Robinhood (HOOD) Q2 Revenue Tops Consensus, Sees Headwinds for Third Quarter

Robinhood (NASDAQ: HOOD) reported Q2 EPS of ($2.16), may not compare to the analyst estimate of ($0.15). Revenue for the quarter came in at $565 million versus the consensus estimate of $521.84 million.

• Transaction-based revenues increased 141% to $451 million in the second quarter of 2021, compared with $187 million in the second quarter of 2020.

Financial Outlook:

Our business is affected by many factors, including seasonality, general market conditions and retail trading behavior as well as significant, unanticipated market events. Many of these factors worked in our favor during the three months ended June 30, 2021, resulting in a very strong quarter with record revenues. For the three months ended September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter.

For operating expenses, we will continue to invest in key areas to enhance platform capabilities, drive product innovation and improve customer support, as well as building upon our regulatory and compliance functions. We will also record a one-time cumulative charge of $1.0 billion in stock-based compensation for restricted stock units related to our IPO in the third quarter. Total remaining unamortized stock-based compensation of $2.2 billion as of the IPO date will be recognized over a weighted average remaining service period of 2.6 years.

For earnings history and earnings-related data on Robinhood (HOOD) click here.

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