• Robinhood reported $39 million in crypto trading revenue in Q4, down 24% from Q3.
• The company also announced its intention to purchase 55 million shares from a holding company for former FTX execs and cancelled nearly $500 million of its share-based compensation.
• Robinhood posted an adjusted loss of 19 cents a share on revenue of $380 million, below the analyst estimate.
Robinhood’s Crypto Revenue Declines
Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter. The online trading broker overall missed both earnings and revenues estimates for the quarter.
Share Purchases and Cancelled Compensation
The company also said its board had authorized it to pursue purchasing all or most of the 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022, and canceled nearly $500 million of its share-based compensation.
Rollout Of Web3 Wallet
The company noted that its Robinhood crypto wallet was rolled out to more than one million waitlisted users in 2022 after a beta version of its Polygon-based Web3 wallet was released in September.
Overall Performance In Q4
Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share, according to FactSet, on revenue of $380 million, below the analyst estimate of $396 million. Shares were up about 3% to $10.80 in after-hours trading on Wednesday.
Robinhood is scheduled to hold a call with analysts at 5 p.m. ET to discuss their future plans going forward.