Robinhood’s total revenues increase amid a 208% plunge in net loss

The Robinhood social trading platform has released a report for the first quarter of 2023. The company’s financial performance during the first three months of 2023 shows a 208% decline in the net loss, despite a 16% gain in the total net revenue.

Robinhood reports an over 200% plunge in net loss

The total net revenue reported by Robinhood in Q4 2022 came in at $380 million, while the net loss during the period came in at $166 million. The net loss also dropped by 30% from the $392 million reported during the previous period.

In the recent report, Robinhood also said the earnings per share dropped $345 million, equivalent to $0.38. The social trading platform attributed the losses to a single share-based compensation (SBC) expense of $485 million linked to the Co-Founder’s cancelation of the 2021 market-based restricted stock unit award in February.

“Operating expenses increased by $416 million sequentially to $950 million, primarily due to the 2021 Founders Award Cancellation. Operating expenses before SBC decreased 6% sequentially to $352 million,” Robinhood said.

Despite the significant net loss reported by the company, the platform reported quarterly revenues of $441 million, which surpassed market expectations. The firm also reported an 11% increase in transaction-based revenues compared to the previous quarter.

During the first quarter, the revenues reported by the company reached $207 million, which were attributed to a 7% increase in options trading and a 29% growth in equities. The options and equities markets reported $133 million and $27 million worth of transaction-based revenues, respectively. The revenues derived from cryptocurrencies also dropped by 1% to $38 million.

Robinhood also reported a 25% rise in the net interest revenue in Q1 2023 compared to Q4 2022. The firm’s return from borrowings to customers also reached $208 million during the quarter. The revenue was higher than the $167 million reported during the previous quarter and higher than the $55 million reported a year earlier.

Robinhood wants to expand to the UK

The Robinhood exchange also said it would launch a 24-hour market in the coming week to support customers who want to trade individual stocks daily for five days each week.

Robinhood’s CEO, Vlad Tenev, commented on the plans for the first quarter, saying that the company had a good start in 2023 as it continued to support innovation. The company was also preparing to launch a 24-hour market in the coming week to support its growth plans.

Robinhood is currently making plans to re-enter the UK market. The company issued an update on this development, saying it was nearly done with the plans to expand its operations to the UK.

The retail trading platform explained that it had an experienced team leading its UK expansion plans and an existing license. The company also believed it was on track to meet its goals to launch brokerage services in the UK by the end of the year.