Robinhood Reports 2022 Q4 and Full-Year Financial Results
Robinhood, the popular trading platform, has reported its financial results for the fourth quarter and full year of 2022. The company's total net revenues increased by 5% sequentially to $380 million during Q4 2022. However, the net loss was $166 million, or EPS of -$0.19, compared to a net loss of $175 million, or EPS of -$0.20, in the third quarter of 2022. The decrease in revenue was driven by a decrease in transaction-based revenues, equities, and cryptocurrencies. Operating expenses decreased slightly to $534 million, and adjusted EBITDA was positive $82 million. Net Cumulative Funded Accounts increased to 23.0 million, and monthly active users decreased by 0.8 million sequentially to 11.4 million. Assets Under Custody decreased to $62 billion, and net deposits were $4.8 billion. The company's full-year results revealed total net revenues of $1.36 billion and a net loss of $1.03 billion. Operating expenses were $2.37 billion, and share-based compensation expense was $654 million.
Robinhood's CEO and Co-Founder, Vlad Tenev, expressed pride in the team's execution on the 2022 product roadmap and noted that the company is beginning to see meaningful traction on some of the products launched. Tenev and Co-Founder Baiju Bhatt also announced the cancellation of nearly $500 million of their share-based compensation to ensure that the company has as many resources as possible to deliver value to customers and shareholders.
During the fourth quarter, Robinhood continued to deliver on its product roadmap. The company announced Robinhood Retirement, which is the first and only IRA to offer a 1% match for every eligible dollar contributed. The Robinhood Wallet app began rolling out to more than 1 million waitlisted users, and the self-custody wallet serves as a portal to web3 and allows users to trade and swap crypto. The company has continued to raise the yield on its Gold cash sweep program since the September 2022 launch, and it is now offering 4.15%. Robinhood also announced the formation of Sherwood Media, LLC, a new subsidiary that will be home for news and information on the markets, economics, business, technology, and the culture of money.
In conclusion, Robinhood's financial results for the fourth quarter and full year of 2022 show that the company has continued to grow its business and deliver on its product roadmap. While the net loss was significant, the cancellation of nearly $500 million of share-based compensation by the co-founders will provide the company with more resources to continue to serve its customers and create value for its shareholders.