3% monthly.

Robinhood’s Q4 2022 financial report

Robinhood’s monthly improvement in recorded metrics allowed its own stock to go up on NASDAQ, gaining almost 6% and closing the day with a price of $10.63 per share. However, the stock price is still 70% down from the price it had when the company went public in July 2021.

The company also recently released its financial report for Q4 2022, noting a 5% growth in total net revenue, which left it at $380 million. The increase happened despite the 11% drop in revenue that came from transactions, which sank to $186 million.

Crypto assets saw the largest hit in trading revenue, going down from $39 million to $24 million. Apart from that, Q4 2022 was the second quarter in a row where the company saw declines in crypto trading.