Live news updates: Qualcomm cuts revenue outlook as weak smartphone demand hits chip business
Robinhood kept its assets under custody relatively steady in the third quarter, but also revealed it has lost more than a third of its active users over the past year.
Shares of the broker rose as much as 3 per cent in extended trading after it posted a net loss far narrower than analysts expected, and beat the consensus forecast for revenues.
The company’s assets under custody increased slightly from the second quarter, rising 1 per cent to $64.6bn, thanks to an increase in net deposits that was offset by a decline in equities.
“We remained focused on serving our customers and driving long-term shareholder value in Q3,” Robinhood chief financial officer Jason Warnick said. “We also continued to deliver on our 2022 product roadmap, which helped maintain steady net funded accounts and drive strong net deposits.”
Robinhood earned $63 in revenues per user, slightly lower than the $65 it earned in the same period last year.
The results come from a leaner Robinhood, which cut 23 per cent of its headcount in August, and having cut 9 per cent of its employees earlier in April.
Robinhood said it has also lost about one-third of its monthly active users, falling to 12.2mn in its third quarter from 18.9mn a year ago.
Revenues came in at $361mn, beating analysts’ expectations for $355.3mn, according to a Refinitiv poll. It reported a net loss of $175mn, far narrower than expectations for $310.9mn.
Robinhood shares have shed about two-thirds of their value in the past year as the meme stock frenzy has faded, equities have fallen, and cryptocurrency prices have stagnated.