Robinhood Markets Reports FY2023 Q1 Earnings Results on May 10th
May 26, 2023
Earnings Overview
On May 10th 2023, ROBINHOOD MARKETS ($NASDAQ:HOOD) released their earnings results for the first quarter of FY2023, ending on March 31st 2023. The company had seen a 47.5% year-on-year increase in total revenue, to the tune of USD 441.0 million. Net income came in at USD -511.0 million, compared to the prior year’s figure of -392.0 million.
Price History
On Wednesday, May 10th, ROBINHOOD MARKETS reported its fiscal year 2023 Q1 earnings results. The stock opened the day at $9.3 and closed at $9.1, representing a 0.4% decrease from the previous closing price of 9.1. Despite the strong performance, shares of ROBINHOOD MARKETS still saw a slight decline in price.
Moving forward, investors will be watching to see if ROBINHOOD MARKETS can continue to show growth and maintain its place as a leader in the industry. With strong earnings results and a solid customer base, the company looks poised to meet and exceed expectations in the coming quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Robinhood Markets. More…
| Total Revenues | Net Income | Net Margin |
| 1.5k | -1.15k | -73.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Robinhood Markets. More…
| Operations | Investing | Financing |
| -461 | -507 | -11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Robinhood Markets. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.34k | 16.38k | 7.73 |
Key Ratios Snapshot
Some of the financial key ratios for Robinhood Markets are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 69.8% | – | -70.9% |
| FCF Margin | ROE | ROA |
| -33.5% | -9.6% | -2.8% |
Analysis
GoodWhale conducted an analysis of ROBINHOOD MARKETS‘ fundamentals and our Star Chart shows that this company is strong in asset, growth, and medium in profitability, but weak in dividend. We rate ROBINHOOD MARKETS a health score of 7/10 with regard to its cashflows and debt, which indicates that it is capable to sustain future operations even in times of crisis. We classified ROBINHOOD MARKETS as ‘rhino’, which means that this company has achieved moderate revenue or earnings growth. We believe that the type of investors that may be interested in ROBINHOOD MARKETS are those looking for a company with a good balance sheet but who are not interested in dividend income. Investors who prefer companies with established track records of positive financial performance and are comfortable with moderate growth may also be interested. More…
Peers
There is intense competition between Robinhood Markets Inc and its competitors Coinbase Global Inc, Block Inc, and Paysafe Ltd. All four companies are striving to provide the best service and products to their customers. Each company has its own strengths and weaknesses, so it is important for customers to evaluate all their options before choosing one provider.
– Coinbase Global Inc ($NASDAQ:COIN)
Coinbase Global Inc is a digital asset exchange company. It offers a platform for trading digital assets such as bitcoin, Ethereum, and other cryptocurrencies. The company was founded in 2012 and is headquartered in San Francisco, California. Coinbase has a market cap of 14.32B as of 2022 and a Return on Equity of -5.79%. The company offers a safe and easy way to buy, sell, and store digital assets.
– Block Inc ($NYSE:SQ)
Block.one is a technology company that specializes in the development of blockchain software. The company’s primary product is the EOSIO software, which is a decentralized operating system that can be used to build blockchain applications. Block.one was founded in 2017 by Brendan Blumer and Dan Larimer, and is headquartered in Hong Kong.
– Paysafe Ltd ($NYSE:PSFE)
Paysafe Ltd is a payment processing company that enables businesses and consumers to make and receive payments through a variety of channels. The company has a market capitalization of 1.03 billion as of 2022 and a return on equity of -105.41%. The company’s primary business is providing payment processing and merchant services. It also offers a suite of products and services that enable businesses to accept and process payments, including credit and debit cards, e-wallets, and bank transfers. Paysafe Ltd is headquartered in the Isle of Man.
Summary
Robinhood Markets‘ first quarter of FY2023 showed impressive growth, with total revenue increasing by 47.5% year over year. Net income for the quarter was reported to be at a loss of USD -511.0 million, however this still shows an improvement from the previous year. Analysts suggest that Robinhood Markets can continue to see success, especially with the current momentum, and with the company’s focus on creating financial freedom for everyone. Going forward, investors should keep an eye out for further expansion into emerging markets and services, as well as the company’s strategy to optimize existing products and services.
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