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Robinhood (HOOD) pops 12% on unexpected FQ4 profit and 'highly attainable' guidance

February 14, 2024 5:55 AM

Robinhood’s (NASDAQ: HOOD) shares popped more than 12% in premarket trading Wednesday after the stock trading platform reported better-than-expected FQ4 earnings and revenue.

The firm posted earnings per share (EPS) of $0.03, versus the loss per share of $0.01 that analysts expected. Revenue came in at $471 million, also above the consensus estimates of $456.33 million.

Robinhood’s transaction-based revenue rose by 7.5% year-over-year to $200 million, exceeding the estimated $191.2 million. Crypto-related revenue reached $43 million, beating the $37 million forecast.

The company also reported 10.9 million monthly active users for the quarter, slightly above the anticipated 10.83 million.

For fiscal 2024, Robinhood anticipates total operating expenses to be between $1.85 billion and $1.95 billion, compared to analysts’ expectations of $1.95 billion.

“Mgmt. guided to 2024 combined adj. opex to be in the $1.85-1.95B range (+5% y/y) containing $85M of SBC per quarter,” BofA analysts led by Craig Siegenthaler said in a note.

“Given recent positive signs of managements seriousness around cost discipline including multiple headcount reductions on top of their $485M Founders Award cancellation, we view their targets as highly attainable,” they commented.

By Vahid Karaahmetovic

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