Robinhood just released its FY2022 Q4 statistics, outlining the company’s profits and losses on its popular retail investor-friendly trading platform. Although the results were generally positive, established asset classes outperformed crypto. It is worth noting, however, that this may soon alter.
After all, Robinhood’s crypto wallet was previously restricted to beta testers and will soon be made available to the general public.
During the company’s quarterly meeting with the board of investors, Robinhood released its thorough Q4 results report. Overall, the company’s overall revenue (EBITDA) increased by 74% year on year to $82 million.
Robinhood attributed the 30% increase in net interest revenue to rising short-term interest rates and a significant increase in interest-earning assets.
Unfortunately, the bottom line does not appear to be promising. Overall, Robinhood lost $166 million in the most recent quarter, resulting in a $0.19 loss per share. However, there is a silver lining: EPS fell $0.20 in Q3, indicating that Robinhood’s stock performed better in the previous quarter.
Crypto-related revenues have fallen as Robinhood prepares to roll out cryptocurrency wallets to all consumers. Crypto-related products earned only roughly $39 million in revenue, a 24% decline from the previous quarter.
However, Robinhood CEO Vlad Tenev is optimistic about the rollout of new goods, including the crypto wallet.
“Looking back over the past year, I’m incredibly proud of the tremendous execution of our team on our 2022 product roadmap. We’re now starting to see meaningful traction on a number of the products we launched, which gives us confidence they can grow into significant business lines over time.”
Tenev also disclosed that Emergent Fidelity Technologies, the business that owns around $55 million in Robinhood shares for Sam Bankman-Fried, has been authorized by the board of investors to sell as many shares as possible to Robinhood. The DOJ is currently pursuing the shares in question through seizure, a move that SBF has opposed and asked to maintain them to pay for his legal defense.
The leadership of Robinhood is still confident in their business concept and optimistic about a more prosperous 2023 despite the lackluster performance throughout the most recent quarter and the entire fiscal year 2022.
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