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Robinhood will no longer provide revenue guidance after dismal results

Company's stock fell sharply after the online brokerage reported earnings that missed Wall Street estimates.

Robinhood app

Robinhood’s stock fell sharply by about 9% in after-hours trading.

Photo: Gabby Jones/Bloomberg via Getty Images

Robinhood said Thursday that it will no longer provide revenue guidance after the company posted results that missed Wall Street’s projections.

Robinhood’s stock fell sharply by about 9% in after-hours trading. The company reported a loss of $392 million, or 45 cents a share, on revenue of $299 million, which represented a 43% drop from the year-ago quarter.

The company was expected to post a loss of 36 cents a share on revenue of $355.8 million.

"We're seeing our customers affected by the macroeconomic environment, which is reflected in our results this quarter," CFO Jason Warnick said in a statement.

In a sign of even greater uncertainty about future results, Robinhood said it was changing the way it provided revenue projections by providing “certain limited purpose statistical and operational results on a monthly basis.”

“With this change, we no longer intend to provide revenue guidance,” the company said in a statement.

CEO Vlad Tenev said the company has “made huge strides against our roadmap,” citing the rollout of new products and services, including its much-anticipated crypto wallet.

Crypto trading has been a major revenue driver for the company, but Robinhood reported that revenue from that business fell 39% from the year-ago quarter.

The company reported results two days after announcing that it was cutting 9% of its workforce. Tenev cited a “rapid headcount growth” which “led to some duplicate roles and job functions, and more layers and complexity than are optimal.”

Benjamin Pimentel

Benjamin Pimentel ( @benpimentel) covers crypto and fintech from San Francisco. He has reported on many of the biggest tech stories over the past 20 years for the San Francisco Chronicle, Dow Jones MarketWatch and Business Insider, from the dot-com crash, the rise of cloud computing, social networking and AI to the impact of the Great Recession and the COVID crisis on Silicon Valley and beyond. He can be reached at bpimentel@protocol.com or via Google Voice at (925) 307-9342.

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